Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When a decedent’s personal property fails to satisfy valid estate claims, Maine law allows the sale or mortgage of real property to generate funds. Follow these steps to bring real property into the estate for payment of claims:
- Appointment of a Personal Representative. The probate court issues Letters of Administration or Testamentary Letters under Title 18-A M.R.S. § 3-201. These letters empower the personal representative to manage estate assets.
- Inventory and Appraisal. Within 30 days of appointment, file an inventory and appraisement of all estate property as required by 18-A M.R.S. § 3-903. This provides a clear asset picture for valuation and distribution.
- Creditors’ Claims Period. Under 18-A M.R.S. § 3-801, publish notice to creditors and allow nine months for valid claims. Proper notice prevents future disputes.
- Determining Insufficient Personal Assets. After the claims deadline, if personal property cannot satisfy debts, the personal representative must seek court approval to liquidate real estate under 18-A M.R.S. § 3-905.
- Petition for Sale of Real Estate. File a petition with the probate court under 18-A M.R.S. § 3-906, outlining reasons for sale, property description, and value. (See https://legislature.maine.gov/statutes/18-A/title18-Asec3-906.html.)
- Notice and Hearing. Serve the petition on heirs, devisees, and interested parties. The court schedules a hearing to review necessity and fairness.
- Court Order. If the court finds the sale necessary, it issues an order under 18-A M.R.S. § 3-907 authorizing sale on terms that protect estate interests. (See https://legislature.maine.gov/statutes/18-A/title18-Asec3-907.html.)
- Sale Execution. Advertise and conduct the sale per court order. After closing, record the deed transfer at the registry of deeds.
- Payment of Claims. Deposit proceeds into the estate account. Use Title 18-A M.R.S. § 3-901 priorities to pay funeral expenses, administrative costs, taxes, and creditor claims. (See https://legislature.maine.gov/statutes/18-A/title18-Asec3-901.html.)
- Accounting and Closing. File a final account showing distribution of proceeds and request court approval to close the estate.
Helpful Hints
- Keep detailed records of all filings, notices, and sale documents.
- Obtain a certified appraisal to support court petitions and sale price.
- Serve timely notices to avoid creditor challenges or delays.
- Review homestead and exemption rights under Title 33 M.R.S. § 1601 before selling a decedent’s residence.
- Consult a probate attorney when asset values or beneficiary interests are disputed.
- Follow statutory deadlines closely to minimize personal liability for the personal representative.
- Use a qualified title company to handle closing and recording procedures.