Detailed Answer
When a Wisconsin resident dies owning real property, that property becomes part of the probate estate for payment of debts and claims. Under Wisconsin law, you must follow specific steps to include real estate in the estate and, if necessary, sell it to satisfy creditor claims.
1. File a Petition to Open Probate and Appoint a Personal Representative
Begin by filing a probate petition in the circuit court of the county where the decedent lived. Refer to WIS. STAT. § 851.05 (https://docs.legis.wisconsin.gov/statutes/statutes/851/05). Once approved, the court issues letters of administration or testamentary, empowering the personal representative to manage estate assets, including real property.
2. Inventory All Estate Assets
Within three months of appointment, the personal representative must file an inventory listing all estate assets under WIS. STAT. § 859.01 (https://docs.legis.wisconsin.gov/statutes/statutes/859/01). This inventory must include a description and estimated value of the real property.
3. Evaluate Liquid Assets Against Claims
Compare available cash and personal property sale proceeds with creditor claims. If estate funds fall short, the personal representative may need to liquidate real estate to cover valid debts.
4. Petition the Court for Authority to Sell Real Property
If a sale is required, file a petition under WIS. STAT. § 865.02 (https://docs.legis.wisconsin.gov/statutes/statutes/865/02). Your petition must describe the property, proposed sale method (public auction or private sale), and reasons for sale.
5. Provide Notice of the Proposed Sale
Wisconsin law requires notice to interested parties and publication in a local newspaper. See WIS. STAT. § 865.09 (https://docs.legis.wisconsin.gov/statutes/statutes/865/09). The court schedules a hearing to review and approve the sale.
6. Conduct the Sale and Distribute Proceeds
After court approval, complete the sale and pay closing costs. Apply net proceeds in the order required by statute: administrative expenses, funeral costs, creditor claims, taxes, and finally distributions to heirs or devisees. For appraisal standards and distribution rules, consult WIS. STAT. § 859.21 (https://docs.legis.wisconsin.gov/statutes/statutes/859/21).
Helpful Hints
- Verify title and check for liens before seeking sale authority.
- Obtain an independent appraisal to support fair market value under WIS. STAT. § 859.21.
- Review the deadline for creditor claims under WIS. STAT. § 863.17 (https://docs.legis.wisconsin.gov/statutes/statutes/863/17).
- Consult the court clerk about local publication requirements and timelines.
- Keep detailed records of notices, bids, and communications throughout the process.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. For guidance specific to your situation, consult a Wisconsin probate attorney.