Detailed Answer
When a decedent owns real property in Georgia and the estate lacks sufficient liquid assets, you must include (or “bring in”) that real property into the probate estate before you can use its value to pay estate claims. Below are the key steps under Georgia law:
- Determine Ownership and Probate Requirement. Confirm that the property is titled solely in the decedent’s name or as a life estate. Property held in joint tenancy with right of survivorship or tenancy by the entirety may pass outside probate. Only property in the probate estate can satisfy creditor claims.
- File the Probate Petition. Submit a petition for letters testamentary (if there is a will) or letters of administration (if intestate) in the probate division of the superior court in the county where the decedent resided. See O.C.G.A. § 53-3-20 (Justia).
- Obtain Letters of Administration or Testamentary. Once the court issues letters, the appointed personal representative (executor or administrator) gains the authority to manage estate assets, including real property.
- Give Notice to Creditors. Publish or mail the statutory notice to creditors under O.C.G.A. § 53-7-60 and § 53-7-61 (Justia). Creditors must file claims within the allowed period.
- Inventory and Appraise the Property. Prepare and file an inventory that lists all real property within 90 days after appointment, as required by O.C.G.A. § 53-7-12 (Justia). Obtain one or more appraisals under O.C.G.A. § 53-6-70 (Justia) to establish fair market value.
- Petition for Sale of Real Property (if necessary). If estate cash is insufficient to pay claims, file a petition for sale of real property under O.C.G.A. § 53-7-74 (Justia). The court will review and approve sale terms to ensure fair process and adequate price.
- Conduct the Sale and Distribute Proceeds. After court approval, sell the property—often by public auction or sealed bids. Deposit proceeds into the estate account, then pay valid creditor claims in priority order under O.C.G.A. § 53-7-1 and following sections.
- Report and Close the Estate. File a final accounting showing the sale, the proceeds, and claim payments. Once the court approves the accounting, you may distribute any remaining funds to heirs or beneficiaries and request discharge of the personal representative.
Helpful Hints
- Always verify property title status before probate. Jointly held property may not require administration.
- File the probate petition promptly to start the creditor-claim deadlines.
- Use certified or bonded appraisers to avoid valuation challenges.
- Keep detailed records of notices, appraisals, sale advertisements, and proceeds.
- Consult a probate attorney if sale under court supervision seems complex.
Disclaimer: This article provides general information on Georgia probate procedures and is not legal advice. Consult a qualified probate attorney for guidance on your specific situation.