Disclaimer: This article is for informational purposes only and does not constitute legal advice. For guidance tailored to your situation, consult a qualified attorney.
Detailed Answer
When an estate in Massachusetts lacks sufficient liquid assets to satisfy valid creditor claims, the personal representative (executor or administrator) may need to sell estate property. This process occurs under the Massachusetts Uniform Probate Code (MUPC), codified at G.L. c. 190B.
1. Determine the Need for Sale
First, identify all allowed claims. Under MUPC § 3-801, you must send notices to known creditors and publish a notice to unknown creditors (MUPC § 3-801). Allowed claims include funeral expenses, taxes, and unsecured debts.
2. Inventory and Appraise Assets
File an inventory of estate assets with the Probate and Family Court registry within 90 days of appointment (MUPC § 3-907). Obtain one or more appraisals to establish fair market value.
3. File a Petition to Sell
Under MUPC § 2-709, you must petition the court for authorization to sell real or personal property when necessary to pay debts (MUPC § 2-709). The petition should include:
- List of assets proposed for sale
- Estimates of sale proceeds
- Summary of creditor claims
- Copies of appraisals
4. Give Notice and Attend the Hearing
Serve all interested parties (heirs, devisees, beneficiaries) with notice of the hearing. The court sets a date to review the petition. It may ask questions about pricing, marketing plan, and necessity of the sale.
5. Conduct the Sale
Once the court approves, the personal representative may sell at public auction or by private contract. Keep detailed records of bids, contracts, and closing statements. Net proceeds go into the estate account.
6. Pay Creditors and Distribute Remaining Assets
Use sale proceeds to pay allowed claims in priority order (MUPC § 3-803). After satisfying debts, distribute any surplus to heirs or devisees under MUPC § 3-716 (MUPC § 3-716).
Helpful Hints
- Start creditor notice early to meet strict deadlines.
- Obtain multiple appraisals to support fair market value.
- Keep clear records of communications and transactions.
- Consider hiring a real estate broker for complex sales.
- Consult the Probate and Family Court clerk for procedural rules.
- Review Massachusetts court guidelines on sale procedures.