Options for Selling or Auctioning Personal Property to Reimburse Estate Expenses and Equalize Distributions Among Heirs

1. Detailed Answer

When you administer an estate in New Hampshire, you must pay debts and expenses before distributing assets to heirs. Under New Hampshire law, the personal representative may sell personal property to generate funds. This process helps reimburse estate expenses and ensures each heir receives an equal share.

Authority to Sell Personal Property

New Hampshire RSA 556:17 grants the personal representative power to sell estate assets without prior court approval six months after appointment. The representative may use public auction, sealed bids, or private sale. For complete details, see RSA 556:17: https://www.gencourt.state.nh.us/rsa/html/L/556/556-17.htm.

Court-Ordered Sale

If you need to sell before six months or the estate faces special circumstances, you can petition the probate court for authorization under RSA 556:16. The court reviews the request and may issue an order specifying sale terms. See RSA 556:16: https://www.gencourt.state.nh.us/rsa/html/L/556/556-16.htm.

Methods of Sale

• Public Auction: Open to any bidder; maximizes market exposure.
• Sealed Bids: Heirs and third parties submit confidential offers; the highest wins.
• Private Sale: Negotiated sale, often used for high-value or specialized items.
• Online Auction: Platforms like eBay; expands buyer pool.

Equalizing Distributions

Once the sale converts property to cash, use estate funds to settle debts and administrative costs. After reimbursement, divide the remaining balance among heirs according to RSA 551:1 (intestate shares) or as directed by the will. See RSA 551:1: https://www.gencourt.state.nh.us/rsa/html/LIV/551/551-1.htm.

If specific personal items have sentimental value, heirs can agree on an in-kind distribution followed by a cash adjustment. For example, one heir keeps a family heirloom, while others receive additional funds to equalize the total value.

2. Helpful Hints

• Obtain a professional appraisal to establish fair market value before sale.
• Consult an auctioneer experienced in estate items to maximize proceeds.
• Notify all heirs in writing about the sale plan and proposed timeline.
• Document bids and sale results in the estate file for transparency.
• Retain copies of court orders if you seek early sale authorization.
• Consider mediation if heirs disagree on distribution or sale method.
• Keep detailed records of expense reimbursements and final distributions.