Disclaimer: I am not a lawyer. This information is for educational purposes only and is not legal advice.
Detailed Answer
Under New Mexico law, you must follow formal probate procedures to bring real property into an estate for paying claims. Below are the main steps:
1. File a Petition for Probate
The personal representative (also called executor) files a petition with the district court in the decedent’s county of residence. See N.M. Stat. Ann. §45-3-301 (link) for requirements, including presenting the will and death certificate.
2. Serve Notice to Creditors and Heirs
After appointment, the court requires notice publication and mailing so creditors can file claims. See N.M. Stat. Ann. §45-3-307 (link). Creditors generally have six months to present claims against the estate.
3. Inventory Estate Assets
Within 30 days of appointment, the personal representative submits an inventory including all real property with legal descriptions. See N.M. Stat. Ann. §45-3-710 (link).
4. Determine Homestead and Exempt Allowances
The decedent’s family may claim a homestead allowance or other exemptions under N.M. Stat. Ann. §45-2-401 (link). These allowances reduce the property available to creditors.
5. Obtain Court Order to Sell Real Property
If sale of real estate is needed to pay debts, the personal representative petitions the court under N.M. Stat. Ann. §45-3-714 (link). The petition must state the necessity of sale, describe the property, and propose terms.
6. Conduct and Confirm the Sale
Once authorized, the representative advertises and holds a public sale per N.M. Stat. Ann. §45-3-719 (link). After the sale, file a confirmation petition and record the court’s order with the county clerk.
7. Pay Claims and Distribute Proceeds
Use the sale proceeds to pay valid claims, administration expenses, and allowances in the priority set by N.M. Stat. Ann. §45-3-806 (link). Distribute any remaining funds to beneficiaries according to the will or intestacy rules.
Helpful Hints
- Initiate formal probate when real property is involved; small-estate procedures do not cover real estate.
- Keep accurate legal descriptions and deed copies for each parcel.
- Track creditor deadlines closely—missed claims can complicate administration.
- Verify homestead and personal property exemptions before authorizing a sale.
- Maintain organized court records of all petitions, orders, and sale confirmations.
- Consider consulting a probate attorney for drafting petitions and handling court procedures.