Disclaimer: This article provides general information about Ohio probate law. It is not legal advice. Consult a licensed attorney for advice about your situation.
Overview of Bringing Real Property Into an Ohio Estate
When a decedent’s personal property cannot cover all valid claims, an executor or administrator may need to sell real property to satisfy debts under ORC 2117.06. This process ensures creditors receive proper payment.
Step 1: Identify and Inventory Estate Assets
List all assets owned by the decedent at death. Include deeds, titles and records. Determine which assets pass through probate. Probate assets typically include real estate solely titled in the decedent’s name. Non-probate assets—such as joint tenancy property or assets with transfer-on-death designations—fall outside administration unless challenged.
Step 2: Evaluate Insolvency and Need for Real Property Sale
Review creditor claims against the estate. Ohio law requires personal property to pay debts first. If personal property is insufficient, the executor can seek court approval to sell real estate under ORC 2117.06.
Step 3: File a Petition for Sale of Real Property
- Submit a written petition to the probate court.
- Identify the property and explain the insufficiency of personal assets.
- Request an order authorizing sale of real property.
Step 4: Appoint Commissioners and Appraisal
Once the court grants the sale order, it appoints three disinterested commissioners to appraise the property. Commissioners set the fair market value and report to the court.
Step 5: Provide Notice and Conduct the Sale
- Advertise the sale per court rules to ensure public notice.
- Hold a public auction or other approved sale method.
- Offer the property at or above appraised value.
Step 6: Distribute Proceeds to Creditors and Heirs
After closing, the executor deposits sale proceeds into the estate account. Pay valid claims in the order set by ORC 2117.06. Provide receipts and a final accounting to the court before closing the estate.
Challenging Pre-Death Transfers to Bring Property Into the Estate
If the decedent transferred real property shortly before death to avoid creditors, the executor may seek to set aside the transfer. Under ORC 2106.01, a transfer made with intent to defraud can be voided. The executor files a civil action in probate court, presents evidence of intent, and asks the court to recover the property for estate administration.
Helpful Hints
- Start asset inventory promptly to meet statutory deadlines.
- File all creditor notices within six months of appointment (ORC 2117.06).
- Maintain clear records of appraisals and sale advertisements.
- Consult an attorney before challenging pre-death transfers.
- Communicate with creditors to resolve claims efficiently.
Properly bringing real property into the estate secures creditors’ rights and facilitates orderly administration. Follow each step carefully and seek professional guidance when needed.