What options exist for selling or auctioning personal property to reimburse estate expenses and equalize distributions among heirs?

Detailed Answer

In Washington, a personal representative (PR) or executor may sell or auction estate-owned personal property to pay debts, reimburse administration costs, and ensure each heir receives an equal share. Key legal authorities include RCW 11.76.080 (sale of personal property), RCW 11.36.010 (payment of costs), and, for small estates, the summary procedure under RCW 11.62.040.

1. Court-Approved Public Sale (Auction)

Under RCW 11.76.080, the PR may petition the court for permission to conduct a public auction. The court issues an order specifying the time, place, and notice requirements. Proceeds first satisfy funeral bills, taxes, and administration expenses. Remaining funds enter the residue for equal distribution among heirs.

2. Private Sale

If all heirs consent in writing, the PR may sell items at fair market value without a hearing. The PR must document the sale price and terms. Proceeds cover debts and costs, then flow into the residual estate.

3. Sealed Bids

The PR may solicit sealed bids, open them publicly, and accept the highest bid. This method promotes transparency and can yield higher net proceeds.

4. Estate Auction House

Hiring a bonded auctioneer or estate liquidator streamlines marketing, valuation, and sale. Auctioneers handle advertising, bidder registration, and settlement. Fees typically range from 10% to 20% of gross sales.

5. Online Auction Platforms

Using reputable online marketplaces (e.g., eBay, LiveAuctioneers) can broaden buyer reach. The PR must carefully list items, set reserve prices, and monitor bidding. Document all sale records for court review.

6. Garage Sale or Consignment

For lower-value items, a well-publicized garage sale or consignment arrangement can convert personal property into cash. Keep clear receipts and report net proceeds to the court or on the estate accounting.

Equalizing Distributions

After selling assets, the PR credits each heir’s share of cash or in-kind property to equalize distributions:

• Compute each heir’s pro rata share based on the net estate value.
• Reimburse the estate’s administrative expenses before dividing the residue (RCW 11.36.010).
• Deliver cash, property, or a combination as needed to ensure each heir receives equivalent value.

If an heir objects to the proposed sale or distribution, they may petition the probate court for review. The court can confirm, modify, or require an alternative sale method.

Helpful Hints

• Obtain professional appraisals for high-value antiques, jewelry, or collectibles.
• Secure written consent from all heirs for private sales to avoid court costs.
• Provide timely public notice of auctions to maximize attendance and bids.
• Keep detailed sale records—copies of listings, bids, invoices, and canceled checks.
• Compare auctioneer fees and online platform commissions to optimize net proceeds.
• Consult a probate attorney if heirs dispute the sale method or distribution plan.
• File an updated inventory and accounting with the court showing sale proceeds and distributions.