Deciding how, when, and to whom to sell the real estate of your loved one may turn out to be the most involved aspect during the process of administering their estate. The Independent Administration of Estates Act (IAEA) is a series of laws that were implemented to allow personal representatives to administer estates with less court involvement. Ideally, this saves the estate both time and money. The ability to take advantage of the IAEA can be granted under a will or by decision of the court. Regardless, the personal representative is not required to sell real estate with minimal court supervision under the IAEA.
Five Considerations for Deciding Whether to Sell Real Estate Under the IAEA
Since the facts and circumstances surrounding each estate administration are unique, personal representatives must make a decision on whether or not to sell real estate under the IAEA. In some cases, the personal representative may prefer the greater involvement of the court. Personal representatives must consider the following when making this choice:
- The process for selling the real estate under the IAEA is usually quicker if court supervision is not involved.
- Selling the real estate under the IAEA avoids the requirement for overbidding or court confirmation of the sale.
- Overbidding, can, however, result in a higher overall sale price for the property.
- The personal representative is able to agree to any terms and contingencies that it sees fit, provided that such terms and contingencies are in the best interest of the estate and the beneficiaries.
- The current economic and real estate market.
After taking all of these considerations into account, the personal representative can then make a decision as to whether to take advantage of the provisions of the IAEA, or to instead opt for greater court involvement in the process. For additional helpful information about implementing estate plans, we encourage you to sign up for our newsletter today.