Liquidation refers to the translation of hard assets to cash. This process does not only occur when one dies; it can actually be done when one wants to invest in something else. In this case of personal choice, it is easy because the owner gets to choose who does the liquidation for them.
Liquidation of an estate often occurs when the owner of the estate dies. The possessions of the deceased can be grouped into two classes:
- Physical personal property – These area items like cars, homes
- , land, etc.
- Immaterial personal property like stocks, bonds, etc. These are not commonly liquidated if they have a designated beneficiary.
Is estate liquidation legal?
Estate liquidation is done to legally clear out all the material personal property depending on the title of the property. If it has any designated beneficiaries, it may or may not be liquidated. In some cases, depending on the agreement the family has, even the immaterial property maybe liquidated.
The family or individual that needs to liquidate must contact a liquidating family who will help them in the process. It is wise to contact an estate seller/liquidator as soon as the death happens so that you get things cleared up fast enough.
The liquidating process also helps the family or the individual to get over the death of their loved one fast as they no longer see the deceased’s belongings. Liquidation could also take place to pay debts that the deceased left unpaid. These debts may include all sorts of taxes which the family has to pay.
How should liquidation take place after death?
- Obtain several copies of the death certificate from the family members.
- Locate any will or trust that determines who is appointed to serve as a trustee.
- Locate any creditors who were owed by the deceased and contact them. Negotiate some of the debts to see if any of them are willing to cancel the debt out as bad debt.
- Receive the inventory for all the items they wish to liquidate.
- Secure the property. You must lock down the home to ensure no item is removed from the house. Have the person responsible sign the contract which allows you to liquidate the property. Be sure to explain that nothing should be removed after signing the contract.
- If the deceased left any minors or dependent adults, secure their future before releasing the money back to the person responsible.
Find help as fast as you can
With your loved one already deceased, there is surely a lot on your mind to deal with. The faster you let go of the property left behind, the better you will be emotionally. If you hold on to it, may cause you to grieve longer.
You cannot do all of the above alone. You will need help and it is best if you ask for it. A professional estate liquidator will come in handy to help you with all the processes that you need to go through. Finding an understanding liquidating company is vital to getting quality services.
June 22, 2018