Sell real estate while in probate?

What is the name of your state? Missouri

My ex-lawyer advised me before not to sell real property during probate or else I'm gonna be hammered on taxes and fees. That I should only sell real estate when probate closes.

There's no liquid cash to pay the decedent's debts, and I may have to ask the court to sell real estate to pay the creditors. In this situation, "am I gonna be hammered on taxes and fees"?

Thanks!

Mikey&Abby said:

What is the name of your state? Missouri

My ex-lawyer advised me before not to sell real property during probate or else I'm gonna be hammered on taxes and fees. That I should only sell real estate when probate closes.

There's no liquid cash to pay the decedent's debts, and I may have to ask the court to sell real estate to pay the creditors. In this situation, "am I gonna be hammered on taxes and fees"?

Thanks!

Click to expand...

This may be another good reason why ths is your ex-lawyer. Did he/she give any explanation why this may be the case? The assets of the deceased received a step in cost basis to the fair market value on the deceased's date of death. That applies to whether the assets are sold during probate or when title is transferred to the beneficiaries. That pretty much eliminates capital gains tax unless the value really increases between the date of death and the date of sale. What other taxes was the ex-lawyer talking about?

Besides, how can probate be closed if the creditors are not paid? Will you pay them out of your own pocket?