selling estate assets to pay expenses

What is the name of your state (only U.S. law)? Rhode Island

Will has been probated and I have been appointed executor. The estate expenses exceed the cash assets so that some of the will's gift/fixed assets need to be sold to meet expenses. Is there a specific required format to establish which gifts should be sold off first, second, etc. ?

Generally, you should not sell specific bequests first. But, in reality, there is a lot of potential for breaching your fiduciary duties and someone is certainly going to get angry here, so make sure you make up a plan with your attorney on the order of sale.

liquidating the two general bequests (#5 "all my ($) accounts" to 4 of 5 heirs and then #2 "my personal possessions..."to 5 of 5 heirs) will not satisfy the amount of cash needed to satisfy estate debt, so I'm advised that specific bequests need to be liqudated in the reverse order of how they are listed in the will (#4, out-of-state real estate to 1 of 5 heirs and then #3 in-state real estate to 1 of 5 heirs). This would be done only per guidance from the Probate Court. Does this sound like a reasonable plan?

Q: This would be done only per guidance from the Probate Court. Does this sound like a reasonable plan?

A: An order from the court is an absolute essential here.

No. "Reverse order" from the way listed in the will will not satisfy the probate court. It is an arbitrary decision which will unduly hurt certain beneficiaries with no legal rationale behind it.

So, 1) what I hear you saying is that there is not, in law, a defined method as to the order in which specific bequests are liquidated, if need be. And, 2) I take it that when you say "generally, you should not sell specific bequests first" means it also is not defined in law but is a stronger rule of thumb that is more often accepted by the court.
My confussion comes from legal advice per "as the need arises to liquidate bequests to pays debts, that 1)) liquidate general before specific, 2)) then liquidate specific in the reverse order as listed in the will"

if i was a judge, this is my first thought.

1) i would ask each specific beneficiary if his specific asset had emotional value, or simply economic value, explaining to them that they would not lose out, financially.

2) if there was enough specific assets without emotional value, to pay off the remainder of the debts, i would order that those assets be sold, and then the other beneficiaries pay back those who had assets sold, on a pro-rata distribution. so in the end, each beneficiary would end up paying the same number of dollars to pay off the remainder of the bills.

Don't assume anything more than what I said. In CA, specific bequests are not to be sold before general bequest property. Although an assumption, I suspect it is the same in RI.

Your probate code will have some laws regarding the order of sale. They will help you in a general sense, but will not give you an answer. Your problem will be keeping from violating your fiduciary duties. You cannot favor one class of beneficiaries over the other. (income v. corpus) or one beneficiary over the other. (By making an easy sale of one beneficiaries bequest rather than part sale of two.) You must be careful you don't help yourself or those you care about more in the dealings. Fiduciary duties are many and, when you talk about selling things, you are at extreme risk of breaching them.

That is why the advice to see an attorney. If one of the beneficiaries even thinks he is getting hurt, you will be sued. And, you might very well lose if you don't come up with a fair and defensible plan. Such a plan requires experience you don't have. See someone who does. Even the consultation will help you defend yourself from suit. The attorney will probably recommend an expert to sell things rather than to do it yourself. Getting expert help is often a part of your fiduciary duties.

The law is not a book where you will look things up for an answer. Your situation is subtle and complex and has many factors which influence the result. You won't go to jail unless there is an intent to harm or cheat a beneficiary. You may get sued and have to pay damages, sometimes multiplied, if you make a small mistake.

Thank you, you are giving me good things to look at and research. Just for the record the estate and I, the executor, do have legal representation. After consultation, I had the understanding of "1st general, 2nd specific in reverse order" but after a request to the court, the judges's written comments turned my initial understanding inside out. That's why I'm seeking other points of view. I'm going to research so points you mention, then I'll be back.

Neill said:

What is the name of your state (only U.S. law)? Rhode Island

Will has been probated and I have been appointed executor. The estate expenses exceed the cash assets so that some of the will's gift/fixed assets need to be sold to meet expenses. Is there a specific required format to establish which gifts should be sold off first, second, etc. ?

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**A: heck, just send the gifts to us. Senior Judge always likes gifts.

HomeGuru said:

**A: heck, just send the gifts to us. Senior Judge always likes gifts.

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I'm not sure what that last gift you sent me was, but it escaped and killed three of my neighbor's goats.