Personal representatives have a big job when it comes handling estate assets during probate. At all times, the personal representatives are expected to act in the best interests of the estate. In doing so, though, a personal representative may find that some estate assets require more attention than others. Consider the following special assets:
Business Interests: A business generally has to remain in operation to retain its value. Personal representatives may oversee a company until probate is over.
Real Property: Commercial and residential property can be costly to maintain, especially if the property is vacant. Personal representatives may turn such property into income producers. Selling it to avoid the expenses of maintenance and insurance or to prevent damages also may be a viable option.
Investments: In a lengthy probate, investment strategies may change to meet market conditions. Failing to properly manage investments could lead to dramatic decrease in value.
Vehicles: Depreciation is an issue with vehicles, including cars, trucks, recreational vehicles, aircraft, and boats. Maintenance, registration, and insurance expenses may build up during a lengthy probate proceeding.
Wine Collections: Climate-controlled rooms may be required to prevent spoilage.
Animals: Horses, show dogs, and livestock need to be fed and cared for during probate. Other costs may include insurance, housing, training, and travel.
Sometimes the cost of managing an asset may be harmful to the estate itself. In that case, assets may be sold or otherwise disposed of to protect the overall estate. However, assets like the ones mentioned above may be difficult to appraise and sell.
Transferring valuable assets to a trust may be a great way to handle property without passing it through probate. Even then, however, a trustee will be managing the assets with the best interests of the beneficiaries in mind.