Detailed Answer
To bring real property into an Idaho estate to pay creditor claims, follow these steps:
- Open a probate case. File a petition for letters testamentary (if there’s a will) or letters of administration (if there’s no will) in the district court of the decedent’s county of residence. The court appoints a personal representative to manage estate assets.
- Give notice to creditors. Under Idaho Code § 15-3-801, publish a notice in a local newspaper and send direct notice to known creditors. Creditors generally have four months to file claims.
- Inventory and appraise real property. Within 90 days of appointment, the personal representative must file an inventory listing all estate assets with fair market values. See Idaho Code § 15-3-806. This includes each parcel of real estate.
- Petition the court to sell real estate. If the estate lacks cash to pay valid claims, petition the court for authority to sell real property under Idaho Code § 15-3-804. The court will set sale terms and may require competitive bidding or a public auction.
- Complete the sale. Conduct the sale in accordance with the court’s order. After accepting the highest bid, return to court to confirm the sale and get an order directing distribution of proceeds.
- Pay claims and expenses. Use the sale proceeds first to pay administrative costs (filing fees, appraisal fees, attorney fees) and then creditor claims by priority per Idaho Code § 15-3-1001 et seq. Distribute any remaining funds to heirs or beneficiaries.
- Close the estate. File a final accounting and petition for discharge once assets are distributed and claims are satisfied. The court will issue an order closing the estate and discharging the personal representative.
Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Helpful Hints
- File the probate petition in the decedent’s county of residence.
- Gather deeds, title records, and mortgage statements early.
- Obtain at least two independent appraisals for each parcel.
- Keep detailed records of notices sent, receipts received, and communications.
- Consult a probate attorney if disputes or complex assets arise.