Selling a Co-Owned Property in Indiana to Cover Funeral and Property Taxes — FAQ

This FAQ explains, in plain language, how someone in Indiana can sell a co-owned property to pay for funeral costs and property taxes. It covers ownership types, voluntary sale options, how to force a sale if co-owners disagree, the role of probate, and where taxes and funeral bills fit into the payment order. This is educational only and not legal advice.

Detailed Answer — How the process works in Indiana

Short answer: First determine how the property is owned. If all owners agree, you can sell jointly and split proceeds (after paying mortgage, taxes, and funeral/estate obligations). If one owner won’t agree, you may need a court-ordered partition sale. If a co-owner died, you may need probate or an estate representative to clear or sell the deceased owner’s share. Throughout, unpaid property taxes and certain estate obligations (including reasonable funeral expenses) will need to be addressed before distributing sale proceeds. Below are step-by-step actions and the legal tools commonly used in Indiana.

1. Identify how title is held

Obtain a copy of the deed from the county recorder or online. Look for words like “joint tenants with right of survivorship,” “tenants in common,” or ownership by a trust. Basic effects:

Joint tenants with right of survivorship: When one owner dies, their share usually passes automatically to the surviving joint owner(s) and does not go through probate.
Tenants in common: Each owner has a divisible share that passes under their will or by intestacy and may require probate to transfer a deceased owner’s share.

2. If all co-owners agree to sell

Steps are straightforward:

List the property and obtain buyer offers.
Open an escrow or closing account and identify lienholders (mortgages, tax liens).
Pay off mortgage(s), county property taxes, and any other liens from sale proceeds at closing.
If the sale must cover funeral expenses, the estate (or the decedent’s share) should reimburse reasonable funeral bills as a priority claim if the decedent’s assets go through probate. If the property sale proceeds are from jointly owned property that did not pass through probate, treat funeral bills as a claim against the estate portion or seek agreement from co-owners.

3. If a co-owner is deceased

If the deceased person owned a share as a tenant in common, their share typically becomes part of their estate. The personal representative (executor/administrator) appointed by the probate court handles selling or transferring that share during estate administration. Probate matters fall under Indiana probate law (Title 29). See Indiana Code, Title 29: https://iga.in.gov/legislative/laws/2024/ic/titles/029.

4. If co-owners disagree: Partition action

If one or more owners refuse to sell, any co-owner can file a partition action in civil court to divide or sell the property. Indiana law governs partition actions under the statutes for partition of real property. The court can order a physical division when practicable or a sale and divide proceeds among the owners according to their shares. See Indiana Code, Title 32, chapter 17 (Partition): https://iga.in.gov/legislative/laws/2024/ic/titles/032#32-17.

5. How funeral expenses and taxes get paid

Funeral expenses are generally a priority claim against the decedent’s probate estate. The personal representative uses estate assets to pay reasonable funeral costs before distributing assets to heirs and beneficiaries. If the decedent’s interest in the property passed outside probate (for example, by survivorship), funeral costs are not automatically paid from that interest unless co-owners or the surviving owner agree.

Property taxes are secured by the property and typically must be paid at closing when the property sells. If taxes are unpaid, the county can place a lien and eventually enforce collection. Indiana’s property tax law is in Title 6. See: https://iga.in.gov/legislative/laws/2024/ic/titles/006.

6. Combining probate and sale to pay funeral/taxes

Common approaches:

If the deceased’s share is in probate, the personal representative can seek court authority to sell real property (or the deceased’s interest) to pay funeral bills, taxes, and other claims under probate procedures.
If the property is jointly owned with survivorship, surviving co-owners hold title and may sell; proceeds pay liens and taxes first. Co-owners should voluntarily agree to contribute toward funeral expenses or treat them as a claim against the estate’s other assets.
If co-owners disagree, a partition action can yield a court-ordered sale, and the court will direct payment of liens and then divide net proceeds according to ownership shares. If the deceased’s share must go through probate, coordinate the partition with the probate proceedings so creditors (including funeral providers) receive due notice.

7. Practical timeline and costs

A voluntary sale can close in 30–60 days (or faster with cash buyers). A partition action or sale through probate may take several months to over a year depending on court schedules, creditor claims, disputes, and title issues. Expect court filing fees, attorney fees, title company or escrow fees, and possible appraisal or partition sale costs. Partition litigation tends to be costlier than a consensual sale.

8. Who should handle the sale and funds?

Use an experienced real estate closing agent or title company. If the sale is part of probate, the personal representative or the court will typically direct the closing. If the sale follows a partition judgment, the court or a court-appointed commissioner will handle the sale. Always ensure liens and taxes are paid from the closing proceeds before distribution.

Key Indiana legal references

Partition of real property: Indiana Code, Title 32 (Chapter 17): https://iga.in.gov/legislative/laws/2024/ic/titles/032#32-17
Probate and administration of estates: Indiana Code, Title 29: https://iga.in.gov/legislative/laws/2024/ic/titles/029
Property tax law (liens, collection): Indiana Code, Title 6: https://iga.in.gov/legislative/laws/2024/ic/titles/006

Helpful Hints

Start by getting a certified copy of the deed and any recent title report. That alone answers many questions about ownership rights.
Contact the county treasurer or auditor to learn about overdue property taxes and tax liens. Paying taxes promptly avoids interest, penalties, or foreclosure.
If a co-owner died, ask the probate court whether an estate administration is open and who is the personal representative. That person has authority to act for the estate.
Try a voluntary solution first: a written agreement among co-owners to sell and divide proceeds reduces time and cost.
If you must litigate, expect legal fees and the court to order an appraisal. Partition sales sometimes yield a lower net proceeds than voluntary sales.
Keep records of funeral bills and vendor contracts. If the estate must pay funeral costs, clear documentation helps the personal representative make claims and pay properly.
Consider short-term options if immediate cash is needed (e.g., bridge loan, personal loan from co-owners), but weigh interest costs and risks of secured loans against selling the property.
Consult a local Indiana real estate attorney or probate attorney early if ownership is unclear, if a co-owner objects, or if estate assets are limited.

When to get a lawyer: If co-owners disagree, if title is unclear, if probate is pending, if tax liens exist, or if you need a partition — get legal help. A lawyer can advise on whether to open probate, how to structure a sale, and how to protect your share.

Resources: For the full text of relevant Indiana statutes, see Title 32 (property partition), Title 29 (probate), and Title 6 (taxation) at the Indiana General Assembly website: https://iga.in.gov.