Detailed Answer
When a New Hampshire estate needs to cover administration costs or achieve equal distributions among heirs, the personal representative (PR) has several options for disposing of personal property. Under N.H. Rev. Stat. Ann. (RSA) Chapter 553, the PR can sell items in the ordinary course of administration or seek court approval for sales outside normal business operations.
1. Sale in the Ordinary Course of Administration
RSA 553:12 allows the PR to sell personal property without court approval if the sale is part of routine asset management (e.g., vehicles, furniture, household goods). The PR must act in good faith and obtain reasonably fair market value.
2. Court-Approved Sale of Personal Property
For sales outside the ordinary course—such as antiques, artwork, jewelry, or collections—the PR must petition the probate court under RSA 553:21. The court reviews the petition, including appraisals and proposed terms. Once approved, the PR can proceed with a sale or auction. Detailed procedures are available at RSA 553 (Decedents’ Estates, Wills, Trusts).
3. Advertising and Auction Requirements
If the court orders a public auction, the PR typically must publish notice in a local newspaper and online (per court order) to attract competitive bids. Auctions may be conducted by a licensed auctioneer or via an online platform, ensuring transparency and maximizing sale proceeds.
4. Private Sale with Court Approval
Heirs may agree to a private sale. The PR files a joint petition under RSA 553:21 outlining the terms and confirming all interested parties consent. The court may approve a negotiated sale price without a public auction if it deems the transaction fair.
5. Equalizing Distributions
After sale proceeds are deposited into the estate account, administration expenses—such as funeral costs, taxes, and legal fees—are paid first (see RSA 556:8). Remaining funds are then distributed according to the will or statute. When specific items are sold to raise cash, proceeds help equalize shares among heirs who might otherwise receive items of unequal value.
6. Professional Appraisals
To support fair market value and satisfy court scrutiny, the PR should obtain one or more professional appraisals for high-value items. Documentation strengthens petitions and minimizes disputes among heirs.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Helpful Hints
- Review RSA 553:12–553:21 for procedures on personal property sales.
- Obtain written appraisals for items valued over $1,000 to justify sale prices.
- Consider an experienced auctioneer to maximize competitive bidding.
- File petitions early to avoid administration delays.
- Keep detailed records of notices, bids, and sale proceeds for court review.
- Communicate transparently with heirs to reduce conflicts.