When a loved one passes away, it’s not uncommon for a family member to begin taking care of things. Mowing the lawn, paying the utility bills, covering the property taxes or mortgage, and maintaining the home, are a labor of love, for many. However, there are others who do so assuming these actions will help secure a claim to the property. But do they?
The short answer is: not necessarily.
Paying Expenses Doesn’t Equal Ownership
While it may seem like covering the expenses related to a deceased person’s property gives you legal ownership, it doesn’t. Ownership of any assets left behind, including real estate, remains with the estate until the proper legal process is followed.
Probate decides ownership. So what is probate? It is the court-supervised process of identifying and gathering a deceased person’s assets, paying debts and taxes, and distributing what remains to the rightful heirs or beneficiaries. Until a court has transferred title through probate, the property legally belongs to the estate, not to the person paying the bills.
“It’s not uncommon for us to speak with a family member or friend who thought they would automatically get ownership of the property,” said Roberto Seda, with Seda Law Firm. “Some of them have been paying for years. Unfortunately, they may or may not get their money back through probate. As a result, we end up having to be the bearer of bad news.”
Note: If the deceased person’s property is in a revocable living trust probate can likely be avoided. Trust documents typically outline who was to inherit the property.
Why This Matters
It’s easy to assume that paying property taxes or making mortgage payments give you legal claim to the home. While these efforts can certainly be taken into consideration, particularly when there are disputes among heirs, they do not substitute for legal title.
In cases where the property was not placed in a trust, transferred via a beneficiary deed, or co-owned with rights of survivorship, then probate is usually required to formally transfer ownership out of the deceased person’s name.
This is especially true for Oklahoma families with mineral interests. Oil, gas, and mineral rights pass through probate just like real estate — and if they were never properly included in an estate plan, they may still be listed in the name of someone who has passed away.
[Click here to Learn more about what Oklahoma families with mineral interests need to know about estate planning.]
What You Can Do
If you find yourself maintaining or paying for a loved one’s property after their death, here are a few important steps to take:
- Speak with a probate attorney. The sooner you get legal guidance, the more smoothly things can proceed. An attorney can help you navigate the process.
- Document all expenses. If you’ve been paying property taxes, mortgage payments, or repair costs, keep detailed records. These may be reimbursable through the estate, depending on the situation.
- Initiate probate (if it hasn’t been done yet). In most cases, no one can legally sell, rent, or take title to the property until probate is complete. Even if you’re the closest family member or named in the will, the property must still go through probate.
- Avoid making assumptions about your rights. Even if you’ve been living in the home or maintaining it, that alone does not give you legal ownership.
While it’s admirable, and often necessary, for someone to step in and handle the responsibilities of a loved one’s property, doing so doesn’t gain you any automatic rights to the property. Ultimately, only probate decides ownership and enables the transfer of ownership from the estate to the rightful heir or beneficiary.
If you’ve been managing a property after a family member’s death and aren’t sure where you stand, now is the time to get clarity. At Seda Law Firm, our team is experienced in probate matters and is here to help you to understand your rights, responsibilities, and options moving forward. We offer a FREE 15-minute Discovery Call to those who are wanting to explore their options. Contact our team today to schedule yours!