Probate Sale

Definition

• A court supervised property sale that occurs after the owner passes away. Profits from the sale are divided among creditors and heirs as determined by the court.

Synonyms
estate liquidation, estate auction, estate sale

Related Terms and Acronyms

• Agreement of Sale (AOS) — Acronym,
  • A document in which a property's buyer and seller approve the price and other terms of the transfer of title.
• Bankruptcy (BK) — Acronym, Important,
  • A court action under the Federal Bankruptcy Code by which a debtor's debts may be discharged, usually by transferring assets to a trustee, or rescheduled.
• Bargain Sale — Definition,
  • Transfer of property or an item for less than market value.
• Estate Planning — Definition,
  • The process of determining how assets will be dispersed after an individual's death, ideally in the most tax-efficient way possible.
• Executor — Definition,
  • The person who manages the estate of a deceased individual.
• Fiduciary — Definition,
  • An individual, company, or association that manages assets for another party. Fiduciaries include executors of wills and estates, trustees, receivers in bankruptcy, and those responsible for managing the finances of a minor.
• Fiduciary Duty — Definition,
  • A requirement that someone in a position of trust, such as a banker, real-estate agent, or title agent, must act in good faith and trust on behalf of a client.
• Liquidation — Definition,
  • The practice of selling or redistributing some or all of a business's assets in order to repay debts or pay investors if the business becomes insolvent or is sold in full or in part.
  • To convert into cash.
  • To settle the outstanding debts by selling property.
• Probate — Definition,
  • The process of deciding the validity of a deceased person's will and appointing an executor.
• Sprinkling Provision — Definition,
  • A provision that gives a trustee the authority to distribute life insurance death benefits as he or she sees fit, and to those who need the money the most.
• Tax Sale — Definition,
  • A government sale of property to recover unpaid taxes.
• Will — Definition,
  • A document that states what must be done with a person's estate after his or her death.