Most probates are routine. But when a deadline is running and the court hasn’t yet appointed anyone, the estate can lose real value quickly. In a recent episode of Probate Weekly, Feldman Law Group founding attorney Aaron R. Feldman talked with host Bill Gross about what to do in those situations. Here are the key takeaways.
When Probate Can’t Wait
Special administration is a way to get limited court authority to handle one specific problem before a personal representative receives full letters. Often, that authority is to sell the house. The most common reasons families need it include:
- Reverse mortgages. After the borrower dies, there is roughly a six-month window to pay off the loan. Families often hire a probate attorney in month five or later. The lender will want probate filed and special administration powers in place.
- Mortgage defaults and unpaid property taxes. A conventional mortgage in default or pending tax liens can create the same financial pressure to act on the property.
- Occupied homes. If someone is living in the house, the estate may need to pay the mortgage while it goes through the legal eviction process, sometimes against a family member.
In these cases, an attorney may ask for special administration on an ex parte basis. That simply means it’s an emergency: the court hears the request within 24 to 72 hours and grants limited authority, not the full powers of a personal representative. The special administrator can’t distribute money, but may be able to sell a specific property.
Why Reverse Mortgages Are Time-Sensitive
A reverse mortgage keeps drawing on the home’s equity every day until it’s paid off, so every day of delay matters. Aaron also cautions against counting on lender extensions. In his experience, California lenders move quickly toward foreclosure, so families need to protect their rights early.
When Family Members Disagree
When more than one family member wants to be appointed, or there’s no will and no obvious choice, the court has to decide who gets authority, and that can take months. Courts increasingly appoint a neutral, licensed and bonded professional fiduciary as special administrator. That reduces the chances of future disputes, but it adds cost, because the fiduciary needs to be paid and may have their own attorney.
One approach Aaron describes to opposing heirs is to agree on what they can agree on: sell the house and put the proceeds in a blocked account that no one can touch. The other disputes can then be resolved without the pressure of foreclosure. In some cases, the parties agree on a fiduciary. In others, one petitioner is appointed special administrator with powers limited to selling the property.
Aaron also notes that in Alameda County, the court sometimes turns to attorneys who can serve as special administrator, which avoids paying for a separate fiduciary and a separate attorney.
The Real Cost of Delay
Aaron says people often underestimate what waiting costs. A home that sits empty still has property taxes, insurance and vacancy risk, plus lost interest on the money that would have come from a sale. He gave a rough example of about $4,000 a month in foregone interest on a $1 million property. A few months of delay can cost as much as the attorney’s fees people try to save.
Delays also come from the court system. Aaron says some Bay Area courts are setting initial hearings several months out, which can push a probate from 12 to 14 months to 18 to 20 months. Mistakes in notice or publication can lead to continuances. A republication can add at least six weeks, and depending on the county, a continuance can be much longer. Occupied homes can add more delay, and in one case, squatters in a vacant home started a fire and the estate ended up selling the property as a lot.
Property Taxes and Prop 19
Aaron also raised property taxes as a common surprise. In one example, a supplemental tax bill arrived a year after a trust distribution, and the family hadn’t set aside money for it. In another case he mentioned, a supplemental bill was about $30,000. Prop 19 now limits the parent-child property tax exclusion, so delays and poor planning can lead to reassessment. If you’re inheriting a home, it’s worth planning for supplemental tax bills before you distribute funds.
Key Takeaways
- A reverse mortgage payoff clock keeps running after death, so call a probate attorney early.
- Ex parte special administration can give limited, targeted authority, often to sell the house, before full letters issue.
- Opposing heirs can sometimes agree to sell and hold the proceeds in a blocked account while they resolve their disputes.
- Delay has a real cost: carrying costs, lost interest, vacancy risk and longer court timelines.
- Plan ahead for Prop 19 and reserve for supplemental tax bills.
Talk to a California Probate Attorney
Feldman Law Group focuses on probate and estate matters in the Bay Area and Northern California. If you’re dealing with a reverse mortgage deadline, a foreclosure, or a family dispute over a home, contact Feldman Law Group to schedule a consultation.
This article is for general information only and is not legal advice. Every situation is different. Prior results and examples described do not guarantee a similar outcome.