The Trials of Administering a Hoarder’s Estate

Administering_Hoarder_Estate

Suppose when your great uncle Jim died you did not know you were appointed executor of his estate or that he was a hoarder. You had heard of hoarding as a national problem and maybe even listened to the television series. If you found yourself in this situation or it might occur in the future, what information should you know and how should you handle it? Here are some tips adapted from a blog published by a national law firm that might get you started along with some comments of my own. See “Administering a Hoarder’s Estate: What You Should Know,” https://www.katznerlawgroup.com/administering-a-hoarders-estate/ by Gabriel Katzner, Esq., a New York attorney.

“First, decide if you should accept the job…” Katzner notes “<i>f you live in another city or have overwhelming family responsibilities, think twice about administering a hoarder’s estate.” He goes on “cleaning out the home, locating property, and getting the location ready for sale will involve more time and effort than you might estimate…” I would agree and would add this applies not only to persons living at a distance but those nearby as well. It is remarkable how many homes remain unsold, sometimes for extended periods of time, when well-meaning family members and friends expect to be able to clear out the house over several weekends. The work can become drudgery and can seriously interfere with the ability to settle an estate. If you want to know how to get help, read on.

Next the blog notes “<t>he personal representative must identify all the deceased person’s money and property and gather them for safekeeping.” That is quite a job! The commentary goes on to state the trust or will (if there is one) might identify certain property to go to certain individuals and the personal representative or executor needs to locate and identify such property and take steps to pass it on to the rightful beneficiaries. In my experience I would add one of the first things to look for is a Will. It might be under a pile of papers, or clothes or personal belongings. When reviewing the property after you visit this website, the executor or personal representative would also be preparing an inventory of cash or valuables. You can and probably should take photos before and after to document the progress of your work, especially to demonstrate the amount of time and effort it takes and the cost and note important articles. Take heart. This is doable. If you are patient and organized it really helps.

“Resist the temptation to simply throw everything away.” Most of us have heard stories of valuables found in trash and in unlikely places. This does take sorting both so you keep the items that are valuable for their origin, workmanship or sentimental value and those that are not and need to be tossed. Dumpsters are useful. I recommend moving to the side those things that are to be kept or reviewed further, separating them from others that need to be discarded.

“Consider getting help.” I would absolutely recommend you get help if you want to finish in a reasonable time. It is easy to become discouraged. What often stops family members in their tracks is the fear they will toss something of value to someone. This fear even sometimes stops people from bringing in professionals experienced in cleanouts. Our office has dealt with some outfits who know how to be sensitive to these concerns.

“Determine the fair market value of any apparently valuable items that you locate.” You might hire an appraiser or auctioneer with experience. This could prevent your overvaluing or undervaluing property for tax purposes.

“Document the condition of the property and the time you spend sorting and cleaning.” The documentation can be important both to make a record of your time and involvement to be paid, where applicable, and to establish a deduction for inheritance tax purposes. If you have special expertise note this too.

“Get estimates and make repairs.” Hoarding can result in damage to the property.

“Charge expenses to the estate

Above all else, keep your sense of perspective and your sense of humor!

About the Author Janet Colliton

Esquire, Colliton Law Associates, P.C. Janet Colliton has practiced law for over 38 years, 37 of them in Chester County, Pennsylvania, a suburb of Philadelphia. Her practice, Colliton Law Associates, PC, is limited to elder law, Medicaid, including advice, applications and appeals, and other benefits planning including Veterans benefits, life care and special needs planning, guardianships, retirement, and estate planning and administration.

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