Sooner or later almost everyone will have the wonderful experience of being involved with cleaning out the home or possessions of a loved one. It may be as an executor, power of attorney, family member, friend, realtor, or just about anyone. If you’re lucky, you will only have to go through it once but chances are that it will be more. The process can be long or it can be quick and easy. However, most of the time it falls somewhere in between.
There are many layers that are a part of an estate “liquidation”-the legal part where a lawyer is involved with the role of dismantling the assets of the estate in accordance of the law, and then there is the process of selling or donating of the personal property items such as clothes, jewelry, baseball card collections, lawn mowers, etc. etc. The legal aspect of estate liquidations can be complex and complicated and should be presented by someone who is qualified in the field.
To make things clear, that is not me. I am not a lawyer nor do I want to delve into matters that go beyond me and the scope of this article. I am writing about the elimination through sale or donation of the personal property aspects-the shoes, the tv’s, the dishes, the furniture, etc. This is not to say that type of personal property definition does not have its own set of complex and complicated matters, it does. However, it doesn’t take the years of education and the knowledge of a lawyer to figure things out. Finding ways to resolve matters can be learned and figured out through experience and understanding. That, I do have and that will be the premise of this article moving forward.
To begin with, the first and most important part of cleaning out an estate, is preparation. If you’re lucky and the person of the estate is still alive you have the benefit of meeting with a lawyer and getting it all down on paper; the plan, the instructions, and all with the intentions of the person and with the legal aspects considered. The plan can then be registered and the appropriate parties can be informed so when the time comes you already have key components in place to move forward. The unfortunate reality however, is that is many people, and in my experience most people, don’t have anything to work from or they lose valuable time in search of such documents. At that point, you pretty much have to start from scratch. Meet with a lawyer that works with estates and get a plan together. Do not expect this to be a one and done meeting. You should be considering the lawyer as a part of your team to ensure that the process is done right and according to the law. This can save you a lot of time and avoid major chaos down the road if something goes awry.
It is also important to know that there are many things to be reckoned with when it comes to liquidating the personal property. Such things as taxes, inheritance, the people involved and who is in charge. Ignorance is not bliss when it comes to resolving an estate.
The next big thing to do is to not panic. Take a step back and breathe. This is going to be a process and take some time. If you try to move too fast that is when you will make bad decisions. It is also at this point you should try to reckon with the act that you do not have to do all of this alone; in fact, you shouldn’t do it alone. Family is not necessarily your best option. I have experienced on many occasions where well-intentioned families agreeing to all work together never talk to each other once it is all over; many times, that happens while they are still in the middle of the process. It is a very emotional and stressful time and everyone has their own way to deal with matters and does not always understand what other people’s process is which creates conflict. You think you will be saving money by the family doing everything themselves but in the end it most likely be costing you more; in time, money, and emotional energy. It is not uncommon for a family to undertake the job for themselves only to call in a service provider after a few days to turn the job over.
Put your expectations in check. Sure, your mom paid $3000 for her dining room hutch, you have the receipt to prove it. The reality is that you may only get $100 for it; or you may just have to donate it, or God forbid it goes to the dump. It doesn’t necessarily have anything to do with the condition. It doesn’t mean that it isn’t a nice piece of furniture and should be worth more, it just means that the people shopping for a dining room hutch are looking to find a great piece of furniture at a really great price. Your buyers aren’t going to care about what was paid for the item or any sentimental attachment you have, they just want a fantastic deal. Now remember that for every item you have in the estate. It can be a shocking slap in the face when the price in your head is not in the same universe as the price people will be willing to pay for it. It doesn’t mean that just because something is old makes it valuable. Just because something was popular 10 years ago and flying off the shelves (i.e.-Beanie Babies and Precious Moments), doesn’t mean that they are worth what sellers told you they were going to be worth. This is all very sad, but it is true. Prepare yourself for it and save yourself form the slap in the face.
To conclude this introductory to estate sales and cleanouts, you must take personal responsibility to become familiar with this process and its players. You are stepping into an arena of unfamiliarity and going up against people who are completely immersed in it. You don’t need to be an expert but it is important you understand at least the basic tenets of the process you will be undertaking. Don’t lose sight of the fact you could be dealing with a substantial amount of money and value and there are many vultures out there waiting to swoop in and take it away from you without you even realizing what just happened. They can sniff out you being overwhelmed and desperate and ready to just be done with it all from another planet. Just by knowing what the different roles are and being able to converse even minimally can help mitigate the knowledge gap and put the aggressor at bay. In my next blog article, I will talk about who the players are and define their roles.
In summary, here are the basic components to get started with:
- Connect with an estate lawyer (sooner than later) to review or prepare a plan.
- Don’t panic and remember that this is going to be a marathon, not a sprint. Slow and steady wins the race.
- Put your expectations in check. That blue mason jar you found in your mom’s cabinet is most likely not worth $1500. It is more likely to have been made in Georgia last year and is worth less than $5.
- Know who you will be dealing with. Is it an auctioneer or a reseller? Are you looking for a buy-out or a clean-out? How does consignment work?
This is all just a first step with many more steps to follow. No two estates are alike. Be patient and diligent, there are a lot of factors that are involved in estate sales and cleanouts and by not understanding the process you could be putting a lot of money and rightful closure in jeopardy.
In my efforts to educate and inform the readers, I will be creating a list a Case Studies that represent a real-life scenario that is consistent with the topic of a blog article.
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