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"If everything about real estate has changed, why are we still selling homes the same old way?"

The All Montana Team at Montana Real Estate Associates has a broad and diverse background with experience to be able to speak to and expertly guide you through the selling or buying process. Most of our Innovative Strategies page reflects our unique take on how to best protect yourself and your assets related to real estate acquisition and disposition in the most challenging of circumstance. Click on any of the links below to jump to your preferred subject. 

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Probate

While both probate and successor trustee sales are both the result of the passing of the owner, they are significantly different in their execution. 

Probate

Probate is the process of liquidating an estate where the previous owner did not identify an heir prior to passing. Probate is a necessary legal process to disperse the assets of a deceased person’s estate. It is often complicated and time-consuming. Heirs and other interested parties should know the basics about how probate works in Montana.

Unless the estate is in a living trust, it will need to go through probate in Montana. However, it may be eligible for informal probate, which allows for the executor to handle all of the processes without court intervention. All that is necessary is an affidavit to be presented to the court, but the estate must be worth less than $50,000. Formal probate is lengthier and more complex, but it also has two categories: supervised and unsupervised. With supervised probate, the court will oversee all actions of the executor.

Selling a home in probate is not quick, easy or inexpensive, which is why it pays to plan ahead. The approval process prior to listing and once an offer takes place can be 30-45 days and the whole process needs to be completed within 2 years of the date of death. Our team knows the probate process. We can work with your designated attorney to take as much of the burden off the exectutors shoulders as possible in this very difficult time. 

Trust Disposition

Wondering what the alternative to an expensive probate dissolution might be? Revocable Living Trust is the answer in most cases. 

Trust

A trust is a legal structure, similar to a will. The will used to be the primary estate  planning  document, but  with the  advent  of  various forms  of  nonprobate  transfers, it  has  declined in importance.   Through the  use  of  joint  tenancy and  beneficiary  designations,  it may be  possible  to  completely  bypass  probate. In such a case, the will may have  no purpose.  

 
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The  revocable  trust  been part  of  this  evolution toward  non-probate  transfers,  particularly  in  states  with  difficult probate  systems. Where  the  will  once  was  the  central  point through  which  testamentary  transfers  had  to  pass,  now  testamentary  transfers  may  be directed  by  a variety  of  non-probate means.  Trying  to coordinate  all  these  different  forms  of testamentary  transfers  should be  an increasingly  important  function of  revocable  trusts. 

If you find yourself the Successor Trustee of a Living Trust, the All Montana Team is well versed in the differences between a trust sale and a traditional residential transaction. The disclosures, documents and processes vary depending on how complex the trust presents. We understand where we need to involve your attorney and where we can step in and save you time and money through the disposition of the decedents property. 

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1031 Exchange

If you’re a real estate investor, the 1031 exchange—which gets its name from Section 1031 of the U.S. Internal Revenue Code—is your best friend!

Why? Because for about 100 years, the 1031 exchange has allowed real estate investors the chance to reinvest the profits from the sale of a property without having to pay capital gains tax. As long as you replace one investment property with another and follow all the rules set by Uncle Sam (we’ll get to all of those in a minute), you can keep kicking that tax bill down the road. Sound complicated? It can be. 

In any 1031 Exchange, the players differ from those in a traditional transaction. So are the terms associated. As an investor you will want to employ your tax consultant, an accomodator, and your real estate team. You will also want to be thinking about where you will be re-investing your money to take advantage of the beautiful tax deferral that is the main driver of this type of transaction. The sale works virtually the same, but once you have an escrow, you will be able to define your 'Boot' figure, which will determine how much you purchase your next property or properties from the proceeds of your current asset. Other important factors in a 1031 exchange are timeframes and selecting your accomodator. The All Montana Team can help you plan for a successful transaction

Short Sale

Potentially losing a property for whatever reason is hard. So hard that it can be compared to the grief process, starting with denial, anger, barganing, depression and finally acceptance. If you have gotten your Notice of Sale and are just coming to that acceptance, you still have the ability to take advantage of the ability to short sale a home.

 

Short Sale

A short sale means that your house is not worth more than the liabilities and closing costs would be in a market value transaction. That doesn't mean you are out of options to protect your family. 

 
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The short sale process can be challenging for sellers. The unknowns and requirement to pick up and move everything in your life is a daunting prospect. Through out the 2007 market crash, the All Montana Team transacted over 400 short sales in a three year period. 98% were effectively transacted with the bank's approval on the purchase price. We have professional negotiators interface with your banking instution to submit and approve the purchase agreement. This is a time consuming process, and the process to stop the foreclosure can be potentially drawn out. As soon as you come to acceptance that the sale of the asset is the only way to keep a foreclosure off your credit record, you need to move quickly. All Montana can do a lot with a little time, but there is such thing as the point of no return where the process is too far along to stop or influence the outcome.  

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Buy Real Estate in your IRA

Ever wanted to buy your retirement home at today's prices but all your capital is tied up in your IRA? It is entirely possible to purchase property in your IRA if you follow some very specific rules and hire the right folks.

IRA Purchases

Purchasing your retirement home in your IRA is completely possible, but the rules are fairly strict, both in the purchase transaction and in how the property is used once your IRA is the titled owner. 

Purchasing property in your IRA starts with a self-directed IRA. Your typical Fund Manager will not be able to perform this function for you. You can transfer out eligible funds to a self directed IRA or transfer a legacy account from a previous employer. IMPORTANT THINGS TO CONSIDER when you purchase in your IRA. 1) down payment must come from the IRA, 2) you can not use the property yourself until it is distributed as an asset in retirement*, 3) all income from the property must be paid to the IRA like income from a mutual fund invested in by your IRA. 

*The IRS makes the rules on the use of the property. You, your children, parents and spouse may NOT use the property in any way. These are considered your family members. The IRS does not consider your brothers, sisters, aunts, uncles or cousins family and can use the property. The main caveat of all IRA purchases is that the IRS treats your IRA as a beneficiary - an individual that you owe a duty to care for and protect. Failure to follow the laws can result in dis-allowal of the investment, a demand for tax payment for early withdrawl, or other significant consequences. All Montana has a list of self directed IRA companies to get you started. 

The first step is always your Equity Analysis or Prequalification.

Contact us today to schedule an appointment