Legal Question in Wills and Trusts in West Virginia

Re: Estate escrow funds

There is no statutory requirement for escrow of the proceeds of the sale of real estate. The seller, however is obligated to give a deed according to the terms of the contract of sale which usually includes a clause providing the title to be free and clear of liens and subject to financing. Escrow of the proceeds of sale pending closing of the estate is the usual means by which the real estate closing can occur prior to the closing of the estate. The loan can be closed, deed delivered and recorded and possession given to the purchaser. The estate could be closed immediately following the expiration of the time within which creditors may file claims against the estate which is 90 days following first publication. Of course the estate must be otherwise mature for settlement, that is claims that were filed paid or settled and assets administered. It is not unusual for a complicated estate to require more than 90 days after the publication to close. It is also not unusual for an uncomplicated estate to be closed immediately following the claim period. If the estate has been referred to a fiduciary commissioner, there may be a delay in processing and submission of the First and Final Accounting or Waiver of Administration to the county commission which causes the order closing the estate. There is a requirement that the fiduciary file an accounting of the first year's activity if the estate is not sooner closed as well as annual reports if the estate is open that long. The escrow should be held in an interest bearing account and released when the terms of the escrow agreement are met. Usually the escrow agreement is in letter form and calls upon the escrow agent to release the funds as soon as the a certified copy of the order closing the estate is provided to the escrow agent.