Handling an Inherited Property
Inheriting a property from a loved one can bring with it a lot of complicated emotions and decisions.
Do you keep it in the family or sell it? If you choose the latter, there are a number of factors to consider before moving forward.
If the property is in probate, there will be a legal proceeding to determine how assets of the estate are handled - and that could take a while. If not, you may be able to move forward with listing the home. Beyond that, you should also take into account the following thoughts.
1. Potential Taxes
When you sell a property, you’ll typically owe capital gains taxes unless you’re immediately using the money in a similar investment. Make sure to talk with your accountant for all the precise details.
2. Remaining Loans
Do any loans exist against the property? This might mean traditional mortgage loans, home equity loans, lines of credit, or reverse mortgages. Any of these will likely lead to forfeiting a portion of your sale proceeds to a lender.
3. Belongings in the Home
If your loved one left behind a lot of belongings - with no plan for them, you’ll need to sort out how to handle it. Will you divide them among family members, host an estate sale, or donate them to a local charity?
4. Repairs and Renovations
Take the home’s condition into consideration. If it’s in disrepair or has not been properly maintained, you may need to invest some money in updates before listing it. Consider having a home inspection done to gauge the home’s condition.
Also, talk with your lawyer about any other questions, and please reach out to us, if you need help handling a sale.
