I Inherited Property. Now What Do I Do?
For advice and a free valuation, just ask us! We’re here to help you, not add to your challenges. A few minutes on the phone may make a world of difference in your stress load and peace of mind.
You lost a relative, who left you property. What should you do now? To avoid family disputes, headaches, and losing time, remember the following considerations.
OTHER RELATIVES INVOLVED
- Does any other relative have a stake in the property? What if you want to sell it, but your sister wants to rent it out, or live in it?
- In most states heirs who jointly inherit a home are “tenants in common,” and in such situations, one sibling can force the sale of a property. Before you go this route, consider the costs of attorneys, family relationships lost in an ugly dispute, and your time.
- It’s best to discuss the situation with relatives before doing anything. There may agreement, and there may be solutions you didn’t think of.
- Is there an estate tax due? Almost all states that charge this tax have high exemption levels, but it varies by state.
- Step up – The house you’re inheriting may not get a full step up to its current market value for tax purposes. Say your parents bought the house 40 years ago for $15,000, and today you can sell it for $500,000. With a step up, you’ll only have to pay capital gains tax on the difference between the home’s value at the time you inherited it and the sale price. Without any step up, you’ll pay tax on the full amount of the gain—in this case, $485,000.
- Is there an unpaid balance on the property?
- Is there a reverse mortgage on it?
- Reverse mortgages can’t be assumed by heirs. You can only assume your parents’ mortgage if you’re going to live in the house yourself.
- If you want to rent out the house, the bank may require you to refinance in your own name.
- If the home has a mortgage and you have the cash, pay it off. If not, the house will have to be sold to pay back the bank.
- Are repairs needed? What are the costs involved?
- Are upgrades appropriate? Appliances too old? Cabinets, counters, bathrooms outdated?
- Has the house been inspected recently?
- Is a thorough cleaning too much for you to do?
Want someone else to take care of the repairs, upgrades, and cleaning? Want money instead of work, time, and stress?
For advice and a free appraisal, just ask us! We’re here to help you, not add to your challenges. A few minutes on the phone may make a world of difference in your stress load and peace of mind.
Call Today (386) 585-9974