Selling an Inherited Property
Selling inherited property isn’t always straightforward, there are many things to consider and keep in mind. We’ll go over some of the main aspects of inherited properties that you should keep in mind if you are involved in the sale of one. Selling a home can be stressful enough on its own, adding in the potential complexities of inheritance can muddy the waters. We hope that this blog will help take some of the guesswork and stress out of your situation.
The Rightful Heir
Ideally, there will be a will that states a clear heir or heirs to the property. However, life can be far from ideal sometimes and it is quite common for someone to pass on without a will in place that clearly states the heir of the property. There may be multiple people who have claim on the property in the event that a will was not in place. Before any property can be sold the issue of whose property it is must first be addressed and resolved. If you have claim on a property, be sure to get a lawyer to help you sort out your rights.
If you are selling an inherited house, you’re going to have pay taxes on the sale. You can avoid paying these taxes if you take up residency in the home for a minimum of two years. Most people don’t do this, and they look to sell their inherited property as quickly as possible. There is a bit of good news when it comes to the taxes you’ll have to pay on selling an inherited home. Normally, home sellers must pay taxes on the original purchase price plus the added value to the home of any improvements made. This can be a considerable chunk of change. With the sale of inherited homes however, you will only have to pay tax on the value of the home in question at the time of the owner’s death. This difference can actually save you quite a bit of money!
Keeping Up With the Property
If you inherit a home, you need to keep up with it to ensure that you can sell it smoothly. This means taking care of the lawn and foliage around the house, cleaning the house up, making sure that the utilities are kept up with or cut off, and more. You should really purchase a vacant home insurance policy to protect the home you just inherited. If you make sure to keep up with the home and take care of it, you will have no issues selling your inherited home when the time comes.
We know that this is a lot to keep in mind, especially during what is probably a hard time dealing with the loss of a loved one. It is important though to ensure that the property is taken care of so you don’t lose money on your inherited home.