Eazy Tips: 8 Tips For Dealing With Inherited Property
- September 13, 2021
Inheriting property might feel like you’ve won the lottery, but it’s much more complicated than that. It is a very sensitive issue. Beyond the circumstances surrounding the situation, it can create a huge burden on surviving heirs, irrespective of the kind of property inherited. Whether it’s a vast real estate empire or a modest single-family home, the stress, challenges, and responsibilities that come with inheriting property are inevitable. Hence, these are the critical steps heirs need to take when dealing with inherited property.
Take a Stand
It is important to come to terms with your newfound status as an heir, and decide if you would be accepting the inheritance. This is because uncertainty generally makes matters worse in these situations. Being indecisive for long periods is difficult, and can lead to underestimating the value of an estate. Take a stand, find out where the estate really stands, who really has ownership of different pieces of property, and get to understand the processes and timelines involved.
Involve Other Owners.
If you inherited the property with siblings, every decision regarding the property has to be unanimous. If one sibling wants the property, he or she can buy it from the other siblings. Otherwise, you can sell or rent the property and split the profits. If there is a dispute among siblings, you can try professional mediation. In mediation, the disputing parties engage the services of a neutral third party to help them with a legally binding agreement that all concerned parties agree on. The disputing parties can control the process and they have a chance to explain their perspectives and feelings. If you go to court, the judge will likely order the house to be sold so the profits can be split.
Understand Title and Debts
Those new to real estate ownership and rights can find them very confusing. Inheriting a piece of property isn’t as straightforward as you would think. There can be multiple owners, multiple mortgages, housing associations, and other liens involved. With research, you can help identify these items, and provide more clarity.
Get an Accurate Property Evaluation
It is often misleading to believe that “the market value of a property is what someone is willing to pay for it.” Therefore, speak with at least several local property professionals, or even consult a local appraiser to get a more accurate idea of what any real estate might be worth. You don’t want to be sitting on it for months or years because you have it drastically overpriced.
Learn About Taxes
Taxes can wreak havoc on inheritances if not accounted for. There can be sizable estate taxes when succession occurs. Other tax debts may also need to be settled in the process, and there can be increased taxes for the recipient as well. Talk to a tax pro and find out what the liabilities are and how to minimize them in advance.
Weigh Your Selling Options
There is more than one way to sell an inherited property. The best choice really comes down to selling the home to expert real estate investors for cash who have experience with inherited property. This is better recommended when there are multiple properties involved. Those that have experience in this area may even cover many of the costs involved in selling, and can often help with additional services to make the entire process a lot easier.
One of the major burdens of dealing with inheriting a modest single-family home is sorting all of the stuff. Often a lifetime of things has been accumulated and just needs going through. There can be family heirlooms and treasures to be discovered, but often lots of items only have sentimental value as opposed to financial value. Be that as it may, you don’t want to accidentally give away a priceless piece of art, or waste items that others might desperately need. A little professional help can be useful with moving, organizing garage sales or putting items for sale online, or shipping off donations to charities.
Carry Out Your Own Estate Planning In Advance
This is by far the perfect time to revisit or begin your own estate planning. Don’t wait for “the perfect moment.” It may never come. Now, the knowledge and experience will be fresh in your mind, and you’ll know some of the things you can do to make it easier for your spouse and the next generation when it is their turn. Perhaps you need to start a trust or write a will. Maybe you even need to use the proceeds of this inheritance to invest in your real estate education and start investing to build up a legacy of your own. Whatever the case may be, ensure you do what’s best for you and your loved ones.
To wrap it up, a lot of people wish for and want inherited property because it could relieve them of so many burdens, not to mention it is also a gift and legacy to remember a loved one by. Unfortunately, not everyone gets to inherit property, but if you do find yourself on the receiving end of one, we implore you to adopt these steps whilst dealing with the inheritance – and everything else that comes with it, including but not restricted to, stress, responsibilities, and often times scandals and drama.