What Am I Supposed to Do after I’ve Inherited Property?
Inheritance is a delicate thing. The process can be frustrating at times, emotionally draining at others, and the government gets involved far too often than most people like to admit.
Who’s in the will? If there’s no will, this process gets complicated fast and there are many state-specific laws you must abide by. If there is a will, it might be to just one person (the principal beneficiary) or it could be to multiple people (tenants in common) if you’re the principal beneficiary, you get to make the decisions. If you’re not the only one, all tenants in common must agree in the outcome of the property.
What are my options?
- Refuse it. It might seem crazy, but sometimes inheriting property comes with too much-unwanted responsibility — an underwater mortgage, tax liens, maintenance, repairs or worse. If you’re going to end up paying out more than you’d make from selling, it may be worth refusing the inheritance altogether, especially if it doesn’t hold sentimental value.
- Live in it. Maybe you lived in the property yourself at one point and have good memories, being sentimental about a place is normal. You have the option to live in the property, yet keep in mind to stay up to date on things like taxes, insurance, maintenance, HOA, mortgage, etc.
- Rent it out. So long as the property is in good repair, you can offset some of the property taxes, Insurance, and mortgage costs. To rent it out, you will need to refinance the property in your name and keep the house in good condition.
- Sell it. Probate is the legal process that validates the will. Probate laws differ in every state but the process must happen pre-sale. Commonly the executor of the will is responsible for keeping the property safe and maintained during the legal process. Putting the house up for sale entails a whole new line of questioning about legal ramifications and readying it for the market.
- Repair, clean and stage your inherited property.
If Grandma hasn’t remodeled her bathroom since 1962, or the heating isn’t in working order, you’ll have to make some repairs and updates before you put the house on the market.
If all this is not a task you would want to take on, give us a call for your Best Home Solution and we will walk you through every step of the way. 480.332.2270