Selling inherited property is often a bit more complicated than selling a standard home. There is a web of regulations to navigate, but you can do this in no time with the right advice and expertise.
Here are some of the main steps you need to follow:
1) Check the Will
The first thing is to make sure that everything is done right on the legal side. Here is where the will comes in. A choice is a legally binding document that lists beneficiaries of the deceased’s estate.
Before executing the will, the documents also have the executor’s name or the person in charge of the deceased’s estate.
If the will explicitly provides for shared ownership of a given property, selling it will be way harder. Nonetheless, you will still need to apply for a grant of probate from the Probate Registry in your state.
But in cases where there is more than one executor, different states will have specific guidelines on how beneficiaries should sell the property. So make sure you follow each of them carefully.
2) Apply for Probate
Probate refers to the legal authority the will’s executor is granted to act on behalf of the deceased.
So, for this to happen, the executor will be granted access to the deceased’s estate, including their bank account, investments, and other things.
In most states, the probate is approved about six to eight weeks after the application is made. After that, the inheritance issues, including reading out the will and granting beneficiaries their dues, will take three to six months if there is no contestation.
3) Check All Tax Requirements
Regulations will subject the inherited property to an inheritance tax at the state and federal levels. However, there are certain exemptions.
For example, if the property is passed down to the deceased’s spouse or civil partner, no tax is required. The IRS will also exempt any property given to charity organizations from inheritance tax.
However, if the property is left to the children and the grandchildren, the inheritance tax will be relatively high. Additionally, the IRS may also subject the property to a capital gains tax if, indeed, you make a profit from it.
3) Get the Inherited Property Ready for Sale
Once you get the green light from your lawyers to proceed with the sale, it’s time to prepare the house for the market. Simple renovations on the property can go a long way in making it more appealing to potential buyers.
However, the nature of renovations often depends on why you want to sell the property. For example, there are certain cases where people just want a quick sale to offload the tax burden caused by the inheritance. In such a scenario, some light touches should do the trick.
People asking how I sell my inherited house in Memphis can always get additional help from real estate companies such as Favor Home Solutions.
These experts will give you additional tips on how to get this done fast.