Losing a loved one is never easy. Aside from dealing with a loss, you might also have to decide what to do with their items passed down to you. One of those items can be their house or rental properties.
Inheriting a property can sometimes be more troublesome than expected and might end up costing you money. Before you start to search “sell my inherited house” on your phone, here is what you should know about inheriting a property.
What does it mean to inherit a property?
The term “inheritance” is the process of when a person hands down an item to their friends or family after they have passed away. This makes the person the new owner. Some common things that are inherited are jewelry, cars or houses.
Three ways to inherit a property
Before you can do anything with the property you have inherited, you need to determine how it was passed down to you. Did you get it through a deed, will, or trust? How you inherited the property will make a difference when trying to sell the property. Here are three ways to inherit property.
Inherited by a deed
To inherit a house by a deed means you are the remainderman, which means you become the owner after it has been transferred. The title of the property is in your name, so there should be no issues when trying to sell the property.
Inherited by a will
To inherit property by a will means the owner left you the property, but the ownership of the property is not officially transferred. You need to go through a probate process, which is a court-supervised process that authenticates the last will. This process will put your name on the property title.
Inherited by a trust
To inherit property by a trust agreement means that person passed down the property directly to you and/or other co-owners. You would need to go through a probate process if the deceased person had a wife or children to get your name on the title.
What should you know about inheriting a property?
Inherited property is far from a “free” property. You might have to make payments on the house like inheritance tax and mortgage payments.
If the house you inherited has a mortgage, you or the family of the deceased can pay the mortgage. The mortgage servicer can foreclose the house if the payments are not made.
Aside from the mortgage, you will have to pay inheritance taxes. This is a tax that is imposed on those that inherited a property. The tax rate that you will have to pay depends on the state that you live in, the value of the house and your relationship with the deceased person.
How to sell an inherited property fast
Have you decided that you want to sell your inherited property? One of the easiest and fastest ways is by selling your home for cash to a company that buys houses. These companies will buy the inherited property as-is and give you a fair cash offer for it. Selling your home for cash is a fast process, so you do not have to worry about having to make a mortgage payment.
Need to sell my inherited house?
Contact Best Price Homebuyers! Our team can make selling your inherited property simple and easy! Request your cash offer here!