I Inherited a House Now What?
So, you inherited a home and you don’t know what to do with it? No worries, we can help you understand what your options are!
Unfortunately sometimes the reasons for inheriting a home are quite tragic and for that, we are sorry for your loss.
If you have been given the title of beneficiary, specifically with a house, you may be thinking “I inherited a house now what?” and that is completely normal.
We have made a list of the next four steps after inheriting a house to help guide you forward!
- Understand the taxes
- Check mortgage status of the property
- Discuss options with other beneficiaries (if any)
- Get the house assessed
I Inherited a House Now What?
Once you have inherited a house, there are a few options to consider.
If you are not the only beneficiary under the house, you will need to discuss all options amongst all beneficiaries.
The Next Four Steps:
1. Understand the Taxes
The first thing you should do after you ask yourself, “I inherited a house now what?” is to look into the taxes.
When the house was bought, it was most likely cheaper than today’s value. If you decide to sell it now at a higher price, you will have to consider the taxes owed on the difference.
If you sell it at a higher price than the original value you will be required to pay capital gains tax of the property based on the difference.
It is possible that your capital gains tax payment will be the full amount of the gain.
If this is the case, you should retain the services of a tax attorney who specializes in estate tax law to assist you with the complex paperwork involved.
2. Check Mortgage Status of the Property
The second step is to investigate the mortgage status of the property. That is, are there still mortgage payments to be made on the house?
If you’re lucky, the answer is no and there isn’t anything additional to worry about.
But, if the answer is yes, it is important that you research all the implications of a house with a mortgage.
If you want to become a landlord you may be required by the lender to refinance the house in your own name prior to renting out the property.
The best option, if you can afford it, is to pay off the mortgage.
If you cannot afford the mortgage on the house, it will then have to be sold to pay back the lender.
3. Discuss Options with other Beneficiaries (if any)
Are you the only one wondering, “I inherited a house now what?”?
If you are not the only beneficiary to inherit the house, it is important that you all sit down and discuss the best way to approach the inheritance.
In some cases one of the beneficiaries may be able to buy off the other beneficiaries.
Any arrangement made among all beneficiaries will need to be in writing, regardless of the relationships. This will avoid any legal issues down the road.
4. Get the House Assessed
The last step to take after asking yourself, “I inherited a house now what?” is to get the house assessed.
It is important for your safety and the safety of others to understand the conditions of the house. An assessment will allow you to be aware of any necessary updates or maintenance required.
An assessment will also allow you to understand if the house is in livable conditions which determines if it can be sold or rented out.
After walking through these four steps, assess your personal situation and continue doing further research or having further discussions with the other beneficiaries to understand what is your best option.
It can be difficult finding yourself in the situation of “I inherited a house now what?” but we hope that these next four steps help you move forward with the process at your own pace.
If you are living in Southern California and have decided that it’s time to sell the house and you’re thinking “I want to sell my house fast ,” you’re in luck!
Thanks for reading our article: I Inherited a House Now What?