Saying goodbye to a loved one is a difficult journey of emotional challenges. You hold tight to the memories you have with them. Perhaps, it’s the occasion to frame an old family photo and place it on the mantelpiece.
But losing someone dear also comes with new responsibilities, especially if you discover that you are to inherit their home. Property inheritance can be stressful, especially when you are dealing with the emotional aftermath of mourning. But, here are some practical tips to help you figure out how to best manage property inheritance. There’s one important question you need to ask yourself: What do you want to do with the property?
You don’t have to keep it
You might be obligated to keep property even though you don’t know what to do with it. But you need to give yourself the time to understand how you feel about it. It is okay to say no to the inheritance if you don’t want to burden yourself with additional stress. Reducing your stress levels is also going to help you healthily deal with grief. There’s no need to force yourself to go through real estate planning and maintenance if you hate doing those things. So, it’s understandable to want to get rid of the property as soon as possible. You can save yourself a lot of hassle by reaching out to agencies that can arrange for fair and rapid transactions. If you are looking for trustworthy cash home buyers, contact BestOfferKC.com for instance, as these agencies are specialized in rapid and realistic evaluations.
Paying inheritance real estate tax
If you’ve never inherited property before, you may be worried about paying real estate tax on the property. Thankfully, the majority of people who inherit real estate don’t need to pay any taxes on the house. There are 12 different tax brackets when it comes to real estate. However, all Americans are authorized by law to exclude a number of assets from their taxable estate. This is called the lifetime exemption. As of 2020, this amount is $11.58 million per person.
Renting your inherited property
One of the most common decisions when it comes to inherited real estate you can’t bear to sell is to rent it out, as per Homeguides.SFGates.com. In terms of taxes, this can be advantageous as you can deduct your maintenance, and insurance costs. It can be a good idea to reach out to an expert accountant to gain a better understanding of what your deductibles are, and how to assess eventual capital gains. Yet, you can turn the rental profit into a source of secondary income for your family.
Putting it on the market to sell on your own time
Last but not least, you can turn the property into a house-flipping investment. Indeed, you can use it as a DIY project to add value to the property. The typical house-flipper increases the house’s value before putting it back on the market. The idea is to sell for a profit to recover the purchase and improvement costs. Yet, with an inherited property, you can save yourself the purchase cost.
In conclusion; there’s a lot a busy mom could do with inherited property. It’s important to understand that you are in charge, whether you choose to keep it, sell it, flip it, or rent it out. Tune in with your emotions to find out the best option for your mental health and your family!