Table of Contents
- What is probate, and how does it affect property inheritance?
- What if there is a lien on my inherited property
- How do I add my name to the deed?
- What to do once you’ve inherited property
- Move into the inherited property
- Rent out the inherited property
- Sell the inherited property
- What do I do if I inherit a home in poor condition?
What is probate, and how does it affect property inheritance?
Who pays to maintain the property during probate?
Can you rent out the property during probate?
Can you skip the probate process to speed up property inheritance?
Do I automatically inherit in the home if I'm the beneficiary?
- Artwork and antiques
- Vehicles
- Clothing
- Jewelry
Remember, probate laws vary from state to state and may impact your ability to control the home's contents. Check your state’s official probate code to see what laws may apply to you.
What if there is a lien on my inherited property
How do I pay off a lien?
- Use your funds to pay off the lien. This is the quickest way to pay off the lien if you can use the money in your savings.
- Negotiate with the creditors for a settlement. This allows you to pay off the debt at a reduced amount. You can also negotiate the loan repayment date, buying you more time to gather funds.
- Take out a loan to pay off the lien. If the lien is small, you might prefer to pay it off immediately to ensure your ownership of the property. Then you can take your time making loan repayments in the future.
- Refinance the home by taking out a mortgage on it. This could be the best option if you have the money to do so and plan on selling your current home.
- Sell the home and pay off the lien with the proceeds you make from the sale.
How do I add my name to the deed?
- Get a copy of the probated will: This copy has gone through probate. The probated Will is necessary for you to change the deceased’s name on the deed to yours. If you are the estate's heir or beneficiary, your name will already be on the Will.
- Confirm the nature of property ownership: Before the name on the deed changes, you must list whether you own the home by yourself or share it with another person.
- Obtain a death certificate to prove that the original owner is deceased: Contact the vital’s office in the state where the death occurred. You can order a copy of the death certificate online, by mail, or in-person.
- Draft a new deed naming you the owner: Finalize the deed by crafting a new draft with the updated ownership details. Then, notarize the deed and make it official by filing it to your County Recorder’s Office.
The Office of Vital Statistics (OVS, or vitals office) is responsible for collecting and preserving birth, death, and marriage certificates. They issue all certified copies of these certificates.
What to do once you’ve inherited property
Step 1. Get the house appraised
- Note any major upgrades that have taken place since the home sale
- Inspect the interior and exterior of the home
- Check the home's structural integrity
- Take photos of the property
- Look for safety issues
Is there a difference between property appraisal and property assessment?
Step 2. Understand your tax obligations
Federal and state estate tax
State inheritance tax
Capital gains tax
Step 3. Evaluate your options to move in, rent, or sell the property
Move into the inherited property
What if there is an outstanding mortgage on the home?
- Assume the mortgage by continuing to make monthly payments.
- Pay off the debt out of pocket or through your savings.
- Refinance the inherited home through a rate and term refinance , which allows you to change the mortgage terms by making them easier. You can lower your monthly payments, reduce the interest rate, or change your loan type or term length.
Rent out the inherited property
- Finding the insurance that benefits you and your property
- Preparing your property for rental and managing tenants
- The benefits and drawbacks of renting out your home
Whether you rent your property in the same area or at a distance, creating a Residential Lease that clearly outlines your terms and conditions is crucial to the relationship between you and your future tenants.
Sell the inherited property
- You’re sharing the inheritance with your siblings or other family members
- The house is in another city or state, and you’re unable to relocate
- You can't afford the upkeep if the home is in severe disrepair
- Continuing any necessary payments while the home is still in your name, such as the mortgage, homeowner’s insurance, property taxes, and utilities.
- Checking the titles and deeds for the property, as you will want to ensure that there aren’t any restrictions on the home or the land.
- Paying the inheritance tax if you are required to do so.
- Cleaning the home and removing the deceased’s personal belongings and, if it has not already been done, ensuring that any items another heir is entitled to or under the probated will or the Revocable Living Trust covers them have been given to them.
- Hiring a real estate agent to help you place the home on the market and sell the property, or sell the home yourself if you’re not interested in paying a real estate agent.
Remember, after you complete the sale, you must pay any necessary capital gains and report the sale proceeds on your personal income taxes.