While inheriting a property might seem like a very nice benefit, the truth is that in many cases, getting the inherited home sold may or may not be a short and / or a simple process. In fact, there can actually be a number of necessary steps.
For example, in most instances, you will need to determine whether or not the decedent that you inherited the property from has a valid will. If this is the case, and you are named in his or her will as the beneficiary of the home, then the court should then follow the terms of that will and, in turn, ensure that their debts are paid, as well as make sure that the assets are distributed accordingly.
Once the ownership of the property has been officially transferred to you, then it is possible that, if the person’s estate is above a certain amount, there may be federal, state, and / or local taxes that are deducted from the person’s overall estate. (Note that in the state of California, there is not an inheritance tax. However, the federal estate tax rate can take up to 40 percent).
Once you own the property, you may consider selling it, if you don’t plan to reside in it or rent it out. If you do decide to go this route, then you will likely be required to pay a capital gains tax on the difference between the amount of your basis in the property (the value of the property when you inherited it), and the amount of the sale price.
Going through the process of selling an inherited property can be somewhat time consuming. There is often a great deal of marketing and advertising that must be done, along with the time and effort that is needed for holding the home open and / or showing it to potential purchasers.
If you’ve inherited a property in the Bakersfield or surrounding area, and you would like help getting it sold, give us a call. We’ll take care of all the details so that you can move forward without having to allocate the time that it will take to get the home transferred to its new owner.