Sometimes the unexpected happens and a family member passes away leaving behind a family to grieve the loss of their loved one. If this happens to you, there will be arrangements to be taken care of and decisions to be made including how to handle inherited property. Here are a few tips to help make the process a little more manageable.
How to Handle Inherited Property
Throughout the process, you’ll want to remember that everyone’s emotions are high. For some, the loss of a family member brings great sorrow; for others, relief that their loved one is no longer in pain. The death of a loved one can can also bring up both good and bad memories from the past. As you go through the process of determining the future of your inherited property, don’t allow these emotions to sabotage future relationships with your living relatives.
Know the Process
If your loved one has no debt and has passed the home onto one specific individual, consider yourself quite fortunate. The home is yours without the weight of paying off creditors! However, in most situations, family members find themselves the recipients of a house that involves shared-ownership. For example: a dad dies leaving behind his property to his two living children. The inheritance is split between the two siblings. Unless these siblings plan to live in the home together, a decision regarding the future of the home needs to be made.
In the event that the property is owned by more than one person, you can either sell the property and divide the profit or one individual can choose to buy out the shares from the other property owners. In most larger estates, a probate will be required to determine what expenses need to be paid out and make the final decisions as to whom the property ultimately belongs.
Make a Decision to Keep, Rent or Sell the Home
Once property ownership has been determined, you have a few options. You can keep the home, choose to lease the property or sell it outright.
If you decide to keep the home, you’ll need to decide how you’ll use it. Will you move in and sell your other property? Will this become a vacation home? Be prepared for the amount of work required to make the home yours. There will be many memories to treasure but multiple cosmetic changes and repairs as well. As you renovate, you can find joy in knowing that a little piece of your loved one lives on as you live in their home.
Renting may be a great way to keep the home in the family without having to live in it. It’s also a great way to create income. With a house fully paid for, the majority of the income accrued by tenants is profit. There are challenges to having an investment property as well. Renovations will be required to make sure that the property is ready for renting.
Getting Your Home Rental Ready
Here’s a great checklist to follow to get your home rental-ready. Finding the right tenants will also be pretty important. You’ll want to make sure that you can count on the rent being paid each month on time. There’s the normal wear and tear of a home that will need to be addressed regularly as well. That could be a leaky faucet or a fence repair or a new A/C unit! Be sure to weigh the pros and cons. Here are some great insights to help you determine whether renting is for you.
The decision to sell a home previously owned by a loved one is a very difficult choice to make. For some the memories made within the home are just too precious to even consider leaving it behind. For others, selling the home is a much easier decision to make. Regardless of how you feel, take time to make sure it is the right decision for you. It is wise to consider that your loved one more than likely wasn’t looking to sell prior to their death. There may be quite a few repairs to consider prior to putting it on the market to get a competitive price. There’s also lot of hidden costs involved in preparing your home to be sold, some of which, you may not be aware. You can read more about those here.
At Ben Buys Indy Houses we’d love to help you make the decision that is best for you and your situation. We buy houses AS IS with no need for changes or upgrades. If you make the decision to sell, we are here to walk you through the process but don’t take our word for it. Check out what these clients had to say about working with us.