Whether a death in the family occurred or a loved one was admitted to a nursing home, inheriting real estate can be a boon -- or a bummer --if it's property you didn't want or weren't expecting to get. Typically, you have three options with inherited property: you can live in it, rent it, or put it on the market.
Should you find yourself in this situation, it's important to understand your legal options. Before making any decisions regarding inheritance property, it's best to consult with an experienced real estate attorney who can conduct a title search to see if what you have inherited is free and clear or if any liens.
Weighing your options?
According to an article by CNBC, it's important to weigh your options before making a final decision. The article suggests considering the implications involved in inheriting a property.
Whether you choose to live in the property or sell it, you may reap some financial benefits. For example, if the home was originally purchased for $100,00 some years ago, it may be worth $400,000 now -- depending on how much updating was done on the home. In addition, you may live in the home and continue to make updates to increase the value.
If you decide not to sell or live in the property, you may rent it out. Renting may provide an additional source of income, but comes with maintenance costs and legal implications. It's advisable to find a long-term, reliable tenant. In the event of a tenant dispute, you may need to seek legal guidance from an attorney.
If the cost of inheritance exceeds the value, you are not required to accept it. In some cases, the cost of updating a property and making it livable may not be worth the hassle. In addition, selling or renting the property may not be a viable option.
Why hire an attorney?
For help with property that you've inherited but don't want, or any other related issues, a highly knowledgable Indiana real estate attorney can help you further explore your options. When inheriting property from a deceased person, it's important to understand that there will be tax implication involved. While attorney Janet Hocker handles all other legal issues surrounding real estate, she is not a CPA or tax attorney, and therefore can't provide any legal advice regarding taxes.
However, if you have any questions regarding real estate, contact us today. We can guide you through the process and ensure that no stone is left unturned.