Many parents choose to will their property equally to all their children, leaving the kids to decide how to divide everything up. If part of that inheritance is the family home or other real estate, the best way to divide the asset is to sell it and split up the cash. But selling inheritance property presents special logistical, practical and emotional challenges. Having a plan and enlisting professional help will allow the best outcome for everyone involved.
Having A Plan With Eveyrone
If everyone involved in the inheritance agrees the property should be sold, the executor can petition the court to allow the sale and proceed from there. Trouble occurs when one or more siblings wants to sell and the others want to keep the property. In that case, you’re going to have to negotiate. The sibling who wants to retain the property can buy out the other siblings’ interest in the property. He might have to take out a loan to do so. Other times, selling the property is the only option to settle debts of the estate. In this case, the courts may overrule the dissenting sibling. If you’re having trouble coming to an agreement, a family mediator may be able to help broker one. And you should have an estate lawyer represent you to avoid costly legal mistakes.
What To Do Prior To Selling Your Property for Cash
A home that belonged to an elderly parent or other relative may need repairs and updating but if you are selling for cash to us You’ll need to clean out your relative’s belongings. Most realtors would ask for an inspection prior to selling but again, with us you won’t need one. When you sell property you’ve inherited, your tax basis for the property is the home’s value on the day the person who willed it to you died. The difference between that value and the amount you realize from the sale is the gain on which you owe taxes. When several siblings inherit equal shares in a property, they divide the gain equally and each claim that share on their taxes. So, if the home was worth $300,000 when Mom died and you sell for $345,000 and three siblings inherit, each claims a $15,000 gain. If you sell for the value of the home or less, you don’t have a gain to report.