Inheriting a home can be a valuable gift that can significantly impact your financial future. For most people, their home represents the majority of their wealth. Therefore, receiving a home as an inheritance is a generous and life-changing gift.
If you are receiving an inheritance along with your siblings, here are five frequently asked questions to help you navigate the process:
1. How Does Inheriting As A Group Work?
The will should clearly identify the beneficiaries of an estate along with the percentage of inheritance they are entitled to. Although there are various ways to write it, it is common for siblings to receive an equal portion of the total inheritance. This means that all assets, including the home, will be divided equally among them.
2. Who Gets To Make The Decisions About Selling?
It is ideal for the siblings to reach a consensus regarding the future of their inherited home. A decision that benefits all parties will be easier to implement.
The estate executor is responsible for executing the will, which includes the sale of the home. The executor acts on behalf of the beneficiaries for the estate’s benefit. If all siblings agree to sell the house, the executor will list it once it is out of probate. Under certain circumstances, the executor can proceed with the sale of the property even if the siblings disagree.
3. What Happens If Siblings Disagree?
If a sibling wishes to keep the family home, they have the option to make an offer to the other siblings and buy out their shares. However, things can become complicated if the sibling is unable to purchase the other shares. According to the law, individuals cannot be forced to own a house they do not desire, which can result in siblings feeling compelled to sell.
Finding common ground can be difficult. Siblings should seek guidance from an estate attorney when they cannot agree.
4. How Much Will We Get From The Sale Of A Home?
Before you receive any money, the estate must first pay off any debts that the deceased left behind, which are often paid off using the proceeds from the sale of the home. Therefore, you need to subtract any outstanding debts, mortgages, or liens from the total value of the home. Additionally, you will need to pay for any work required to get the house ready for sale, as well as any realtor or legal fees that may arise. Once the home is sold, the executor will distribute the profits according to the will between the beneficiaries. However, it is important to remember that individual taxes also need to be accounted for.
5. What Is The Fastest Way To Wrap Up The Sale?
If you’re planning to sell the property quickly using a real estate agent, the probate period can be used to prepare the home for sale. This includes taking care of any necessary repairs and upgrades, addressing maintenance issues, and keeping up with utilities and lawn care. By doing so, you’ll be ready to put the home on the market when the time comes. In a seller’s market, a well-maintained home that is priced appropriately can sell quickly. Once the home is under contract, it typically takes 30-45 days to close.
Selling a property with your siblings can be a challenging task. Disagreements may arise, but with respect and understanding, you’ll end up with money and fond memories.
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