If you are thinking about selling your inherited property, you might be wondering, “Is there a holding period before selling my inherited home?” This article will answer that question and you might be surprised at what you learn…
If you have inherited a property, you might now be wondering what to do with that property. And if you’re thinking about selling it then you’re probably wondering, “Is there a holding period before selling my inherited home?” ” When can I sell it?” “Can I sell it?”
Great question. There are a few things you should know in order to answer the question…
Is There A Holding Period Before Selling My Inherited Home
Probate Versus Inheritance
In general, an inherited property is what you get when someone passes away and leaves you their property. Probate is a stage along the way – it’s the step of proving the will and making sure that the right heir gets the right inherited property. It is a court procedure to determine how the property is divided. **
Therefore, if someone leaves you a home and the house is in probate, you might not be able to sell it right away because the will is still being proved and there could be other heirs contesting the will.
However, if probate is complete and you fully own the inherited house, then you can likely sell without waiting if you are the executor of the will.
If there is no will, the state determines the process of dividing up the estate. That process is also a court process and the home cannot be sold until the court decides the outcome of the estate or allows it to be sold. At that time someone will be authorized to be the point person for the sale.
There Is A Holding Period (But Not What You Think)
There is a holding period with inherited homes but the holding period doesn’t mean you can’t sell… it’s simply a term used to describe how you will be taxed on the property – and it depends on when the deceased passed away.
However, in most cases, this won’t prevent you from selling the property but you should talk to an accountant to see if the holding period will impact how much tax you pay. And your attorney can advise you on the court’s decision about the sale of the house.
There May Be Other Factors
While there isn’t likely going to be a long holding period on the inherited house itself that will prevent you from selling it, you should be aware that there could be other holding periods that will make it more challenging to sell – such as if the house still has a mortgage or some other obligation. But in many cases, these can be sorted out and in the long-term, shouldn’t keep you from selling. The other factor that will be determined by the court is the heirs. If the heirs are not in agreement, then it can draw the process out.
So, if you inherited a house and are now thinking about selling it, and if you’re wondering, “Is there a holding period before selling my inherited home?” then here’s the good news: You probably don’t have to wait to sell if the estate has been settled and closed. Once that has happened you can get the selling process going right away. However, be aware that there could be other factors that may delay the sale, or that could impact the tax you’ll have to pay when you sell.
Here’s a fast solution for you: If you want to sell your inherited house as quickly as possible, give us a call! We’ll can give you a fair, fast evaluation of all your options.
For other articles on inherited houses:
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As the Floresville Real Estate Agent – Faye Y Taylor is here for your questions and to help
**I am not a lawyer nor a practicing accountant. This Website provides general information related to the legal matters designed to help but does not provide legal advice. Although we work to make sure our information is accurate and useful, we recommend you consult a lawyer if you want/need legal advice. No attorney-client or confidential relationship exists or will be formed between you and us.