If you are fortunate enough to have been born during the baby boom generation (between the mid-1940’s and 1964), then you may be among the many families who will inherit real estate in the coming years. Boomers are expected to inherit $136 trillion over the next four decades and much of that wealth will come in the form of real property. Should that time come, will you know what to do with the home or land that becomes a part of your portfolio? There are several professionals you will want to know who can assist you in deciding what to do when you are inheriting real property.
- A good real estate broker: Make sure that the agent you work with is knowledgeable and experienced in dealing with inherited properties as there are often knots to untangle. In addition to title aspects that I will address momentarily, your agent should be able to advise you accurately on value so that you can make the best financial decision for your family. That agent should also be sensitive to the emotional issues that often arise when dealing with inherited property and help alleviate conflict and stress rather than adding to it. The agent should also be able to manage a sale when the family is out of state in the event that becomes necessary. Most importantly, your Realtor® should work to earn your trust so you know that the advice you receive is in YOUR best interest, not THEIRS!
- A crackerjack title and escrow company. Some of the issues that arise out of inheriting real property concern the title in which the property is held, the transfer of title, and the family members who are inheriting the property. Whether the intention is to hold onto the property or to sell the land and/or home as quickly as possible, those title issues must be dealt with by an experienced title officer who operates with a steady hand. Even better, if your real estate broker and your title company have a history of working together that will smooth out a multitude of potential problems.
- A good CPA is your best solution to avoiding tax implications related to inherited property and/or the sale of that property. Will you have to pay capital gains or estate taxes? How can you best position yourself to minimize any tax burden? What if you are planning on selling an inherited property and taking those funds to purchase another home? There are a multitude of possibilities for you to consider and you will want to know the financial implications of each of those possibilities that arise out of inheriting real property.
- A probate attorney may be necessary if the estate must undergo probate. Different circumstances may result in the necessity of probate. Sometimes the title company discovers something that may require an attorney referral; sometimes the real estate broker identifies an issue that may require that the estate be probated. If, in fact you are inheriting real property that requires probate, you will want a good attorney that can guide you through it and NOT take you to the cleaners!
You can trust The Sharyn Younger Team not only to assist you to determine your best course of action when inheriting real property, but also to put you in touch with ALL of the best services and professionals to make whatever plan you decide on to go as smoothly as possible.