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’ve 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?”
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. The inheritance of a property follows a chain of title that is laid out by the laws of the state. For example, if a father passes away, his property goes to his wife and children, and then to the grandchildren, etc. This is how legal ownership will flow unless it has been laid out differently in a will.
In a will, the owner of the proprety can leave it to whoever they want. For the will to be enforeced, it must be probated. 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.
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. When the probate process has been completed, someone will have been named executer of the estate and that person is now responsible for selling the house in accourdance with the will.
Also, if there is no will and all the heirs that are legally in title are in agreement to sell the property, then you can also sell the property without having a will or going through probate.
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.
Most often when you inherit a house, you are given a stepped-up basis for tax purposes. This means that the basis for your inherited house will be the value of the house at the time you inherit it and therefore you will only pay taxes if you sell it for more than the stepped-up basis.
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 have tax consequences from selling an inherited house.
There May Be Other Factors
While there isn’t likely going to be a 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, back taxes, or some other obligation. But in many cases, these can be sorted out and, in the long-term, shouldn’t keep you from selling.
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 and you can get that 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.
If you want to read more about the process for selling an inherited house, click and check out the full guide to selling an inherited house in San Antonio, TX. Or just reach out to us, we are happy to try to help you even if you just need us to answer a few questions so that you can make the best decision.
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 give you a fair, fast all-cash offer to buy your inherited house as-is.