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. Probate is a stage along the way – it’s the step of proving the will and making sure that the right heir gets the inherited property. If there was no will the state has rules that have to be followed to determine who inherits. That has to be done before the house can be sold. But there is time frame for settling who inherits for each different procedure.
Therefore, if someone leaves you a home with a will 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. If no will, the court determines who inherits based upon the rules of the state. An attorney is your best guidance on this. A house that is inherited by multiple persons has certain steps to finish before the house can be sold if no has been determined to be the executor.
However, if probate is complete and you fully own the inherited house, then you can likely sell without waiting.
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.
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 or some other obligation. But in many cases, these can be sorted out and, in the long-term, shouldn’t keep you from selling.
If the home currently has a mortgage and / or taxes due those must be paid or the home can be subject to foreclosure either by the lender or the tax appraisal district. So it is always advisable to keep payments current. If that is no possible, the heirs do need to move as quickly as possible to settle everything so the house can be sold.
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 once the judge has determined heirship and when / if the house can be sold. 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 give you a fair, fast all-cash offer to buy your inherited house as-is. Having worked with heirs in the past, we are familiar with the process. We will advise you to the best of our ability with our real estate knowledge. We are not attorneys so our advice is not legal advice but practical advice based upon our experience with heirs.