Managing a loved one’s affairs when they die is never easy. However, if you have recently lost a loved one, you may need to apply for probate to deal with their real estate.
It is a gruesome topic shunned by many, but when a loved one dies, you may be responsible for sorting out their property, money, and other possessions in a process referred to as “probate.” Unless for the most complicated cases, you can file for probate on your own.
But before you get going you need to:
- Check to ensure that you can inherit the land
- Prove order of Succession
- And have a new deed drafted
You Already Inherited Land, What Next?
First of all, inheriting land is beneficial to your life if you make the right decisions. While most people understand exactly what they need to do with inherited property, others are not sure to retain it, sell it, or live in it.
Making this decision can sometimes prove difficult, especially for the many heirs who have an emotional connection to their inheritance.
You need to make many considerations to determine if your new land is going to be a great opportunity or a headache.
This might help yo evaluate:
Costs Associated With Inherited Land
It is essential to understand that there are many costs associated with your new property.
Outstanding obligations of an estate are usually settled after death during the administration of the estate by the executor or court.
However, some obligations might come after the estate is processed depending on:
- The value of the property
- Relationship with the beneficiary
- How the estate was settles
- And many more
But still, other costs unrelated to the inheritance may come up in inherited land ownership. They include:
Also known as death, taxes can be complicated unless you are well informed and knowledgeable. You might even require to hire an attorney to sort things out.
When someone passes, an inheritance tax is levied on the estate left behind. Most times, the beneficiary does not pay this inheritance tax. This is especially so if estates fall below exemption thresholds, which currently stands at $ 5 million, or have liquid assets that can pay all the estate taxes.
Nevertheless, you may be charged if the deceased property cannot or will not pay it.
Inheriting a piece of land comes with inheriting any liabilities and liens on the property.
Death does not eliminate any outstanding mortgages on the land. In some cases, death will cause the entire loan to become due.
If you can pay the costs, then well and good. However, you may want to consider selling if the prices are too much. Many trustworthy land buyers will deal with all the paperwork for you.
This cost is associated with inherited land located in a planned community. Even if there is no house on the property, you may be liable for previous unpaid homeowner’s association (HOA) fees. You will also be responsible for any recurring fees going forward.
Please note that failure to settle the HOA fees may result in liens on the lot or even foreclosure.
Insurance and Maintenance
Inheriting a piece of land also comes with inheriting the responsibilities associated with the property. These responsibilities include maintenance costs and insurance, if any.
In some states, the transfer of land, even through inheritance, may lead to a reassessment, which can lead to higher land taxes for the new owner.
And paying all these costs is mandatory. The last thing you want after the inheritance is losing your property to auctioneers after incurring considerable expenses.
Sell or Hold On?
Many people prefer holding on to their inherited property.
Inherited land is viewed as “family” land and has an emotional attachment for family members. We understand you might choose to hold on to old memories of growing up and going fishing on your inherited land, especially if you are comfortable settling all the associated costs.
Even if there are no attachments to the inheritance, some people view land as a long time investment or as something to pass down to future generations.
Don’t rule out selling just yet.
Selling your inherited land has many benefits like a cash windfall or money to invest in another income stream.
Besides, if you can sell immediately after your loved one’s death, there is little or no taxable capital. All the costs mentioned above are now the buyer’s problem.
Selling the Property
If you decide selling is the best option, you should start by hiring an appraiser to value your land. Expert opinion always matters. You may also require the help of other experts like surveyors and real estate lawyers.
Next, you can place a large sign on the property. Writing for sale and a phone number is enough.
Afterward, you sit back and wait for calls.
But note that selling vacant land is challenging, and takes longer than selling a house.
We Buy Land Fast
Instead of going through all that hustle to sell a piece of land, you can contact sell land fast to sell your property quickly. We are interested in buying your inherited land.
Our extensive network of vacant land investors might buy your land, or we can decide to buy it ourselves.
Sell Land Fast makes selling land easier with our hassle-free transactions, fast cash, and paying all closing fees.
Click the button below to Get a Cash Offer Now.