Inheriting a House? Navigate Your Options and Responsibilities
Inheriting a house can be a life-changing event with emotional and financial implications. Understanding your options and obligations as a real estate owner in St. Louis is critical, whether you sell it, keep it, or rent it out. Insights from LendingTree show you how to make the most of your inheritance.
What’s the Legal Process of Inheriting Real Estate?
When inheriting a house, you don’t immediately receive the title in your name. The inheritance process involves probate, where a Missouri judge reviews the will and appoints an executor to carry out the deceased’s will. The executor handles responsibilities like insurance, identifying debts or liens, and paying utilities. They also distribute belongings and manage property taxes. This ensures that the estate’s assets settle any outstanding debts before you receive ownership.
What Should You Do When Inheriting a Home?
When you’re in line to inherit a home, there are five steps you should take immediately:
- Communicate with the Executor: Establish a clear line of communication with the executor. This will help you learn the necessary information and simplify the transfer process.
- Coordinate with Co-Heirs: Work with the others if you are one of several heirs. Avoid costly disputes by deciding whether to sell, keep, or rent the property.
- Get an Appraisal: An appraisal calculates the property’s value. This informs your decision to keep, sell, or rent the home while informing you of tax liabilities.
- Evaluate Debts: Identify any liens or debts tied to the property and compare them against the house’s value. Understand the financial implications and incorporate that into your decision.
- Seek Professional Advice: Consult estate planning attorneys, accountants, and financial advisors. These professionals can clarify ownership-related problems, such as debt obligations and inheritance taxes.
What Should You Do with the Real Estate?
Guiding Clients Through Real Estate Matters
The Fitzgerald Firm stands out in St. Louis for its comprehensive real estate legal services. Whether you are buying, selling, or inheriting a property, Real Estate Lawyer Amber Fitzgerald and her team provide exceptional guidance and support. Our firm handles everything from contract review and negotiations to due diligence and closing representation. We ensure that all legal aspects are meticulously managed, allowing you to focus on your real estate goals with confidence.
Moving Into Inherited Real Estate
Moving into the inherited real estate can provide a new residence or vacation home. However, this option can be costly due to mortgages, taxes, repairs, and insurance.
Renting Out an Inherited Home
Renting out the property can provide passive income while keeping it in the family. Buy out other heirs or work with them to share costs and rental income.
Selling Your Newly Inherited Home
Selling the house is a straightforward way to obtain immediate cash. The proceeds can help pay off debts tied to the house, and the remaining proceeds will go to the heirs.
How Can You Finance an Inherited House?
If debts and taxes are associated with the house, that doesn’t mean you need to sell. There are many ways to finance the home and keep your inheritance:
- Mortgage Assumption: Take over the existing mortgage if its terms are better than what you’d get with a new loan. The lender must approve the assumption.
- New Purchase or Refinance Mortgage: You can obtain a new mortgage or refinance to put the house in your name. This option is particularly useful when the property has a reverse mortgage.
- Cash-Out Refinance: Refinance the mortgage with a cash-out option to tap into the home’s equity to cover expenses, like buying out heirs or making repairs.
- Investment Property Loan: Mortgage an investment property if you plan to rent the house.
Inheriting Real Estate in St. Louis? Schedule a Call Today
Navigating the process of inheriting real estate requires legal, financial, and practical knowledge. You can get this knowledge by scheduling a call with our St. Lous estate planning team. We’ll listen to you and provide tailored advice about handling your inheritance.
Key Takeaways
- Inheriting a House: The probate court oversees the inheritance process, and the executor handles legal and financial responsibilities.
- Options: Move in, rent out, or sell the property based on financial goals and agreements with co-heirs.
- Financing: Explore mortgage assumptions, new or refinanced mortgages, and other financing options.
Ready to take the next step in your real estate journey? Contact The Fitzgerald Firm today to schedule a consultation with our experienced St. Louis team. Let us put our experience to work for you and provide you with the legal guidance and support you need to succeed in Missouri’s competitive real estate market.