Inheriting real estate is rarely as wonderful as it may appear in movies. The responsibilities that come along with this gift can be extremely overwhelming. That’s especially true if it is an older property in a state of disrepair. While your loved one or close friend may have had the best of intentions, often the property is an emotional and financial burden. Here is some important information you need to know about inheriting real estate in Louisville.
Financial Responsibility
One thing you should know is that the recipient of an inheritance of real estate is financially responsible for the property. This includes any outstanding debts attached to the property, including liens. Additionally, you are now responsible for all upkeep. If the property is an investment for rental income, you may also be taking on landlord duties, which brings along more responsibilities. You will also owe property taxes and possible homeowner’s or property owner’s association fees. Often, these associations have strict guidelines that must be adhered to regarding the maintenance and appearance of the property.
Repairs
The frequency and expense of repairs begin to increase at a quicker pace as homes age. This in turn increases the risks and expenses involved with inheriting real estate in Louisville that is not new or in pristine condition. Whether your intent is to live in the property or list it, you should take steps to educate yourself on the condition of the home from the foundation to the top of the roof. You will want to save yourself from catastrophe by hiring a professional inspector to fully understand what lies ahead. It is highly recommended that you contact at least three professionals for each type of repair. Keep in mind that the costs of holding a property continue despite the status of the repairs. Be certain to get estimates of both the time frame and total overall cost involved.
Clearing Personal Property
Inheriting real estate in Louisville can be a very emotional experience and may even make it difficult or impossible for some to even enter the property. Regrettably, you will need to either remove all of the personal property of the deceased from the home yourself or hire professionals. Depending on the condition of the property and the tendencies of your benefactor, this could mean going through mountains of clutter and belongings. Delaying the process to avoid painful memories can be extremely costly. Plus, delaying repairs on the property lowers the value, as it continues to deteriorate.
Taxation
Real estate is one of the most common items passed on. The tax implications are something everyone should have at least general knowledge about. Under the Unified Gift and Estate Tax system, estate tax is based on the value of property transferred through inheritance. That is calculated based on specific guidelines and includes possible deductions. While often no federal estate tax is owed as the beneficiary, this is not always the case. Every American currently is allowed to inherit up to $11.18 million. You will also want to be certain to investigate gift tax. Additionally, there are several states which do have estate taxes, so familiarizing yourself with these laws may be helpful.
Purchasing Other Property
Because you incur the financial responsibilities along with the property, if you were on target to purchase your dream home, everything may have just changed. One of the major changes may just be in the eyes of your lender. Depending on the remainder of the mortgage and any other expenses that are now in your name, your debt-to-income ratio may now mean you no longer meet the guidelines to qualify for a loan. Additionally, the outlay for repairs is likely to deplete whatever savings you have managed to gather in anticipation of your plans.
How We Can Help You
For many, holding onto an inheritance of real estate property is much too time-consuming or simply not financially possible. There is a simple and quick solution that will easily eliminate any concerns.
Turn to We Buy Houses in Kentucky for an as-is home sale! Husband and wife team Daniel and Catherine Close offer cash for houses in Louisville, Kentucky and surrounding areas. These include: Bardstown, Fern Creek, Highview, Jeffersontown, La Grange, Lyndon, Mount Washington, Newburg, Okolona, Shelbyville, Shepherdsville, Shively, St. Matthews, Taylorsville and Valley Station. We also buy homes in Southern Indiana, including: Clarksville, Jeffersonville and New Albany.
Working with us means total convenience, with no showings or open houses. Just pack what you want, and leave the rest behind. We will help you with the paperwork and make the entire process easy, explaining every step along the way. The price we offer is what you will receive at closing.
Just send us a message, or call us at (502) 383-1484 to discuss the market value of the property and the possible options regarding selling your unwanted inherited property.
