An inheritance can come in many forms and result in situations like a forced sale of inherited property. Or perhaps you have been left with property, even property with a home on it, that you are not sure what to do with. This is a tough question as this is an emotional time, especially when facing a forced sale of inherited property.
There are a number of legal, financial, emotional, and possibly family issues that come with kind of this inheritance. But there are also a number options when inheriting property. Below are some ideas of things you can do with your inheritance.
Refuse to Take the Inheritance
While this might sound extreme, there are times where this is a wise choice. If there are outstanding liens on the property or the taxes are behind, you need to add that debt to the outstanding mortgage if there is one. If all of these expenses add up to more than the property is valued at, it might be wise to refuse to inheritance. In most situations, this bequest will revert back to the estate.
Sell the Property
This could be an option for any number of reasons. If the property holds equity even after you make some repair and upgrades to the house, it can be a viable candidate to sell.
However, one thing to think about is if you or family members are sentimentally attached to the property. These situations have created rifts in more than one family, so it is definitely worth the consideration.
If you decide to go ahead and sell the property, then make sure to hire a home inspector to find out where the home stands before you go any further. Once you have the report from the home inspector, you can have a contractor give you estimates on how much it will cost to do the repairs or upgrades needed to make the house ready to sell.
Forced Sale of Inherited Property
There are situations where one party wants to sell but the co-beneficiaries do not. This can lead to a lawsuit being filed in order to divide the value of the home into segments. In order to achieve this, a sale is typically required.
If an agreement cannot be reach in regards to keeping the property against selling it, the court will create a situation that calls for the forced sale of inherited property. The result will be you and the other beneficiaries receiving and splitting the proceeds from the forced sale of inherited property.
Use the Property as a Rental
This option can accomplish two things: you can create a steady income while keeping the property that has sentimental value to you and your family. While this can be a great option, if you are not an experienced landlord, make sure to get advice on how to rent the place out from trusted advisors.
Move In
Another option is to simply move into the property that was left to you. If the property is paid off then you have a great opportunity to save money on rent and to keep the memories of the property in your family. Be prepared to invest money in repairs or needed updates, but unless there are major problems with the property, you will still be saving money over paying a monthly rent or mortgage.
While this can possibly be a very profitable inheritance, it will also be a very emotional time for you as well as other family members. If you receive the inheritance, there is a good chance that some family members will be jealous and possibly even angry, especially if you decide to sell or rent the property. Situations like these can often lead to a forced sale of inherited property.
Try to be considerate during this time and make sure to take time to grieve yourself. But remember: don’t feel guilty for someone else leaving you an inheritance.
