It’s never easy to come to terms with a recent passing of a loved one or even a distant relative. But to realize that you are now the sole owner of their inheritance, what do you do?
We recommend consulting with experienced advisors to plan your course of action, and there are plenty of resources to help you along the way. In Massachusetts, there are many state laws to abide by that you want to make sure you are doing everything right from the start. There are a few steps along the way to consider, if you are looking to sell your inherited property before it becomes a burden.
Make sure you have a clear title. Check to see if there are any liens, encumbrances, or title defects that will need to be taken care of. Also, if you are not dealing with a probate situation, and you are the sole beneficiary and heir for the property, it makes the process easier. However, if there is another or several named beneficiaries in the will, or there was no will for next of kin, you will need to come to an agreement with joint heirs on what to do with the property.
The longer that you hold on to your inherited property, the more you have to consider the costs of maintaining the estate. Depending on your course of action, it can take months or even years to finalize everything. During that time, there are expenses like continued utilities, maintenance, property tax, and any needed repairs.
There is currently no inheritance tax in Massachusetts. You must keep in mind that capital gain taxes are applied to the sale of inherited property if the value exceeds the fair market value and capital gains exemption. If the home has been owned for less than a year, short-term capital gains are generated. If you sell the home after one year, long-term capital gain taxes are applied. The tax rate is usually the same as individual income tax rates and in the state of Massachusetts for short-term capital gains is 12% and for long-term capital gain is 5.2% (subject for change).
If you decide to sell your inherited property
Look into selling your home fast. If you contact Sell Fast Boston, we can walk you through the procedure. There is no need to do any maintenance, or seasonal updates for us. We will buy houses in any condition as long as they meet our own criteria. It takes a few minutes to discuss, and less than one week to close. We are available to answer any questions or concerns you may have regarding selling your home during this time.