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Losing a loved one can be difficult, even if you had an amicable relationship. When someone without a surviving spouse passes away and leaves behind a property that can't be divided equally among their children, the process of a probate court can take years to resolve.
This can leave siblings feeling overwhelmed and frustrated with each other as they deal with an inherited home. To help make this process easier for you and your family members, we have compiled 6 tips on how to do deal with an inherited property in Spartanburg, SC!
1. Understand the process
In a state like South Carolina, if someone dies without a surviving spouse or leaving a will and can't be divided among their siblings, the estate can have a probate court to distribute the property. There can be a great deal of delay in this process as it can take years for it to resolve.
In addition, there can be significant fees that can accumulate over time. For example, if there are wills from other siblings who have been left out of the property's distribution, they can have to pay bills associated with the estate for several years before receiving anything.
2. Make a plan with your siblings for how the property will be handled
It can be very frustrating when siblings can't come to an agreement about what to do with the property. Involving your family can help diffuse the tension and can make it easier for everyone involved. If you can't come to an agreement, you can ask for assistance from a mediator or take the matter into court.
The process can be relatively straightforward depending on if there is a will or not. If there is a will, you can use that as some leverage in getting what you want out of this property.
For example, if some siblings are getting money from this property, they can agree to let those who are staying in the house have first dibs on renting it from them before they move away.
3. Consider the Costs Associated with an Inherited Property in Spartanburg, South Carolina.
Annual Property Taxes
Make sure you can afford the tax burden that can result from inheriting property. Taxes can accumulate and can make it difficult to sell an inherited home. If you can't afford to pay the annual property taxes on the property, you may want to consider other options, such as renting the house out.
Utilities
There can be a variety of utility expenses for an inherited home in Spartanburg, SC. Depending on the type of property and previous history with utilities can determine how much can be expected to pay annually. Some utilities might not cost anything at all while others can be expensive.
Utility costs can range from $100 to $500 annually. If you are planning on occupying the house, you can expect higher expenses than if it is vacant. Water, sewer, gas, and electricity are common utilities that will need to be transferred into you or a sibling’s name to pay.
Maintenance
Ongoing maintenance can be a costly undertaking. It can also create a conflict of interest between siblings who inherit a piece of property since the person who inherits this responsibility can be different each time. Maintenance can include general inspection and upkeep of an inherited home.
In South Carolina, no one can predict if the home will be in good shape or not, but you can plan ahead and decide what to do if there are problems along the way. If the property is inherited from a family member that has recently passed away, it’s likely their estate will still have a role in how the property is maintained or disposed of.
Mortgage Obligations
If you inherit a property with a mortgage, the lender will want to be paid off or if that can't happen, then they can take ownership of your inherited home. It is important to establish at the time of the inheritance how the mortgage can be paid off and who can afford to do it.
If you can't sell your inherited home as-is or as-desired, then you can offer to lease it out. In this case, the lessor would owe their mortgage obligation as well as any other expenses related to maintenance and upkeep of the property. The lessee only pays rent every month for living in the house but does not have financial responsibility for any past or future mortgage obligation associated with that home.
If you can't pay off a mortgage or rent out your inherited house, then the bank can sell it. The new owner will likely ask for any past unpaid balances to be paid before they can take ownership of the house. If you can offer a payment plan and make good on this agreement by paying back what is owed overtime, the new owner can offer a new mortgage to you in the future.
Inheriting property can be overwhelming, but if you have inherited a home from someone who recently passed away and they left behind an estate plan, then there is at least some kind of guidance for how this can all play out.
Insurance
Insurance can be costly when holding on to an inherited home. Insuring a house can cost about $500 to $1500 per year, depending on the value of the home. It can also be more if you have a high crime rating in your area or are located near a wildfire zone
4. Be Aware of Any Capital Gains Tax Implications When Selling an Inherited Property.
Capital gains taxes can apply to inherited properties and can be a concern for those who inherit a property and choose to sell it. According to the IRS, if you inherit property and do not elect to either keep it as your main home for two years or take the $500,000 exclusion, then you can be hit with capital gains taxes on any profit from selling the house.
Capital gains taxation can depend on the value of the house as well as how long you held it. If you sold an inherited house without paying capital gains tax beforehand, then you can also owe penalties that can range from 5% to 25% of your profit.
5. Don't be afraid to talk about the process with your siblings
As the saying goes, "honesty is the best policy." When dealing with an inherited home, honesty can be key. It can help siblings to be honest with each other and work together on a plan that is fair for everyone.
Honesty can help to combat some of the damage that can come from greed and envy among those who are family. It can also prevent people from feeling as though they have been unfairly separated from their parent's estate.
It can also help if siblings can talk about how they each want to live in the home or what they would like to do with shared property. You can ask a real estate agent for advice on how you can go about working on a plan for your home together, too.
6. Get legal advice if necessary for the probate process according to South Carolina Law
The process can be difficult enough without the added worry of dealing with siblings. Being able to work together can make it easier to deal with any family squabbles that can arise. A lawyer can help you figure out which steps are necessary for dealing with an inherited property in South Carolina, as well as help you decide if it is worth keeping the home or selling it.
One can inherit an estate without any awareness that there are other siblings who can also claim the inheritance. One can also find themselves in a position where they do not know who the previous owner was or what the property is worth.
You can choose either of two options: you can sell the inherited property and split any profits or keep it as a personal home and live in it with your siblings. If you decide to sell, then you can file for an estate value on all assets including both realty and personal belongings such as furniture. This can help to avoid any problems with one sibling gaining more than another in the process of selling or can assist in getting a fair value for your inherited property if it is not immediately clear what kind of worth you can get out of it.
If siblings do not agree on how they want to proceed, then they can seek legal counsel who can help them to figure out how can resolve any conflict. You can seek advice from a lawyer on the best way for siblings to handle an inherited property and what steps need to be taken in order for you can get your fair share of its value.
You can also ask a real estate agent who has experience working with families dealing with inherited properties.
Partner Up With Investors to Sell an Inherited Home
In order to sell an inherited property in an efficient and professional manner, it can be beneficial to partner up with cash buyer investors like Target Property Solutions. This can be key when you do not know who the previous owner was or how much the value is. If you are trying to get a quick sale, then you can ask cash buyer investors to buy your inherited property in an all-cash deal.
This can be beneficial for both parties because it can relieve some of the stress involved if siblings do not know who the previous owner was or how much their home is worth. Cash buyer investors like Target Property Solutions can offer a fair price with little fuss and can help you to get the most value for your property.
These can be difficult topics to discuss with siblings, especially if they have had a more amicable relationship with their parents than you did. It can also be tough when dealing with an estate that is not immediately clear of its worth or who owned it in the first place. As long as you can be open and honest with one another, then siblings can work together to deal fairly with a property you have inherited.
Target Property Solutions can help you out with any inherited homes that your family might have in Spartanburg, South Carolina. They can offer an all-cash deal, which can be beneficial if siblings can't come to an agreement on whether they want to keep the house or sell it.
Target Property Solutions can also provide solutions for whatever problems you might be having. They can help you figure out what the property is worth, how to approach it, or what steps need to be taken in order for you can get your fair share of its value. If our team can help answer any lingering questions before you make up your mind about whether we can do anything to help you out, please feel free to call us now! (864) 335-4642
In conclusion
If you are a sibling who has inherited property in South Carolina, then the tips provided can help you to navigate how best to deal with it. You can speak with your siblings about what they would like for themselves and work together as much as possible. If there is no agreement on whether or not to sell an inherited home, then consider seeking legal counsel so that you can get advice on how can resolve any conflict fairly. It may also be wise to partner up with investors to quickly sell a property for cash.