If you are thinking about selling your inherited property, you might be wondering, “Is there a holding period before selling my inherited home?” This article will answer that question and you might be surprised at what you learn…
If you’ve inherited a property, you might now be wondering what to do with that property. And if you’re thinking about selling it then you’re probably wondering, “Is there a holding period before selling my inherited home?”
Great question. There are a few things you should know in order to answer the question…
Is There A Holding Period Before Selling My Inherited Home
Probate Versus Inheritance
Clarifying the difference between probate and inheritance is essential in understanding the process you might need to navigate. In essence, inheritance refers to the assets you receive upon someone’s passing, like a property. In contrast, probate is a legal process, a necessary step to validate the deceased’s will and accurately distribute their assets according to their wishes.
If the inherited property is still in probate, selling might be on hold as the will’s legitimacy is being assessed and potential disputes among other heirs are being resolved. It’s a complex, often confusing process, which might hinder your ability to sell immediately.
However, once probate is finalized and you have full ownership of the property, selling becomes a feasible option, free from legal restrictions. This is where our expertise at Drive By Home Buyers can truly shine. We offer personalized guidance to homeowners, helping them navigate these legal intricacies, from probate proceedings to eventual sale. Our aim is to transform this often daunting process into a streamlined, understandable journey. Our expert guidance ensures you’ll feel confident and informed every step of the way, making the transition from inheritance to sale as seamless as possible.
There Is A Holding Period (But Not What You Think)
There is a holding period with inherited homes but the holding period doesn’t mean you can’t sell… it’s simply a term used to describe how you will be taxed on the property – and it depends on when the deceased passed away.
However, in most cases, this won’t prevent you from selling the property but you should talk to an accountant to see if the holding period will impact how much tax you pay.
While the term ‘holding period’ might sound limiting, it doesn’t restrict your ability to sell an inherited property. It primarily pertains to the tax implications linked to the timing of the original owner’s death. Although it may influence the calculation of potential capital gains taxes, it doesn’t stand as a barrier to your decision to sell.
The crux of the matter lies in how the holding period might affect the amount of tax you’re liable to pay upon selling the property. That’s why it’s crucial to consult with a knowledgeable accountant or tax professional. They can provide personalized guidance based on your situation and help you comprehend how the holding period may affect your tax responsibilities, ensuring you’re fully informed and prepared for any tax implications arising from the sale.
There May Be Other Factors
While there isn’t likely going to be a holding period on the inherited house itself that will prevent you from selling it, you should be aware that there could be other holding periods that will make it more challenging to sell – such as if the house still has a mortgage or some other obligation. But in many cases, these can be sorted out and, in the long-term, shouldn’t keep you from selling.
So, if you inherited a house and are now thinking about selling it, and if you’re wondering, “Is there a holding period before selling my inherited home?” then here’s the good news: You probably don’t have to wait to sell and you can get that process going right away. However, be aware that there could be other factors that may delay the sale, or that could impact the tax you’ll have to pay when you sell.
Here’s a fast solution for you: If you want to sell your inherited house as quickly as possible, give us a call! We’ll give you a fair, fast all-cash offer to buy your inherited house as-is.