Things to Consider When Inheriting Property

There are many things you should know when inheriting property. Keep reading this post by Riva Title Company in South Miami to learn more about the process of inheriting and managing it. 

Deciding to Keep or Sell the Property

A big decision when inheriting property is to keep or sell it. Many financial and legal responsibilities come with being a homeowner; that’s why you should assess your options without straining your finances. Another scenario to consider is if you’ve inherited the property with more than one person. This means that you’ll need to come to an agreement with this person about what to do with it. It’s essential to ensure everyone feels comfortable with the decision and honor everyone’s wishes. It’s possible that emotions will be running high at this point, so make sure to be diplomatic and considerate when discussing your options.

Don’t Rush Your Decision

Inheriting property isn’t just about getting a piece of real estate, but it’s also about grieving the loss of someone who was important to you. That’s why this decision isn’t just considered a financial but also an emotional one. It’s ok to take your time and assess the situation to figure out how to proceed.

With over 25 years of experience, Riva Title Company has expert title agents ready to help you with your title and escrow needs. Call them at 786-787-7888 for information to help you make the right decision on your inherited property.

What’s Considered an Inheritance?

When a loved one passes along assets to another person after they pass away is called an inheritance. Inheritance can take many forms; in some cases, it might be investments, valuables like art, real estate or automobiles, or even cash. After receiving an inheritance, most people will have many questions; in this post, we’ll do our best to answer the most frequent ones.

Having guidance from professionals is essential when inheriting property. Call Riva Title Company at 786-787-7888 for all your questions about title services and title insurance in South Miami.

Legal and Financial Responsibilities

There are a few legal and financial responsibilities you need to be aware of when you own a property. When you inherit, it’s essential to work out the insurance and mortgage payment situation to be up to date. Let’s go a little more in-depth two these two things.

• Insurance:If the property you’ve inherited already has insurance, it’s essential to do the paperwork to reinsure it in your name. Once the original insurance holder passes away, you’ll usually have 30 days when a policy is still valid. Still, after this time, your property will be uninsured and at risk, if something happens.
• Mortgage payments: It’s also important to be aware of the status of mortgage payments once you inherit a property. Avoid things like foreclosure by paying any outstanding debts. The best way to figure out the status of the property’s mortgage is by getting a credit report for the person who passed away. This will allow you to figure out if there are any mortgages or loans taken out on the house.

Taxes You’ll Need to Pay

The type of taxes you’ll need to pay on your property varies depending on its location. Some of them are estate, capital gains, and property taxes. Let’s look into each of these more carefully.

• Estate taxes: When transferring ownership of an estate, the state where the property is located might charge a tax. If the property is located in Florida, you won’t have to pay for one, but if it’s somewhere else in the country, you might have to pay.  The federal estate tax only applies to estates with over 12.5 million dollars combined.
• Property taxes: These taxes are essential to being a homeowner and should be paid if you decide to keep your inherited property. These taxes vary depending on where the property is located.
• Capital gains taxes: Lastly, capital gains taxes apply only if you decide to sell the property you’ve inherited and if you make a profit over the market value from the sale.

It’s important to take taxes into account when deciding what to do with your inherited property to ensure they’re not a strain on your financial well-being and make sure it’s a good investment not only in the short term but in the long run as well.

You might have many questions about your new property; that’s why it’s essential to talk to professionals to learn as much about the process and obligations that come with it. Call Riva Title Company at 786-787-7888 and speak to an agent today.