Unfortunately, it is inevitable; one day most of us will receive a phone call informing us of a death in the family. Amid your grief, you might also learn that you have inherited a property or home. Knowing what to do can be complicated and emotional, so we have found some great ideas on what to do after inheriting a home. Keep reading to learn more, and find the full article here.
“Making the decision about what to do with an inherited house is a challenge on multiple levels,” says Grant Gerhart, a Realtor® in Orange County, CA, and author of the “Inherited House Guide.” “There are a lot of financial, legal, and technical issues to consider during a particularly difficult time.”
To help ease this decision-making process, here are the options worth considering, along with the pros and cons of each.
Option No. 1: Refuse the inheritance
This might sound nuts, but there are cases where taxes and liens on a property, combined with the outstanding mortgage and taxes, mean there isn’t enough money in the deceased’s life insurance policy or savings and investments to cover the difference. That means that you, as heir, are responsible for paying those debts, and to do so before the house is yours. You could wind up actually owing money on the property you inherit.
If you find out that’s the case, you do have a handy escape hatch: You can bow out and let the executor handle the creditors.