Help! I’m Inheriting a House.

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ProbateMany people are still confused about what to do if they inherit a house, what is probate and how much do they owe in inheritance taxes.

Remember, when you know that you are going to be inheriting a house, nothing has to be done immediately. You and siblings will have a lot of different emotions and memories about the home. Think about what the home means to each of you. Some may want to sell and split the proceeds immediately. Others may think about living in the house again. Everyone will want to know what the house is worth.

Was there a will or not? According to The Peoples Law Library, “If the decedent did not have a will, Maryland law determines how the decedent’s property will pass to the family of the decedent.”

If there was a will In Maryland there are two kinds of probate – “administrative and judicial. Administrative probate is for uncontested wills and is handled by the county register of wills. Judicial probate is usually for contested wills and is handled by the county Orphan’s Courts.”

What is probate?

Nolo Law for All says “Probate is a legal process that takes place after someone dies. It includes:

  • proving in court that a deceased person’s will is valid (usually a routine matter)
  • identifying and inventorying the deceased person’s property
  • having the property appraised paying debts and taxes, and
  • distributing the remaining property as the will (or state law, if there’s no will) directs.

Does all property have to go through probate when a person dies?

Nolo Law for All says,

  • Most states allow a certain amount of property to pass free of probate or through a simplified probate procedure.
  • In addition, property that passes outside of your will — say, through joint tenancy or a living trust — is not subject to probate.

For deaths in 2015, if you are a Maryland resident, or own valuable property in Maryland, and leave assets with a gross value of more than $1.5 million, your executor will have to file a state estate tax return. If you have a larger estate than $1 million try to hold on, the ceiling is going up:

2016: $2 million

2017: $3 million

2018: $4 million

As for inheritance taxes, the inheritance tax does not apply when property is inherited by the deceased person’s:

  • spouse
  • child (biological or legally adopted), stepchild, former stepchild, grandchild, or other lineal descendant
  • parent (including stepparent or former stepparent)
  • grandparent, or
  • brother or sister

Once a property has cleared probate, the heirs may want to quickly dispose of the property. That’s where Trusted Home Buyers can help. The heirs may not want to bring the house up to today’s standards. There may be no money for repairing, or paying taxes. There may not be an inclination to spend time renting, or staging and showing the house. Trusted Home Buyers is a cash buyer solution. We can buy the property “As-Is” and we don’t require repairs; we pay cash and can close quickly if needed; and there are no closing costs or inspections for the seller.

Trusted Home Buyers is part of a nationwide group of thousands of investors who are helping tens of thousands of homeowners every year.  We may not be the “traditional” route, but we CAN help and we can do it quickly.

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