Did you know that 22% of households in this country receive a wealth transfer? Whether that is in the form of cash or property, many people can expect to get something from their family in the future. Large or small, the amount can make a huge difference in terms of lifestyle and financial stress.

Have you been left a property by a loved one? There are several important things you need to do if you inherit a house. This simple guide will cover the necessary steps to take.

Consider the Responsibilities When You Inherit a House

While inheriting a house is exciting, it is important that you consider the responsibilities of becoming a homeowner before you get swept up in the thrill of owning a property. If you already have a primary residence, do you have the time to devote to a second property? And can you afford the upkeep and hire a property management company if you can’t make regular visits to the house?

Get an Inspection

Before you make a decision about homeownership when inheriting property, get an inspection done first. It’s critical that you have a clear picture of how much repairs the house needs. If the scope of it is beyond your budget, you may need to sell the house. 

Find Out About Mortgages

The next step in the process is to find out if the home has a mortgage. There are many types of mortgages, and if your relative was advanced in age they may have had a reverse mortgage that could affect the value and complicate things. You will then have to decide what to do with the mortgage or if you have the finances to pay it off before assuming ownership. 

Research Tax Implications

While you probably won’t have to pay any kind of tax when you receive the home, it’s a different story if you decide to sell it. If you sell it shortly after taking ownership, you’ll have to pay a capital gains tax. 

Contact a Professional

If you need help with estate planning so that you can be prepared and spare your family the hassle of a lengthy legal process, contact a professional estate planning attorney. They can assist you with wills, living trusts, and other things like probate should you need it. A good attorney can help you prepare for your future and make the process easier if you have a deceased relative with assets that need to be divided. 

Get the Help You Need

Now that you’ve learned what to do if you inherit a house, you can be proactive and start to take the first steps. Get an inspection done of the property and find out how much work it needs and then figure out if you have the money to invest in it. Then have a professional attorney advise you on all of the implications of keeping the property or selling it before you decide. 

Did you find this article useful? If so, check out the rest of this site for other helpful home-related tips.