Inheriting a house from a parent or relative can come with a lot of responsibilities. Not only do you have to go through the belongings inside the home, which can be an emotionally draining experience, but you have to deal with financials and other decisions regarding what to do with any property or assets left behind. Consider a few of the tips listed below if you’ve recently inherited a home from parents or another loved one.
1. The home won’t necessarily be free
Many people assume that estates are inherited free of charge, most are unfortunately, surprised to find that this is not the case. Look into whether or not your parents still have a mortgage or a reverse mortgage, to first determine how much is still owed on the house. If there is no mortgage, you will still need to consider any additional taxes based on where the estate is.
2. Discuss options with relatives
If you have siblings, you may be sharing the inheritance with them, including any property. If there are multiple siblings, you probably won’t all want to live in the house together, which means you will likely sell the property and split any leftover finances. Either way, if you’re working with relatives, keep everyone in the loop before making any big decisions.
3. Spend time addressing outstanding debts
Take a look at your late loved one’s finances and determine what needs to be paid right away to avoid late fees, high-interest rates, or other hidden fees. This goes for the mortgage especially.
4. Review personal property
As we’ve said in “The Stress Free Guide: Decluttering Your Parents’ Home,” sorting through personal property and items of sentimental value can be stressful but there are simple steps you can take to take some of the weight off of your shoulders . Once you’ve gone through the personal items and cleared clutter, you can then consider an estate sale.
Stress Free Estates offers estate liquidations & buyouts as well as hosting estate sales inside the home. These can be great options if you plan on selling the home unfurnished or just want to lighten some of the load that still remains inside. SFE even purchases home furnishings piece-by-piece.