Selling an Inherited Property in Georgia

Getting a property through inheritance can be hard, both emotionally and financially. Is the house in need of costly repairs and upgrades? What will the tax costs be? Is there a will, or will you have to go through probate? However, an inherited property can also be a fantastic chance for real estate investors and buyers who want to find a property at a lower price that they can customize. So, what do homeowners need to do to sell an inherited property? Are there specific steps involved in this type of sale? This article will outline the process of selling an inherited property to help you aim for a profit.

How To Sell An Inherited Property in Georgia

You just received a property as an inheritance, and you’re wondering what to do next. In most states, the inherited property needs to go through probate. This is a legal process where the court decides who the rightful owner is. During probate, the court officially hands over the estate’s assets to the designated beneficiaries or heirs. The speed of this process can vary a lot, depending on whether there was a will and the rules of your state.

Determine the Executor

If you have an inherited property that comes with a will, choosing the executor of the estate is usually a clear-cut process. A key part of a will is naming an executor who will ensure the wishes of the person who passed away are followed during probate. Until the Court approves the will, none of the assets can be sold. However, after the Court gives the green light, the executor can start carrying out the wishes laid out in the will. If someone challenges the will or if there isn’t a will in place, things can get more complicated and might take longer as the Court steps in to sort it out.

Working with Lawyers and Real Estate Agents

Probate can be a very tricky process, so it’s important to have a skilled lawyer by your side to help you through the challenges of selling a home you have inherited. (Lawyers aren’t created equal so I highly advise vetting them just as you would any other company. A bad lawyer can delay the process.) After receiving the go-ahead from the probate court to sell the property, the next wise move is to work with a real estate agent, not just any agent but one who has experience with inherited homes. A knowledgeable agent who understands the ins and outs of probate sales can provide you with valuable insights into the rules and regulations involved. They will assist you in finding the right buyer, ensuring you receive the best price for the inherited property. Moreover, they can advise you on what repairs and upgrades are worth your time and money, versus what might just be a waste. Taking their guidance can make a big difference in whether you sell a property quickly and profitably or end up with a house that lingers on the market and sells for less than its value.

Resolve Any Debts

When you think about “inheritance,” do you picture a long-lost relative leaving you a fancy mansion in the woods? Or do you realize that inheriting a property can come with some tricky issues? You might have to face problems like liens on the title, unpaid taxes going back years, or a mortgage that could eat up any profit when you sell. Unfortunately, after losing a loved one, you often also have to handle their debts, whether that’s taxes, loans, or maxed-out credit cards. Before you get any money from the estate, any assets you inherit need to be used to pay off those debts. Although a house can look like a valuable asset, it can also turn into a costly burden. A skilled estate advisor can guide you through your choices when managing an estate.

Clean & Restore the Home

After you’ve taken ownership and the property is now yours, the next choice is to decide if you want to live in it, rent it out, or sell it. Often, when someone we care about passes away, they may leave behind a home that isn’t in great condition. Whether the house hasn’t been maintained for years and needs a lot of cleaning and repairs, or if it hasn’t had any updates and requires a full renovation to be ready for the market, this part of an inheritance is something many people overlook.

Do all heirs have to agree to sell the property?

No, the Heirs are not required to all agree to sell a house or property that they inherited if a will or the probate court has already confirmed who owns it. However, if ownership isn’t clear—like in cases where there is no will or a Court-appointed administrator is involved—then all Heirs must consent to the sale. This also applies to properties auctioned off by the Court to clear the estate’s debts. If a buyer wins a house at auction, but one or more Heirs do not agree with the sale, the purchase will be delayed until the disagreement is resolved and an agreement is made.

How to Settle a Disagreement

When family members disagree about an estate, there are several ways to solve these issues. The first thing you need is an executor. This person is in charge of making sure that your loved one’s wishes, as written in their will, are carried out properly. Having someone responsible can help prevent any arguments about what to do with the estate’s assets. If there isn’t an executor or the will is being challenged, hiring a mediator might be the next best step. A mediator is a neutral person who can help settle differences, and using one can save a lot of money compared to going to court for probate.

Best Practices

What if the problem comes from the executor? Sometimes, when a family member is chosen as the executor or trustee of a will, it can lead to disagreements among family members. If you find yourself in this situation, one option is for that person to refuse the role. They can then select a neutral professional, like an estate-planning lawyer, to handle the will. Allowing a third party to take over can help prevent fights and give everyone a chance to process their feelings without causing long-term damage to family relationships. 

How is inherited property taxed when sold?

In 2020, state and local governments across the United States collected more than $5.3 billion from estate and inheritance taxes. That’s quite a number! Since tax laws vary state to state, it’s important to do some homework and talking to the right experts. If you find yourself facing an unexpected inheritance or if you’re in the process of creating your will, reach out to a lawyer who understands taxes and estate planning well.

State Tax Laws

Every state has its own rules when it comes to inheritances. If you decide to sell a property you inherited, your state might charge an estate tax, an inheritance tax, or even a capital gains tax on that inheritance. Right now, there are twelve states that impose an estate tax, five that have an inheritance tax, and one state that applies both an estate and inheritance tax.

Capital Gains Tax on Inherited Property

What is the capital gains tax and which states require it? The capital gains tax is paid on the appreciation of any assets that an heir inherits through an estate but it is only levied once the asset is sold for a profit, not when you inherit. This tax is then paid on the difference between the sale price and the purchase price of the property. Most states require this tax paid on an inherited property, but there may be exemptions for individuals selling a property for less than a certain amount. An example is Washington State, where the capital gains tax is not levied on homes and/or properties sold for less than $250,000. There may also be other legal ways to get around or reduce the capital gains tax in your state, including reinvesting the money in another property. Consult with a tax lawyer knowledgeable of the laws in the area you will be selling before proceeding with the sale of your property.

Estate Taxes

An estate tax is a tax paid directly out of the estate to the state before anyone is able to inherit it. Worried that you might get a huge hit taken from the estate? Don’t worry! The estate tax has a minimum threshold which in 2023 was $12.92 million for individuals. This means that the government is not able to charge you an estate tax unless your total taxable estate is worth $12,920,001. The remainder is passed on estate tax-free. Despite having such a high threshold, each year more states repeal their estate tax laws, losing out on millions of dollars of revenue.

Inheritance Taxes

Only six states have an inheritance tax, meaning that it is likely that you are in the lucky majority that won’t have to deal with this. But if you live in one of those six states – Maryland, Nebraska, Kentucky, New Jersey, Pennsylvania, and Iowa – you as a beneficiary/Heir to an estate will be required to pay taxes on your inherited assets and properties. But don’t worry – even if you live in a state that has an inheritance tax, you won’t have to pay a dime if the deceased lived in one of the 44 states that does not have this tax.

Documents required to sell an inherited property

To show legal ownership and place a property for sale, you will need to have a copy of the documents issued by the court that grant you the legal authority to act as the executor or administrator of the estate. These documents will establish your ability to manage the inherited property. Once a buyer is found and you are ready to close, you’ll need the deed, title insurance, or other relevant legal records to establish the legal ownership of the inherited property. 

Do your research regarding what additional documents may be needed to sell an inherited property! Some jurisdictions may require additional property-related documents, including previous surveys, inspections, or any other relevant paperwork that pertains to the property’s condition or history.

Is there an easier way to sell?

Yes, there is! We Are HomeBuyers is a direct house buying company that has built our reputation on buying inherited houses for cash with less stress and less fees. Contact us today and get a competitive cash offer for an inherited house, condo, or property. We buy homes in any condition, and we can also help with the convoluted process of selling a house in probate! Let us make your home selling experience as straightforward and stress-free as possible so you can move on with your life.

Even if the house suffered major damage in the last storm or was neglected for years and needs a large amount of upgrades to make it “market ready”, once you accept our fair cash offer our team of experts will handle all of those expensive repairs so you don’t have to! We make selling an inherited house easy.