Did you know that according to a wealth manager at United Income, trillions of dollars are expected to be inherited in the coming decades?
Although middle-class Americans won’t be inheriting as much as the wealthy, it’s still important that everyone is knowledgeable about how to proceed with an inheritance. A smart homeowner will be able to make the best decision for themselves and their family.
Read on for our simple guide on what to expect with home inheritance and how to remove the stress from inheriting a house!
Once the owner of a property passes away, the insurance policy should be rewritten within approximately 30 days.
Some insurance companies will continue covering the property as long as you keep sending payments.
You’ll need to continue making payments towards the mortgage if it wasn’t paid off by the estate already. Otherwise, the house will go into foreclosure.
If you’re not sure whether there’s still a mortgage, you can request a credit report of the person who passed away to see if they had any outstanding loans.
You can also check the home’s title. Next, you’ll need to contact the lender. They’ll verify the death certificate as well as whether you’re an heir to the home.
You’ll also want to look for whether the property has a due-on-sale clause. This means that you’ll need to pay off the mortgage in full when you inherit the property or choose to sell it.
Inheriting a home can be complicated, but this complication doubles if multiple people are written to inherit the home.
If you want to keep the home while the rest of the inheritors want to sell it, you can buy out the other heirs through refinancing.
If everyone wants to keep them home, consider fixing it up in order to rent it out or to keep it as a short-term vacation rental. You can then share the profits.
Selling the Home
Selling your home may be the best option for you if you don’t want to deal with mortgages and repairs for multiple houses.
Services such as I Buy IL can purchase homes with cash quickly if you’re eager to get this extra stress off your back.
Keep in mind that you’ll need to pay for capital gains taxes if you manage to sell the house.
Inheriting a House: Do Your Research
If you anticipate you’ll be inheriting a home soon, make sure you start doing your research sooner rather than later.
First, decide whether keeping or selling your home is the best option for you. Keep in mind that you can also keep the home to rent or as a short-term vacation home.
Inheriting a house can be a boon for your life if you know what to expect. Keep reading our blog for more ways you can prepare ahead when it comes to finances!