There are a few subs that this could go in so let me know if I should repost somewhere else.
My (28F) grandma is almost 102 years old. She’s not going to live forever. I was sent the will yesterday and I will be inheriting her home.
The home was built a long time ago. No mortgage. It’s very outdated and in rough condition, but livable. My dad is living there and taking care of her currently.
I’d like to be prepared when the day comes. I do not want to live in this house. I want to sell it and then buy my own home for the first time. What is this process going to look like? What taxes will I have to pay upfront to inherit the home and call it mine before I sell? It’s in a desirable location, so even though the house is not in amazing shape, the lot is worth something!
Any advice on this is much appreciated so thank you in advance!
Will be inheriting a home. Need advice.
byu/breezyspell inRealEstate
Posted by breezyspell
9 Comments
Take care of your grandma
First thing, speak to an estate planing/probate lawyer in your state. If she wants to leave you the house there might be better ways then through the will– like a trust etc, all depends on her and your situation.
Second, speak to a CPA. Everyone’s personal income and finances are different and we can’t know what your tax liability will be.
Why is your dad not inheriting the home?
Talk to an attorney/tax advisor first
You will inherit the home at the stepped up value, meaning no capital gains taxes, but this still may not be the best way to do it.
Your family should be trying to keep the estate out of probate. This means that it might make more sense for your grandma to put it into a trust with you as the beneficiary. When she dies, it will pass to you, at the stepped up value, outside of probate. The family should see if all the assets can be managed so that no probate is triggered.
Then you sell the home. Use a realtor, list it on the MLS, no matter what anyone else tells you. There will be some transfer taxes, but no capital gains taxes.
Don’t put any money into fixing it up. Sell it as-is.
Is your father going to be willing and able to move out?
Honestly, problem one is likely to be your dad, who is living there and taking care of his mom. Before you talk about any kind of sale, you’ll need to be clear with him as to what the expectations are after his mother has passed. If she’s 102, he can’t be much younger than 60 and maybe a lot older, so what is the plan for him?
As for the sale itself, if it’s willed to you that should be easy enough. The sale can be as easy or as difficult as you want it to be depending on what you price it at.
I would have a home inspection done and see exactly how much of the “rough shape” is structural and how much is aesthetic. It will make a gigantic difference in what you will see as a return.
The lot alone probably isn’t worth as much as you think, even if it’s a good neighborhood, unless there are new zoning laws that prohibit building except for grandfathered properties. The value likes in the house if it is structurally sound and can be remodeled.
What state is this in?
What state do you live in?