Selling Inherited Assets

Often times inheritances can cause many issues when it comes to dividing up assets. Most people have one very large asset that is hard to divide among everyone, and that asset is their house. The need to sell inherited assets will often arise when parents have made multiple children as the beneficiaries of the property. When multiple siblings jointly inherit a property, it can be hard to decide what to do with the property, so most of the time the siblings will decide to sell it and split the consideration received. If you have found yourself in a situation that requires you to sell inherited assets, then this guide is for you, as we will go through the most important things to consider when selling inherited assets. 



Understanding Probate

All assets that are passed on through an inheritance must go through a process called probate. This is a legal process that must take place before a deceased individual’s estate can be distributed. The probate process can often take some time, but once it is over, the executor of the will be able to proceed with the asset distribution process.

Deciding to Sell

If you have inherited some assets that you are thinking of selling, you must first come to an agreement with all the other stakeholders that now have an ownership claim on the particular asset in question. Problems can arise when some parties want to sell the asset and others want to keep it. Coming to an agreement with all parties involved is an important step when it comes to selling the inherited asset because you do not want to face any legal problems down the road with an upset party. You should have a lawyer write up a contract for all parties involved so that everyone knows what is going on and so that the contract is legally binding and will hold up in court. Once you have come to an agreement, you can proceed with the next steps, which is marketing your asset for sale. 


Selling the Inherited Asset

Once all parties have agreed to sell the asset and your agreement is signed, it is time to market your asset for sale. When it comes to selling inherited assets you will want to make sure you are familiar with what the fair market prices are for the asset you are trying to sell. If you are selling an inherited home in California, reading through these tips at https://socalhomebuyers.com/selling-inherited-house-in-california/ is a viable step to ensure the condition of your property will appeal to buyers in the market. For example, you may need to update the flooring in your inherited property so you can get the most out of your property when the time comes to sell it. If you are trying to sell other kinds of inherited assets you will want to contact an expert that will be able to help you sell your assets so that you can get the best possible price.


Taxes

Once you have sold your asset you may be excited to split the money up with all the parties, but before you do that you may want to consider taxes. The amount of taxes you will have to pay after selling assets will depend on a few factors. Firstly, it will depend on whether or not you live in a state with an inheritance tax. Some inheritance taxes will tax the beneficiaries and some taxes will be on the deceased individual. Other factors that will determine the amount of tax you will have to pay is the relationship you had with the deceased and the adjusted cost base of the asset before disposition. The taxes that apply to inherited assets can be difficult to understand and it is recommended that you speak to a tax professional that is knowledgeable in the subject of selling inherited assets. 
Taxes

If you have found yourself in a position where you need to sell an inherited asset, remember to always consider the opinions of all the parties involved. If everyone has decided that they would like to sell the asset make sure you have a written agreement that is drafted by a lawyer before you start the selling process. Once you have an agreement in place with all parties you should speak to a professional that will be able to help you sell your assets at fair market value. Also, do not forget to consider the implication of taxes when you are selling your inherited property. If you follow these tips you will avoid any surprises when it comes to selling your inherited property.