Transferring Inherited Properties to Beneficiaries?

2020 has shown us a true definition of change. Transferring inherited properties  adds extra layer of stress to you, in such a time when we’ve all had enough to deal with. Knowing the most common, reliable, and powerful ways to transfer or receive a piece of inherited property is hugely important, especially with expediting the process. Here are two most common estate planning tools (Wills and Trusts), alongside with what may need to happen, if these preparations aren’t made ahead of a decedent’s passing (Probate).

Wills

One of the most common ways a property is transferred from one party to another is through a Will. Every adult should have a Will, regardless of assets. The absence of a well-defined Will may require bringing the courts into play to facilitate the “fair” distribution of the decedent’s assets. Dealing with the courts can be time consuming, expensive, and potentially stressful on family relationships. If, however, a Will is written and set up correctly, it leaves no doubt as to what, where, and who of the asset. The person named as the recipient of property through a well is often called a “beneficiary”.

If you’ve been named as a beneficiary of a property, you may be liable for the mortgage payments, taxes, and outstanding liens on title for the property received. The first thing to do as a beneficiary is to reach out to a local real estate attorney to sort out several legal items that need to be done, then you can consider renting or selling the property.

Trusts

Another common way of transferring title to a surviving family member is called a “Trust”. While a Will is a legal document in which a person’s assets are distributed among legal heirs, a Trust is an entity that bestows a legal obligation upon a third party (called a “Trustee”) to hold assets for the benefit of another person (i.e. an heir or family member), also called a beneficiary. A person can sign an agreement to put property into a Trust at any time, which can become active upon their passing. The trustor ( the person who originates the Trust and has control) directs the passing of assets to trustee per the instructions outlined in the Trust. If you’ve inherited a piece of real estate via a Trust, you may need to work with the trustee to get it sold. Like every thing else, there are benefits and there are challenges associated with selling an inherited property.

No Will or Trust in Place?

While Wills and Trusts are two common vehicles for estate planning, they are not necessarily the only ones. There are other tools that guide how property can distributed among family including joint ownership, tenants in common or a transfer on death deed just to name a few. If any and all of these options were not planned for, or set up in advance, the property will likely go to Probate Court.

We can help streamline the process of selling your inherited property by submitting a cash, as-Is offer for the property that puts you and your family in a better position to sell the property quickly, with less headaches.

What is Probate and what does it cost?

Probate is the process by which local courts step in to help distribute property of someone who has passed. If no estate planning instrument like the ones above is in place to guide the distribution of Assets, the property may be subject to Probate. Probate is often seen as the least ideal of all scenarios as it can be more costly in terms of time, cost and privacy.

Inheriting a property from a spouse, parent or distant relative can be very challenging, requiring a lot of thoughtful planning, money, and communication to prepare an inherited property for rent or sale. 

The good news is that we can help by submitting a cash, As-Is offer for the property that puts you and your family in a better position to sell the property quickly with less headaches. Reach out to us today to see how we can help!