Inheriting a property can be a huge responsibility, especially if there are multiple heirs and you weren’t planning on inheriting the home. And unfortunately, not a lot of people know what to do once they inherit a home. Moreover,selling an inherited property can be a huge, time-consuming challenge, especially if ownership is divided amongst siblings or relatives.
If you’ve recently inherited a home and you’re wondering, “Can I sell my house fast in Maryland when there are multiple heirs?” don’t worry—we’ve got your back. Use this FAQ so you know the ins and outs of selling an inherited home. Once you go through all the questions that are answered below, you’ll know which selling option is best for you.
Can You Sell An Inherited Property?
Yes, but there are some things you need to keep in mind. For one, you cannot sell the house during the probate process. And during this time, all legal heirs are responsible for maintaining the home. They must pay utilities, property taxes, and other bills. Once the probate process has concluded, you can sell, but discuss this with other heirs first.
What Kinds Of Property Can You Inherit?
People don’t just inherit houses. You can inherit other assets, like cars and clothing, from a deceased relative. When an individual inherits a house, there’s a lot more entailed. Yes, this could be the case when you inherit another form of property, but typically inheriting a home is the most involved process. Here’s what else you may be able to inherit:
- Cash, stocks, bonds, and other financial instruments
- Intellectual property, including patents and copyrights
- Personal belongings like clothing, furniture, jewelry, and cars
- Commercial buildings and undeveloped property
When Can You Sell An Inherited Property?
As mentioned above, you can sell an inherited property any time after probate is over. But all legal heirs must agree to sell the property when there are multiple heirs. If everyone is on the same page, you can sell the home quickly to cash home buyers in Maryland and then divide the proceeds among all legal heirs.
There are, however, situations where an inherited property can be sold before probate is over. This happens in cases where there is no formal will or if the estate doesn’t have enough cash to pay outstanding debts.
To give an example, let’s say that your grandmother promised she would leave you her house. However, she never made a will, so there’s no documentation of this promise. The property could then be sold during probate to pay outstanding debts against her estate.
Can Siblings Force The Sale?
Suppose there is more than one heir. In this case, the majority rules. If most of the legal heirs are ready to sell the home, or the estate requires more money to cover outstanding debts, the sale happens during probate.
If the legal heirs cannot agree, you can file a partition action in probate court to force the sale. You might have to hire a real estate attorney to help with the process at this stage. The proceeds from the sale will be distributed amongst all legal heirs. Even if one beneficiary objects to the sale, they’ll still get their share of the proceeds.
What’s The Tax Situation When Selling An Inherited Property?
Selling an inherited home is taxable and the IRS will treat this sale as profiting from an investment. You must pay capital gains tax if the selling price is higher than the home’s value when it was inherited. If you sell the house immediately, you’ll have to pay short-term capital gains tax, which can be anywhere from 10% to 37%. If you sell the property after a year, the long-term capital gains tax can be anywhere from 0% to 20%.
Get Expert Help When Selling An Inherited Property In Maryland When probate ends, you’ll have to decide whether you want to keep or sell the property. Reach out to us today or chat with one of our team members to sell your inherited house the easy way! Connect with Maryland Cash House Buyers to get a fair and free cash offer. Check out the areas below where we buy houses in Maryland.