If you are thinking about selling your inherited property, you might be wondering, “Is there a holding period before selling my inherited home?” This article will answer that question and you might be surprised at what you learn…
If you’ve inherited a property in Minnesota , you might now be thinking what to do with this property that I own. And if you’re thinking about selling it now, then you’re probably wondering, “Is there a holding period before selling my inherited home?”
Great question to be thinking about. There are a few things you should know to answer the question…
Is There A Holding Period Before Selling My Inherited Home
Probate Versus Inheritance
In general, an inherited property is what you get when someone passes away and leaves you their property and or estate. Probate is a stage along the way. Probate is a legal process that takes place after someone passes away. It includes: providing in court that a deceased person’s will is actually valid, usually a routine matter, and identifying and inventorying the deceased person’s property. In this case, it’s their home. Distributing the remaining property as the will or state law if there is no will directs. In simple terms– it’s the step of proving the will if they have one and making sure that the right heir gets the right inherited property.
Therefore, if someone leaves you a home and the house is in Minnesota probate, you will not be able to sell it right away. The process of probate is still being proved, and there could be other heirs contesting the will.
However, if probate is complete and you fully own the inherited house, then you can likely sell without waiting. It is best to consult a legal authority on inheritance to determine where you are at in the process before selling.
There Is A Holding Period (But Not What You Think)
There is a holding period with inherited homes, but the holding period doesn’t mean you can’t sell… it’s merely a term used to describe how you will be taxed on the inherited property – and it depends on when the deceased passed away. The holding period starts on the date of the loved one passes away. This Inherited property is considered a long term property. If you sell or dispose of the inherited property that is a capital asset, you will be considered having a long term gain or loss from the property. This long term gain or loss goes into effect when it is held for more than one year, regardless of how long you held the property.
However, in most cases, this won’t prevent you from selling the property. Still, you should talk to a trusted tax accountant to see if the holding period will impact how much tax you pay.
There May Be Other Factors
While it isn’t likely going to be a holding period on the inherited house itself, that will prevent you from selling it after you go through probate. You should be aware that there could be other holding periods that will make the inherited property in Minnesota . These can make it more challenging to sell – such as if the house still has a mortgage with the named deceased on it or some other obligation. But in many cases, these can be sorted out and, in the long-term, shouldn’t keep you from selling. We at Minnesota Cash Home Buyers typically hire a title company to do a title search to determine what leans are on the property and what the amounts are of those leans. This way, we can help our clients learn what is there the best plan for selling the home. Often, the liens on the property can be negotiated, that they will be paid off when the property is sold. Having conversations with each lienholder and determining in writing the amount and timing to pay off each lien at closing is essential. Lienholders want to know that they are being paid. Working with someone who has done this many times will give you confidence in the process and will help eliminate any unwanted surprises.
So, if you inherited a Minnesota house and are now thinking about selling it, and if you’re wondering, “Is there a holding period before selling my inherited home?” then here’s the good news: You probably don’t have to wait to sell it, and you can get that process going right now. However, be aware that there could be other factors that may delay the sale or that could impact the income tax you’ll have to pay when you sell.
Here’s a fast solution for you: If you want to sell your inherited house as quickly as possible, give us a call! We’ll give you a fair, fast all-cash offer to buy your inherited house as-is.