Guide to Selling an Inherited Home if You Live in Florida
Inheriting a Florida home can be a daunting experience, especially if you are not sure what to do with it. First you will need to have a clear understanding of how you inherited the home; was it by will, trust, or deed? How you inherit the home will essentially determine your next steps.
How Did You Inherit Your Florida Home?
Knowing whether you inherited the house by will, deed, or trust is important as each way has its own rules and regulations.
Inheriting by Will
Inheriting a house by will in Florida means that someone who passes away has left you, the beneficiary, ownership of the home. If you plan on selling this home, you will need to go through the Florida probate court. After you file for probate, you will need to wait about 4-6 months for the title to clear before you can sell the home.
Inheriting by Deed
When someone leaves the house to you in their deed, you become the “remainderman” for the property, meaning you own the house when they pass. Unlike with a will, you do not need to go through probate proceedings. Since your name will be on the title, selling the home should be pretty easy.
Inheriting by Trust
You can inherit a home by trust If the trust agreement of the deceased lists you as a trustee. You and any other heirs will need to open a probate before you can move forward with transferring the legal title to your inherited assets.
Selling a home you receive via trust can be a little complex. A title examiner needs to confirm that the property is clear of any creditor claims. Some individuals will create a living trust to help their beneficiaries avoid probate procedures.
A trust document needs to be created by the living person naming a trustee to take over the property after their death. The most important part is that the living person creating the trust transfers ownership of their property to themself as the trustee. When you pass on, the property is under control of the trust’s terms and the beneficiary can transfer ownership without probate.
Dealing with Probate on an Inherited Home in Florida
Inheriting a Florida home through a will usually requires filing for probate so that the property ownership records can be verified. The process can be very quick or extremely slow depending on how long the person has been deceased for.
For example, if the original owner passed away more than two years ago, then it can take less than a week in some cases. However, if the person died recently and you are looking to sell the home, the process can be slower. This process is slower since you have to publish the notice to creditors in the newspaper and wait up to four months before selling.
The reason for waiting four months after giving notice is so any and all creditors have the chance to file a claim.
Inheriting a House in Florida with a Mortgage
If there is an unpaid mortgage on the house you inherit, it will foreclose. You can pay the mortgage on behalf of the person who has passed away since the processors only look at the check and mortgage numbers. However, the mortgage company cannot force you to pay the full mortgage once you inherit the property.
Garn St. Germain Act
Under the Garn St. Germain Act, a mortgage company cannot require that you pay off the entire mortgage at once. According to Florida state law, the new owner is not responsible for paying off the debts of the deceased.
Walking Away From an Inherited House
If you inherit a home with a mortgage you cannot pay for, it will go into foreclosure. However, Florida law allows you to disclaim any interest in the property. A probate attorney can help walk you through the process to make things easier. Other reasons to disclaim interest include: avoiding inheritance taxes, creditor protection, affecting their qualification for federal benefits, and more.
What Happens When Several People Inherit a Floridian House?
Inheriting a house with multiple people can be difficult to navigate, but it can work. In Florida, co-owners are each responsible to pay their part in property taxes. After the house is sold, the income should be equally divided by each beneficent.
Does Inheriting a Florida Home Affect Your Taxes?
If you own a home in addition to your newly acquired property; expect to see your property taxes increase. In some states inheritance tax (otherwise known as estate or death tax) applies based on the wealth of the person who has passed.
How Can You Sell an Inherited Home in Florida?
Selling a home you inherit in Florida does not have to be difficult. There are at least three different options you have when it comes to selling including: enlisting a realtor, list the house yourself, or sell to professional home buyers.
Selling Your Property With a Realtor
Choosing to sell your house with a local realtor is a popular option. Ask some nearby probate attorneys for recommendations on realtors who have experience with selling inherited properties. If selling with a realtor, prepare to shell out some money in order to get the home up to market value.
Listing the Home Yourself
If you want more control in selling your inheritance, then you may want to list the property yourself. This is a time consuming project but allows you authority when it comes to showing and staging the house, marketing it, and screening potential buyers.
Selling to Professional Home Buyers
If you’re looking to sell an inherited home quickly and easily, then you may want to consider selling to a professional buyer. You can relinquish responsibility while still receiving a profit; in some cases instantly when paid in cash. You can avoid liens, the probate process, repairs, and more when dealing with a cash buyer in Florida.
Selling an inherited house depends greatly on how you inherit the house. Taking possession of a house is a huge responsibility, so remember that in Florida you have the right to disclaim interest in the property.
When you inherit a home, you have a few choices to make. These include: walking away/let the home foreclosure, sell, rent, etc. You need to decide in a timely manner since title and management issues can escalate quickly.