What happens when more than one child has an equal share to a property left in a will or estate by their parents? Depending on the family dynamics. Each sibling can have different agendas for what they would like to do with the property. The problem could also arise when all the beneficiaries have to take care of the house’s upkeep—taxes and pay bills.
What would be the most likely scenario if you were in this situation with your siblings? Would you stay in the property left by your parents and pay rent to the siblings? Or would you and your siblings rent the property out and share the proceeds?
When you inherit a house with your siblings, the easiest way to share it is to sell it and split the proceeds.
There is a process to sell your inherited property in Pinellas County with your siblings. We will outline them in the steps below:
Understanding the Probate Process In Pinellas County Florida
Probate is simply the transferring and evaluation of the assets of a deceased person. It is a process that involves sharing the deceased assets among beneficiaries and settling any debts of the deceased.
Nonetheless, the beneficiaries have now gotten the deceased property from a seamless probate process. Note, however, you can live in the house while the property is still in probate, but you can’t sell it until the probate process is complete.
Agreeing To Sell The Property In Pinellas County Florida With Your Siblings
After the probate process, the house belongs to you and your siblings; hence you would treat it as a shared asset. If you and your siblings agree to sell the house, you can sell the property now and split the gains. The executor would either be you or one of your siblings. An estate planning attorney is needed in the process.
On the other hand, if one of your siblings decides to hold onto the property for any reason without the others in agreement. Things can get tense.
Fortunately, there are three ways you can sell the property and split its proceeds.
● All of you agree to sell it
● One of the siblings buys every other siblings’ share
● The sibling who is the main executor of the trust or will forces sale
Note, however, you and your siblings can decide to keep the house equally shared among yourselves and not sell it if you choose. There just has to be clear communication on the best solution for all those involved.
Preparing To Sell Your Inherited Property In Pinellas County
After going through probate and coming to an agreement between you and your siblings. You can go ahead and prepare to sell your inherited real estate in Pinellas County Florida. Some of the popular options are;
● Traditional Estate Agents
● Auction House Sale
All of the three options above have their advantages and drawbacks. Carefully inspect all the options and ensure that you get as much ROI and benefits from your choice.
How to Buy Out Your Other Siblings For Inherited Property In Pinellas County Florida
Unless the deceased will state the contrary, you can buy out your other siblings’ shares on the property. When you inherit a house with your siblings, it means that you and your siblings have equal shares of the property.
So, the process is simple. You buy over their share of the house, and they will sign the deed over to you. Also, you would need to pay closing costs and get an appraisal to estimate the house’s value.
More so, you would organize a private meeting with your sibling(s). You would spell out the amount you would pay for the other shares of the property plus the interest rates if you want to pay monthly till the property is paid off. More so, put it down in writing to avoid any future confrontation. Note, a deed of trust is needed to recognize the agreement.
Selling the Inherited Property In Pinellas County Florida and Dividing the Cash With Your Siblings
If you and your siblings(s) have decided to sell the property, you can go ahead with it. You can use any means listed above. After selling the house and settling the debts, you and your siblings can split the remaining proceeds equally.
Exploring Inheritance Tax Considerations In Pinellas County
An inheritance tax is a tax you pay to the state when you receive property or money from the deceased’s estate. More so, when the beneficiary inherits real estate property, they are expected to pay for its rental tax as well. You can learn more about Pinellas County Florida Inheritance tax law here.
The IRS also considers inherited property an investment, so you are liable to pay capital gain taxes when you sell the property. If you rent the house out, IRS collects income taxes on the rents. Other taxes like property taxes and federal taxes are considered as well.
Keeping Your Inherited Property as Investment Property In Pinellas County
Instead of selling the inherited property, you can use it as an investment. Although this comes with taxes as stated above, it also comes with some benefits. You can rent it out or set it up for airbnb to earn extra income.
If you just became a landlord or a host, here are some things you should consider.
● If there is any mortgage, refinance it in your name.
● Inspect the property and make the necessary repairs.
● Make any upgrades that would add value to the property.
● Get an insurance policy that covers landlords.
● Set your tenant and guest policies before renting or placing on airbnb.
● Finally, you have to prepare your residential lease agreement.
If you don’t want to sell the property, becoming a landlord or host could be a good option. You can hire a property manager to monitor the property you rented out if you don’t want to manage it yourself. If you hire an independent contractor. Make sure to sign a service agreement to protect your interests.
If you have inherited real estate property in Pinellas County Florida with your siblings. An agreement between all of you is needed after clearing probate if you decide to sell or rent so that there is no confusion or misunderstandings for the intentions of the property.
Nonetheless, an inherited property can be a way to build wealth for you and your siblings if you choose—either you sell it or rent it out. Whatever you decide. It is always best to communicate clearly and state your opinions with your siblings so there is no confusion and everyone is on the same page.