If you’ve recently come into ownership of a house that was inherited, you may not be prepared to deal with the questions and complications that can arise from it. If you make poor decisions, you will likely face financial, emotional, and familial problems down the road.
If you are inheriting a house in Maryland, or Cockeysville specifically, it is important to be aware of the potential problems that could arise.
What Can Go Wrong When You Inherit a House in Cockeysville MD?
There are Back Taxes Owed
The estate tax is a complicated issue that most people don’t have to worry about because the exemption is so high. The step-up provision was suspended in 2010, but has since been reinstated. This provision is important to consider if you inherit a house in Cockeysville and plan to sell it, as it can affect the capital gains tax you will owe on the sale. You’ll also want to be aware of tax scammers so you can any avoid potential probate scams that could lead you to loose the inherited property entirely.
The step-up in basis allows you to pay capital gains taxes only on the gains above the fair market value at the date of the decedent’s death. It has nothing to with the price the decedent paid for the house – unless the step-up falls in one of the years when it was changed. In that case, you may owe more in taxes than you anticipated.
Remaining Mortgage Balance is More than Expected
In the past, it was common for an elderly person’s mortgage to be paid off when they passed away. Nowadays, however, many elderly people take out reverse mortgages to supplement their insufficient retirement funds.
It is important to be aware that a reverse mortgage cannot be taken over by heirs. With a standard mortgage, you can only assume the mortgage if you live in the house. Therefore, if you plan to rent the house, you may have to get a new loan in your own name.
Inherited House Needs a Lot of Repairs or Updates
When you inherit a house in Cockeysville, there are many potential problems that could arise. One of the most expensive problems is when the previous owner was elderly and did not keep up with maintenance or upgrades. Many people do not have the money to pay for these things, or they may choose not to because they know they will not live in the house for much longer.
If you’re inheriting a house, you may not have to worry about making repairs. But if you’re planning to sell or rent it once you’ve gone through probate, you’ll need to spend money on upgrades to make it presentable and meet legal and insurance requirements. This could include installing a new HVAC system or re-wiring the house
Tension Among Heirs and Family Members
If there are multiple heirs, that can be an issue. For example, if you and your siblings inherit a house jointly, and you want to sell it but your brother wants to rent it, and your other brother wants to live in it, that can be a recipe for conflict.
If one of the joint heirs of a home wants to sell the property, they can do so, but the process is expensive and it may cause negative consequences within the family.
If you’re not familiar with tax laws, mortgages, and upgrade issues, inheriting a house in Cockeysville can be complicated. To avoid problems, it’s best to talk to a qualified professional.
Sell My Inherited House in Maryland
Our Maryland house buying company buys houses in Cockeysville, MD for cash. We work with homeowners in any situation and can answer any questions you have about selling your home. We want to make the process as easy as possible for you so that you can move on with your life.
We’re ready to help you reach your real estate goals and will be glad to answer any and all questions. Contact us by phone at (410) 870-9228 or fill out the online form below.
Fill Out The Form To Get Your FREE, No-Obligation Cash Offer
We buy houses in Maryland houses AS-IS and can close fast!
You pay no commissions, no closing costs, and do not have make any repairs