Selling any property can be stressful and there are many pitfalls to avoid. However, when you are selling a property that you have inherited, there are even more things to be aware of.
There are special legal and tax implications associated with selling property that you have inherited. Here are five tips that will help you avoid making any costly mistakes.
Establish an executor for the will
The initial stage is to ensure that the will specifies an executor who will manage the estate of the deceased person. It is also important to be clear about who the beneficiaries are – these are the people who will inherit the property. If there is a shared ownership situation, this can be harder.
Then it is necessary to apply for probate from the Probate Registry. There are advisors who can give you useful information about probate and help you through the process.
Make a probate application
Once you have the information about probate that you need, the executor will be given the legal authority to access the deceased bank accounts and investments. In general, the probate takes around six to eight weeks to be granted. However, it can take up to six months for all the estate to be wound up.
Get plenty of advice
Solicitors are often used to give legal advice on probate matters. They can take over a lot of the paperwork for you. If there is a dispute between family members, it may be the best option. At this time, it may be necessary to get property valued and to ask a chartered surveyor to identify any structural issues that could affect the value.
Check the tax implications
You may need an accountant to estimate your inheritance tax liability. Rates and allowances change all the time so you need an up-to-date estimate. Other taxes, such as capital gains tax, may also be due and will need to be paid from the estate.
Get advice on selling
Get some advice on whether you should carry out works to the property before selling it. Depending on the local market at the time, this could result in you getting more money for the property. However, this will take time and effort and you may prefer to go for a quick sale. A property expert can advise on which works would be most cost-effective.