Can I sell my inherited house before probate is completed in NC?
- Denise Davis
- Feb 4, 2023
- 5 min read
Updated: Aug 16, 2024
Denise Knows Probate!
Can I sell my inherited house before probate is completed in NC?
If the home you inherited has been included in probate, I'm sure the question "Can I sell my inherited house before probate is completed?" has come to mind.
It is possible to sell an inherited house before probate is completed; however, there are some important legal implications to consider. You should be aware that this can be a complex and risky process, with different laws and regulations in each state. In North Carolina, there are specific guidelines that must be followed to ensure the validity of the sale.
This article will provide a comprehensive overview of selling an inherited house in North Carolina before probate is complete. We will discuss the legal implications and steps to take, as well as potential benefits or risks associated with this action. Additionally, we will advise executors on how best to proceed.
So if you're looking to sell an inherited house before probate is complete in North Carolina, let's dive in!
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Denise Knows Probate!
Legal implications of selling an inherited house in NC
When considering selling an inherited house before probate is completed in NC, it's essential to understand the state’s laws and regulations.
The house should continue to receive proper care during this period; for instance, utility bills and real estate taxes need to remain current.
However, according to North Carolina law, heirs of an estate can sell a property without going through probate if all the heirs agree and sign off on the sale. This process should be done with the assistance of a real estate attorney to ensure that all legal requirements are met.
The important thing to remember is that even if the house is included in a will, the will itself must still go through probate.
Many people tend to think that because property or assets were left to them in a will that it immediately becomes their after the death of their loved one. But this is not always true.
The house does automatically transfer to the heirs or the beneficiary upon the death of the decedent, however, If the decedent had debt that needs to be paid and their are no funds to pay the decedent's creditors, the courts may demand that the house and all assets be sold in order to pay off the creditors.
If there are any funds remaining after the creditors has been paid, those funds will pass to the beneficiaries and heirs.
What Types of Property Can Be Inherited?
From cars to clothes, anything can be inherited - and it's all legally classified as property.
Estate Plans help determine how personal belongings, assets, or any other type of possession will be divided up when the time comes.
People usually think of real estate when it comes to selling inherited property. But inherited property can be more than just real estate. Other forms of inheritance property include:
• Bank Accounts: Any accounts held solely under the deceased's name can be inherited. This includes retirement plans, and bank accounts.
• Investments: Anything from stocks and bonds to mutual funds, annuities, and other insurance policies are classified as investments.
• Personal Belongings: Commonly referred to as personal property, these items include furniture, jewelry, artwork, collectibles, etc.
Are Siblings Legally Allowed to Force the Sale of Inherited Property?
If multiple people own a piece of real estate, the first step is to decide whether they should buy each other out or sell the property. If they cannot agree, they will need to get legal help and file a petition in court that forces the sale of the property. This way, all beneficiaries can get what they are entitled to. This process is called a petition to partition.
If the court rules to sell the house, it will be put on the market and sold for its appraised value. Subsequently, any money earned from this sale will be distributed amongst all beneficiaries - even if one heir is opposed to it. However, if creditors or taxes need to be paid, monies will first be distributed to them and then to the heirs.
Do I Have to Pay Tax If I Sell My Inherited Property?
If you sell an inherited property and make money from the sale, you will have to pay taxes. This is called a capital gains tax. The tax you will have to pay depends on how much money you make from the sale and your income bracket.
This property has likely gone up in value since it was first bought by the decedent. This means that the original purchase price is very important. As a beneficiary of this asset, you will not have to pay taxes on the total amount the home is now worth. The IRS will do a "stepped-up" basis calculation to determine how much capital gains tax must be paid.
If you sell an inherited property within one year of inheriting it, you will be taxed at the short-term rate, which ranges from 10% to 37%. If you own the property for more than one year before selling it, your profits will be taxed at the lower long-term capital gains rate, which ranges from 0% to 20%.
Need To Sell Your Loved One's Property?
No matter the condition of the home, if you need it sold, we can help you. We can list it on the market to get you the highest price possible or give you a quick cash offer.
Are There Ways to Prevent Paying Capital Gains Tax When Selling an Inherited Property?
If you are selling a property that you inherited, and you do not want to pay capital gains tax, you can avoid it by making it your primary residence. This means living in the home for two years. After two years, you will not have to pay capital gains tax on the sale of the property.
Contact North Carolina Probate Solutions Today!
If you are looking to sell an inherited property before probate is completed, it can take a lot of work. It's essential to seek the help of a qualified real estate expert and lawyer to navigate the legal implications and regulations of North Carolina state law.
At North Carolina Probate Solutions, we have years of experience helping families through this process. We understand how difficult it can be emotionally and legally, which is why we strive to provide personalized service that puts your needs first.
Contact me today for more information on how I can help you sell an inherited property in North Carolina.
I am here to make sure everything goes smoothly, so you don't have anything to worry about!
Join our Private Facebook group where you can ask questions and get answers, learn from others or share what you learned about the probate process. Be the first to join our new group! Join Here.
Certified Probate Real Estate Specialist Licensed Realtor
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* NOTE: North Carolina Probate Solutions and the author of this article is not a licensed attorney or CPA. This post should not be considered legal or tax advice. Always consult an estate attorney or tax professional when needing legal answers and legal advice.
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