We Buy Houses In Cornelius North Carolina. As reputable homebuyers in North Carolina, we help homeowners sell their property fast by offering to them cash for houses in Cornelius. If you’ve suddenly inherited a property, you may not be prepared for the questions and issues that can arise. And if you make the wrong decisions, you will likely encounter financial, emotional, and family problems before long.
Forewarned is forearmed, they say, so here’s some of what can go wrong when you inherit a house in Cornelius NC.
You May Owe More Taxes In Cornelius Than Anticipated
Most people don’t have to worry about estate tax because of the very high exemption (in the millions), and the estate tax was even temporarily suspended in 2010. But also mostly suspended in 2010 was the step-up provision. So in considering what can go wrong when you inherit a house in Cornelius NC and when you intend to sell it, you need to consider the stepped-up capital gains situation.
The step-up provides that you 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 a lot more in taxes than you bargained for.
The Mortgage In Cornelius North Carolina May Be Bigger Than You Thought
Generally in the past, when an elderly parent or relative passed, the mortgage on their house was paid off. These days, though, it’s common for elderly people to take out a reverse mortgage on their home to supplement insufficient retirement funds. You need to be aware, then, that a reverse mortgage cannot be assumed by heirs. And in the case of a standard mortgage, you can assume the mortgage only if you live in the home yourself. So if you intend to rent the property, you may have to refinance it in your own name.
The North Carolina House May Need Repairs and Upgrades
With respect to what can go wrong when you inherit a property in Cornelius NC, this one may be the most costly. Most of the time, people inherit a house from a deceased elderly parent or very close relative. Besides not having the physical ability to perform maintenance and upgrades in your home, many elderly people don’t have the money for it either. And if they do, they may simply choose not to because they know they won’t be living in the home very many more years.
If you plan to live in the inherited house, this may not be a huge concern. But if you intend to rent it or sell it, you’ll have to make repairs to make it presentable and upgrades to bring it up to code and meet other legal and insurance requirements. Installing a new HVAC system or re-wiring the property will involve a big chunk of money.
You May Have Problems With NC Relatives And Joint Heirs
But what if you’re not the only heir? That can be a problem. Suppose you and your siblings inherited the property jointly. If selling an inherited house is your choice, but your brother may want to rent it, and your other brother, to live in it himself. You can see what a powder keg waiting for a spark is. In most states, joint heirs of a home are considered tenants in common, and one heir can force a sale if it comes to that. The process, however, is expensive, and the emotional and familial consequences are likely to be highly unpleasant.
Sell My House In Cornelius NC
So what can go wrong when you inherit a property in Cornelius NC? Quite a lot, actually, if you’re not up to speed on tax laws, mortgages, and upgrade issues. It is best to contact a qualified professional to help head off this issue quickly. Or, you can just directly sell your house in NC to professional North Carolina home buyers like us here at Property Solutions, LLC to get stress-free from the property you inherited.