Keep/Sell an Inherited Property in Connecticut

Have you inherited a house? Do you think you should keep the home or sell it? It can be a frustrating experience because you need to consider several factors. The home’s condition, pending debt, the number of heirs and local laws can affect your decision.

Is the House Clear & Free?

You need to collect the financial documents related to the property. Is there any debt tied to the house? An outstanding mortgage can eat up most of the home’s value. Furthermore, there might be secondary loans and equity loans.

Carefully read the mortgage document. The mortgage might become due if you have inherited a house. The loan might now be your responsibility.

If that’s the case, you’ll get two options. Clear the debt and keep the house. In the other case, you’ll have to sell the house to avoid foreclosure.

How Many People Have Inherited that House?

The chances are that you’re not the only heir of the property. You might have siblings or other distant relatives who have a share in the home. In that case, you alone cannot decide about the house.

In such cases, to avoid stress, it’s best to sell the house.

Tax Breaks are Huge

Selling an inherited property quickly can give you tax breaks. The Capital Gains Tax helps you in that case. Depending on the original price of the house, and the property price appreciation rate; you might be able to save a considerable sum of money.

Estate Tax Can Create a Problem

Inheriting a house has its consequences, especially when you consider the estate tax and inheritance tax. These taxes become due when you inherit the house. It doesn’t matter whether you keep the home or sell it. You’ll have to pay your share of taxes.

You pay federal estate tax if the value of the estate is more than $11.1 million. However, Connecticut has a separate estate tax which becomes due if the gross value of the estate is more than $3.6 million.

The state of Connecticut doesn’t impose an inheritances tax.

Inheriting Your Parent’s House Can be an Emotional Trauma

Leaving all issues aside, inheriting your parent’s home is an emotional experience. The parent-child bond can never be fully understood. It’s strange yet beautiful. Your parents left you their estate, as a gift to help you improve your life. But your parents and maybe you also have spent years in that property.

Thinking of selling that house or planning to keep it or even cleaning that home can be a stressful experience. Many people cannot handle the stress of owning & clearing their parent’s house. So, they don’t do anything and let the time pass. You might pay a significant cost for this inactivity. You’ll only add to your stress and expenses if you don’t live in the house and don’t do anything about it.

Most inherited houses are outdated. Neglecting that home will raise your maintenance costs and insurance premium.

If you have inherited a house and you need help, please get in touch with a reputable RE solutions company in Connecticut. You’ll get a free consultation so you can decide what’s best for you. If you want to proceed further with the sale of your home, the company can buy your home as-is for a cash price. You will get help with cleaning and moving things.

 

 

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