If you are thinking about selling your inherited property, you might be wondering, “Is there a holding period before selling my inherited home?” This article will answer that question and you might be surprised at what you learn…
If you’ve inherited a property, you might now be wondering what to do with that property. And if you’re thinking about selling it then you’re probably wondering, “Is there a holding period before selling my inherited home?”
Great question. There are a few things you should know in order to answer the question…
Is There A Holding Period Before Selling My Inherited Home
Probate Versus Inheritance
Probate and inheritance are two legal concepts that relate to the distribution of a deceased person’s assets. In Oklahoma, both probate and inheritance play important roles in transferring a decedent’s assets to their beneficiaries, but they differ in their approach and legal implications.
Probate is the legal process by which a decedent’s estate is administered and distributed under the supervision of a court. In Oklahoma, probate is required for any estate that has assets with a gross value of $20,000 or more, or if the decedent owned any real estate. The probate process involves several steps, including:
- Filing a petition for probate: This is the initial step, where the executor or a family member files a petition with the court to open the probate process.
- Appointment of an executor: The court will appoint an executor to manage the estate. The executor is responsible for collecting the assets, paying off any debts, and distributing the assets to the beneficiaries according to the will or the laws of intestacy if there is no will.
- Inventory and appraisal: The executor must provide an inventory of all the assets owned by the decedent and their estimated value. This is to ensure that all assets are accounted for and accurately valued.
- Payment of debts and taxes: The executor is responsible for paying any debts owed by the estate and any taxes due to the state or federal government.
- Distribution of assets: After all debts and taxes have been paid, the executor can distribute the remaining assets to the beneficiaries according to the will or laws of intestacy.
Probate can be a time-consuming and costly process, as it involves court fees, attorney fees, and other expenses. However, it provides legal protection for the beneficiaries by ensuring that the assets are distributed according to the decedent’s wishes or the laws of intestacy.
Inheritance, on the other hand, is the process by which a person receives property or assets from a decedent without going through the probate process. In Oklahoma, an estate may be transferred through inheritance if the decedent had a valid will that specifically designated the beneficiaries of the assets. If there is no will, the assets will be distributed according to the laws of intestacy. Inheritance is a simpler and faster process than probate, but it may not provide the same level of legal protection as probate.
In Oklahoma, there are several types of property that may be transferred through inheritance, including:
- Joint tenancy property: If the decedent owned property with another person in joint tenancy, the surviving joint tenant will inherit the property automatically.
- Payable-on-death accounts: Bank accounts, retirement accounts, and life insurance policies that have designated beneficiaries will transfer directly to the beneficiaries upon the decedent’s death.
- Transfer-on-death deeds: Real estate can be transferred through a transfer-on-death deed, which allows the owner to designate a beneficiary to receive the property upon their death.
- Small estates: In Oklahoma, if the gross value of the estate is less than $50,000, the assets may be transferred through an affidavit of heirship, which is a simpler and less expensive process than probate.
Inheritance may be a suitable option for small estates or estates where the assets are already designated to specific beneficiaries. However, it may not provide the same level of legal protection as probate and can result in disputes among family members if there are questions about the decedent’s wishes or the validity of the will.
In conclusion, while both probate and inheritance are legal processes for transferring assets from a decedent to their beneficiaries in Oklahoma, they differ in their approach and legal implications. Probate provides legal protection for the beneficiaries but can be a lengthy and costly process.
Therefore, if someone leaves you a home and the house is in probate, you might not be able to sell it right away because the will is still being proved and there could be other heirs contesting the will.
There Is A Holding Period (But Not What You Think)
There is a holding period with inherited homes but the holding period doesn’t mean you can’t sell… it’s simply a term used to describe how you will be taxed on the property – and it depends on when the deceased passed away.
However, in most cases, this won’t prevent you from selling the property but you should talk to an accountant to see if the holding period will impact how much tax you pay.
There May Be Other Factors
While there isn’t likely going to be a holding period on the inherited house itself that will prevent you from selling it, you should be aware that there could be other holding periods that will make it more challenging to sell – such as if the house still has a mortgage or some other obligation. But in many cases, these can be sorted out and, in the long-term, shouldn’t keep you from selling.
So, if you inherited a house and are now thinking about selling it, and if you’re wondering, “Is there a holding period before selling my inherited home?” then here’s the good news: You probably don’t have to wait to sell and you can get that process going right away. However, be aware that there could be other factors that may delay the sale, or that could impact the tax you’ll have to pay when you sell.
Here’s a fast solution for you: If you want to sell your inherited house as quickly as possible, give us a call! We’ll give you a fair, fast all-cash offer to buy your inherited house as-is.