Did your parents leave behind property that you inherited? Congratulations, you might be thinking that you’ve hit the jackpot and can do as you please, but there are some myths that we want to dissolve when it comes to property inheritance.
Read on below to found out what exactly it means when you’re inheriting a property.
I Don’t Have to Pay Taxes
One of the common misconceptions people make when inheriting property is that they don’t have to pay taxes. This couldn’t be further from the truth.
In September of 1985, the capital gains tax was introduced and is one of the key factors in figuring out whether you’ve got to pay taxes on the property or not. The property’s location is also something that matters when it comes to the taxes that will need to get paid.
Can Sell the Home and Pay No Tax
If you’ve acquired property and the only thing on your mind is selling the home, there are some things you need to know. If you sell your home within two years after you’ve inherited it and it served as the main home of the deceased, there is no tax.
However, if the home that you’ve inherited will be used as a vacation home or rental property and you find yourself outside of the two-year time period, there will be tax as well. We recommend that you check out the link we’ve provided for you if you want to know more about selling a house fast.
The Home Needs to Be in The Will
People use wills to leave no question about the assets they’re leaving behind. You might think that your parents had to write the home and other properties into their will as a way of ensuring that you’d inherit it.
While it’s much easier to do it this way, it isn’t always done. The home or other properties don’t have to be listed because upon the owner’s death; it will be passed down to the person noted as the beneficiary of the property.
Thus, to avoid any issues if the property is listed as your inheritance, your parents would need to change the beneficiary to ensure you don’t run into any issues.
You Can’t Refuse a Property
Some people think that once you’ve inherited a property, there is no way that you can refuse it. You can refuse any part of an inheritance, and it’s known as disclaiming your inheritance.
However, when refusing, you will have to undergo a process to make sure your reason for not claiming the inheritance is valid.
Myths About Property Inheritance
There are several myths that people believe when it comes to property inheritance. Some of the myths include that if you sell the home, it won’t be taxed, as well as believing that you have to accept the inherited property.
We hope that we provided the information you were looking for and encourage you to scroll through some of our other posts.