If you’ve inherited a property, especially from a loved one, having to sell the home is one of the last things on your mind during your period of mourning. I have been asked the question about whether or not there is a holding period before selling an 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 an Inherited Home
What is an Inherited Property?
In North Carolina, probate is the process of what happens with the estate of a person who dies (“the decedent”). There is a probate process regardless if the decedent dies with, or without, a will.
If there is a will, then their property is distributed according to the will.
If there is no will, then their property is distributed according to North Carolina probate laws.
The Probate Process in North Carolina
Probate officially begins when the court appoints a representative to handle the administration of the estate. If the decedent (person who passed-away) has a will there is usually someone already named to do this. If not, the clerk of court will appoint one. This applies to all estates that contain real estate.
The representative must then:
- Assemble all the assets
- Pay the expenses (taxes, creditors, funeral costs, etc.)
- Distribute the left over assets (usually the house)
How is Probate Different From Inheritance?
In general, an inherited property is what you get when someone passes away and leaves you their property. Probate is a stage along the way – it’s the step of proving the will and making sure that the right heir gets the right inherited property.
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.
However, if probate is complete and you fully own the inherited house, then you can likely sell without waiting.
There Is a Holding Period
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. (Summary probate processes are excluded when real estate is involved).
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.
We bought an inherited house in Raleigh that had 8 heirs total. Luckily, one heir had the power of attorney, and was working with a competent local attorney to facilitate the process. It took a couple of months to settle the liens against the title but we got it closed.
The moral of the story is to contact a company that buys houses for cash right away.
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 (liens or judgments). 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.