Introduction: Inherited a Property? Here’s What You Need to Know
Inheriting a home in Missouri can be both a blessing and a challenge. While a property can be a valuable asset, it also comes with legal responsibilities, taxes, and potential financial burdens. If you’ve recently inherited a home and aren’t sure what to do next, this guide will walk you through your options and solutions so you can make the best decision for your situation.
📌 Related Blog: How to Sell a Home in Probate Before the Process Is Complete
1. First Steps After Inheriting a Home
Before deciding what to do with an inherited property, follow these essential first steps:
📌 Find Out if the Property is in Probate
- If the homeowner left a will, the home must go through probate court before you can take ownership.
- If there’s no will, Missouri intestate succession laws determine who inherits the property.
- Solution: Work with a probate attorney or real estate professional to navigate the process.
📌 Check for Outstanding Debts & Liens
- Mortgages, unpaid property taxes, and liens could affect your ability to keep or sell the home.
- Solution: Order a title search to identify any outstanding financial obligations.
📌 Understand Your Ownership Rights
- Are you the sole owner, or do you share ownership with siblings or other heirs?
- Solution: If multiple heirs are involved, decide whether to sell, rent, or buy out other owners.
📌 Related Blog: How to Sell a Home with a Clouded Title in Missouri
2. Your Options for Handling an Inherited Property
Once you understand the legal status of the home, you have three main options:
Option 1: Keep the Property & Live In It
✅ Best for: Those who want to keep the home for personal use.
❌ Challenges: Must cover mortgage, property taxes, and maintenance costs.
🔹 Pro Tip: If you plan to keep the home, check insurance and loan requirements to avoid financial surprises.
Option 2: Rent It Out for Passive Income
✅ Best for: Those who want to generate income without selling.
❌ Challenges: Requires property management, tenant screening, and maintenance.
🔹 Pro Tip: Hire a property manager if you don’t want to handle tenant issues yourself.
📌 Related Blog: Selling a Rental Property with a Lease in Place
Option 3: Sell the Property for a Cash Payout
✅ Best for: Those who want a quick sale and to avoid ongoing costs.
❌ Challenges: Selling a home traditionally can take months, especially if it needs repairs.
🔹 Pro Tip: If you need to sell quickly, consider selling to a cash buyer who can close in as little as 7-14 days.
📌 Related Blog: How to Sell a Home Fast for Cash in Missouri
3. Selling an Inherited Home: What You Need to Know
If you decide to sell, here are your main options:
📌 List with a Real Estate Agent
- Best if the home is market-ready and needs no major repairs.
- Downsides: Agent commissions, long closing times, and required home inspections.
📌 Sell the Home As-Is to a Cash Buyer
- Best for fast, hassle-free sales without repairs or listing fees.
- Downsides: May sell for slightly below market value, but avoids the stress of waiting months for a buyer.
📌 Consider a Short Sale if the Property Has Debt
- Best for homes with outstanding mortgage debt higher than the property value.
- Downsides: Requires lender approval and may take longer to process.
📌 Related Blog: Short Sales in Missouri: How to Sell Your Home for Less Than You Owe
4. Tax Implications & Legal Considerations
Before making a decision, be aware of the financial and tax consequences of inheriting a home in Missouri.
📌 Capital Gains Tax
- If you sell the home, you may owe capital gains tax on any increase in property value.
- Solution: Use the step-up basis tax rule to reduce taxable gains.
📌 Property Tax Responsibilities
- As the new owner, you’re responsible for annual property taxes.
- Solution: Contact the Missouri County Assessor’s office to determine tax amounts.
📌 Mortgage & Debt Considerations
- If the home has an existing mortgage, the lender may require you to refinance or sell.
- Solution: Contact the lender to explore assumption or payoff options.
Final Thoughts: Making the Right Choice for Your Situation
Inheriting a property in Missouri comes with important decisions. Whether you choose to keep, rent, or sell the home, understanding your options is key to avoiding legal issues and financial strain.
📌 Need help deciding what to do with an inherited home? Download our FREE Homeowner Survival Kit for expert guidance on selling, avoiding financial pitfalls, and making the best choice for your situation!
To learn more about your FREE Homeowner Survival Kit, visit our page Save Your Home Now!
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