Inheriting a House Is a Mixed Blessing
Homeownership is synonymous with generational wealth, and it is increasingly out of reach for young people. Of course, it is not equally out of reach for everyone in your generation. If your parents own a house, the chances are greater that you will own one. Your parents can give you money for a down payment or co-sign on your mortgage loan; the fact that they own their house, even if they still owe money on the mortgage, can help them do either of those things. Even if they do not give you a penny toward homeownership during their lifetimes, they can convey the gift of homeownership to you by writing a provision of their will where you inherit their house. Inheriting a house can quickly increase your net worth; it might even move you from a negative net worth to a positive one. Despite this, inheriting a house comes with financial burdens and expenses that can make it feel less like a boon and more like an albatross around your neck. For help with a probate case where you are inheriting a house, individually or jointly with your siblings, contact a Washington, D.C. probate lawyer.
Yes, There Are Expenses, but Perhaps Not the Ones That You Are the Most Worried About
For as long as you have been scrambling to pay your rent, your bosses and clients have been complaining about the costs of homeownership. It has always sounded like humblebragging to you, but when you inherit your parents’ house, you will face the same financial burdens. Yes, owning a house unencumbered by a mortgage is a reason to be grateful, but property taxes are not cheap. You will also be responsible for the cost of repairs to the house, whether you own it or rent it out. Likewise, you would be surprised how much more expensive the utilities are for a whole house than for your cramped, overpriced apartment.
Contrary to what some scary rumors online might make you think, you do not have to pay capital gains tax on the hundreds of thousands of dollars that your parents’ house has appreciated since they bought it before you were born. The current capital gains tax laws say that you must only pay capital gains tax on value that the house has appreciated since the testator’s death.
Getting Out of Owning an Inherited House Is Not So Simple
You might choose to sell the inherited house, especially if it is in a city where you have not lived since you were a child, and use the money to place a down payment on a house close to your place of employment and your children’s school. Selling a house is a hassle, though. The matter is even more complicated if you and your siblings inherited the house together, because you must agree on the terms of the sale.
Contact Tobin O’Connor Concino P.C. About Inheriting Real Estate in Probate
A Washington, D.C. probate attorney can help you deal with the legal consequences of inheriting your parents’ house. Contact Tobin O’Connor Concino P.C. in Washington, D.C. or call 202-362-5900.
Source:
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