• Tel (781) 344-2886
  • Email info@brc-law.com

Law Offices of Barry R. Crimmins

Barry Crimmins

  • Practice Areas
  • Firm Overview
    • News
  • Current Projects
  • Blog
  • Contact Us
    • Stoughton, MA
    • Hyannis, MA
    • Falmouth, MA
Slide background
Legal Expertise, Personally.
Attorney Barry R. Crimmins is someone that you can depend on personally.
We take a small town approach to our client relationships and carry that personal
commitment into all of our cases.
Slide background
Life Happens. We Help You Plan For It.
The many stages of life present a variety of legal implications. Guidance on
Estate Planning and Administration, Medicaid and Elder Law issues are our focus.
Slide background
Real Estate Transactions, Permitting and
Development.
Whether commercial or residential, we have extensive experience in all aspects
of real estate law.

When Inheriting Real Estate Property, Consider Your Options

December 19, 2019 By Barry Crimmins

Inheriting real estate property from your parents is either a blessing or a burden — or a little bit of both. Figuring out what to do with the property can be overwhelming, so it is good to carefully think through all of your choices. 

There are three main options when you inherit real estate: move in, sell, or rent. Which one you choose will depend on your current living situation, whether or not you have siblings, your finances, whether the house has a mortgage or liens, and the physical condition of the house. The following are some things to consider:

  • Taxes. In most situations, you do not have to pay taxes on property you inherit, but if you sell the property, you will be subject to capital gains tax. The good news is that inherited property receives a step-up in basis. This means that if you inherit a house that was purchased years ago for $150,000 and it is now worth $350,000, you will receive a step up from the original cost basis from $150,000 to $350,000. You should get an appraisal done as soon as possible to find out how much the house is currently worth. If you sell the property right away, you should not owe any capital gains taxes. If you hold on to the property and sell it for $400,000 in a few years, you will owe capital gains on $50,000 (the difference between the sale value and the stepped-up basis). On the other hand, if you use the property as your primary residence for at least two years and then sell the property, you may be able to exclude up to $250,000 ($500,000 for a couple) of capital gains from your taxes. 
  • Mortgage. Does the house have a mortgage on it – either a regular mortgage or a reverse mortgage? Sometimes it is specified in the estate plan that the estate will pay off the mortgage. In cases where it doesn’t, with a regular mortgage you will likely have to assume the monthly payments. There are some mortgages, however, that require the heirs to pay off the mortgage immediately. With a reverse mortgage, you usually have a limited time to pay off the mortgage in full. 
  • Repairs. It is a good idea to hire a home inspector to assess the condition of the house. If the property needs significant repairs, it may affect what you do with it. Renovations and repairs can be costly and time-consuming. You may want to consult with a realtor before taking on any big projects. It may not make sense to spend a lot of money on the house.
  • Property Maintenance. Once you inherit the property, you will be responsible for maintaining it. The first thing you want to do if you inherit property is make sure the utilities and homeowners’ insurance are transferred to the new owners and continue to be paid on time. You will also need to pay all the property taxes and any other fees associated with the property. 
  • Other Owners. If you inherited the property with siblings, you will all need to agree on what to do with the property. If one sibling wants the property, he or she can buy it from the other siblings. Otherwise, you can sell or rent the property and split the profits. If there is a dispute among siblings, you can try professional mediation. In mediation, the disputing parties engage the services of a neutral third party to help them hammer out a legally binding agreement that all concerned can live with. The disputing parties can control the process and they have a chance to explain their perspectives and feelings. If you go to court, the judge will likely order the house to be sold so the profits can be split. 

Ultimately, there are many decisions to make when you inherit real estate property and deciding what to do with it can be a very emotional decision. If possible, try not to rush into any decisions until you’ve had time to thoroughly consider your options.

 

Filed Under: blogs

Contact Us Today

  • We are happy to discuss any legal concerns with you.
  • This field is for validation purposes and should be left unchanged.
Communication of information through this website does not create an attorney-client relationship.

Recent Posts

march newsletter

Elder Law News, March 2023

As the generation of Baby Boomers ages, many are finding their adult children aren’t in the financial position to provide support if long-term care is needed.

BRC Newsletter March

Elder Law News, September 2022

As the generation of Baby Boomers ages, many are finding their adult children aren’t in the financial position to provide support if long-term care is needed.

august newsletter

Elder Law News, August 2022

With healthcare and nursing homes being a hot topic as of late, you may have some questions regarding your care or the care of a loved one. If so…

Elder Law News - May 2022 Thumbnail

Elder Law News, May 2022

With healthcare and nursing homes being a hot topic as of late, you may have some questions regarding your care or the care of a loved one. If so…

Elder Law NEWS - April 2022

Elder Law News, April 2022

In 2022, change remains constant. But, as it applies to eldercare, some shifts are favorable, while others could directly impact the financial stability and level of care your loved one receives. 

Our expertise includes Real Estate Law and Land Use Permitting, Estate Planning and Estate Administration, with an emphasis on Elder Law and Medicaid Planning.
Practice Areas
We've developed a reputation for excellent service in these areas of the law through more than 35 years of experience.
Our Attorneys
The legal services from the Law Offices of Barry R. Crimmins, P.C. in Stoughton, Falmouth and Hyannis Massachusetts
Our Locations

Recent News

Law Offices of Barry R. Crimmins, PC

march newsletter

Elder Law News, March 2023

As the generation of Baby Boomers ages, many are finding their adult children aren’t in the financial position to provide support if long-term care is needed.

BRC Newsletter March

Elder Law News, September 2022

As the generation of Baby Boomers ages, many are finding their adult children aren’t in the financial position to provide support if long-term care is needed.

august newsletter

Elder Law News, August 2022

With healthcare and nursing homes being a hot topic as of late, you may have some questions regarding your care or the care of a loved one. If so…

Elder Law News - May 2022 Thumbnail

Elder Law News, May 2022

With healthcare and nursing homes being a hot topic as of late, you may have some questions regarding your care or the care of a loved one. If so…

Elder Law NEWS - April 2022

Elder Law News, April 2022

In 2022, change remains constant. But, as it applies to eldercare, some shifts are favorable, while others could directly impact the financial stability and level of care your loved one receives. 

Links

  • Home
  • News
  • Site map
  • Privacy Policy
  • Terms & Conditions

Contact Us

  • 909 Washington Street, Stoughton, MA 02072
  • 1436 Iyannough Road, Hyannis, MA 02601
  • 20 Academy Lane, Falmouth, MA 02540
  • Phone: (781) 344-2886
  • Email: info@brc-law.com

Follow Us:

  • facebook
  • twitter
  • linkedin

Estate Planning

  • Estate Planning
  • Estate Administration
  • Elder Law
  • Medicaid Planning

Real Estate

  • Land Use Permitting
  • Landlord – Tenant
  • Purchase & Sale Agreements
© Copyright 2023 Law Offices of Barry R. Crimmins, P.C. All rights reserved.
Site Maintained by Interactive Palette