Inherited Property – Force the Sale?
When you inherit a property jointly with your siblings, you have to figure out what to do with it. The simplest thing to do is selling and distributing the proceedings equally or as stated in the trust or will. However, often this leads to divisions if siblings cannot agree among themselves to sell. Without help from the court, one sibling shouldn’t be forced to sell the property against their will.
Can Siblings Force the Sale of Inherited Property
Inheritance usually comes at a challenging time when a loved one has died, and those properties often hold sentimental value. Working with an attorney familiar with such situations is wise to avoid alienating a sibling for good.
What’s Inheritance?
An inheritance is a property that passes down to an heir when the owner dies. The heir could be the owner’s children, a favorite charity, etc. Inheritance typically involves probate, a process where the executor, usually a family member or close friend, settles the deceased’s affairs and distributes their assets to the beneficiaries and heirs. If there is no will, executors are appointed by the court, and they must include the names of any heirs in their application to serve as executors. A trust, on the other hand, does not go through probate.
What Kind of Ownership Can Result from Inheritance?
The kind of ownership resulting from inheritance depends on the trust or will. It can either be as tenants in common or joint tenants. In cases where there’s no trust or will, it defaults to tenants in common.
What to Do When You Inherit a Home
When you inherit a property, the extent of your powers depends on the nature of the ownership. In a joint tenancy, you must cooperate with fellow owner(s) and make joint decisions. As tenants in common, you have your share of the property and can manage it as you please.
Can the Majority Force the Sale of Inherited Property?
Without court intervention, the majority cannot force a sale. Even if only one sibling opposes the sale, their rights must be respected. The probate court can decide, and if it favors the sale, a third party may be appointed to handle the sale and distribution of proceeds.
However, going to court should be a last resort. Joint inheritors can reach agreements outside court, such as renting the property for shared profits, one sibling buying out the others, or postponing the sale.
The Tax Implications of Selling an Inherited Property
Selling an inherited property attracts a step-up tax, based on the value difference from when you inherited it to when it’s sold. This differs from the capital gains tax on selling your own home. Repairs may increase market value and, subsequently, the tax amount.
Tip: Due to Proposition 19, consulting with a trust attorney is highly recommended.
Need Help Dealing with the Inheritance Probate Process?
An inheritance can be both a blessing and a challenge. Experienced attorneys can help you navigate the process and stay within legal boundaries. For assistance with the inheritance probate process, consider consulting with experienced estate attorneys in California to understand your rights as an heir or beneficiary.
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