Can I Keep My Parents’ House After They Die?

Understanding Inheritance and Property Rights

Probate and Estate Administration

When your parents pass away, their estate may go through probate—a legal process that administers their assets and ensures their debts are paid. If your parents left a will, it would likely outline their wishes regarding the property’s distribution. If you are named as the heir to the house in the will, you can keep the property after the probate process is completed.
However, if your parents died without a will, state intestacy laws would determine the property’s distribution. Depending on your family situation, you may have to share the inheritance with other relatives, such as siblings.

Joint Ownership and Transfer on Death Deeds

If your parents owned the house jointly with rights of survivorship or as community property, the property would automatically pass to the surviving owner(s) upon their death, bypassing the probate process. Additionally, if your parents executed a transfer on death deed, the property would also transfer directly to the named beneficiary.

Dealing with Mortgage and Property Taxes

Assuming a Mortgage

If your parents’ house has a mortgage, you’ll need to consider how to handle it. You may be able to assume the mortgage and continue making payments. However, you should consult with a mortgage professional and legal counsel to understand your options and any potential tax implications.

Property Taxes and Exemptions

Property taxes can be a significant burden for heirs, but some states offer tax exemptions or deferrals for inherited properties. Consult with a local tax professional or attorney to determine if you qualify for any tax relief programs.

Seeking Professional Legal Advice

Hess-Verdon & Associates: Your Trust and Probate Litigation Experts

Inheriting a property can be a complicated process, and it’s essential to seek professional legal advice to ensure your rights are protected. At Hess-Verdon & Associates, our unparalleled estate planning expertise and over three decades of experience in trust and probate litigation make us your ideal
partner. We are committed to delivering comprehensive, results-oriented legal counsel to trustees, beneficiaries, business entities, and real estate partners. Our team’s extensive background in trial preparation, strategy, and presentation ensures that you receive the best possible guidance.
Our dependable and sophisticated trust and probate litigation services will help you navigate the complexities of inheriting your parents’ house, allowing you to make informed decisions. Don’t hesitate to contact us at 1-888-318-4430 for a consultation.

Conclusion

The process of keeping your parents’ house after they pass away depends on several factors, such as the property’s ownership, mortgage status, and the terms of their will. By seeking professional legal advice from the experienced team at Hess-Verdon & Associates, you can better understand your rights and navigate the complexities of inheritance, ensuring a smooth transition of property ownership.

FAQs

Q: Can I keep my parents’ house if it’s in a trust?

A: If your parents’ house is held in a trust, the terms of the trust will determine the distribution of the property. Consult with a trust and probate attorney to understand your rights as a beneficiary.

Q: Do I have to pay capital gains tax on an inherited property?

A: Generally, you won’t have to pay capital gains tax on the inherited property until you sell it. The property’s cost basis will be “stepped-up” to its fair market value at the time of your parents’ death.

Q: Can I live in my parents’ house while it’s in probate?

A: Depending on the circumstances and the estate’s executor’s approval, you might be able to live in the house during probate. However, you should consult with a probate attorney to understand your rights and responsibilities.

Q: What happens if I can’t afford the mortgage on the inherited property?

A: If you can’t afford the mortgage, you may have to sell the property or explore refinancing options. Consult with a mortgage professional and a legal advisor to understand your options.

Q: Can I rent out my parents’ house after they pass away?

A: Depending on the terms of the will or trust, local regulations, and any mortgage stipulations, you might be able to rent out the inherited property. Consult with an attorney and a property management expert to understand your rights and obligations as a landlord.