What I Learned From Inheriting Property

When I heard about the passing of my father, the last thing on my mind was dealing with real estate agents and taxes. However, as the dust settled, handling his property with care became the last act of piety that I could perform. I eventually sold the property to Cream City Home Buyers Milwaukee. They offered a cash price and allowed us to bypass the lengthy and invasive listing process. In this post, I will share what I learned from my experience.

Mixed Feelings Are Perfectly Normal

When I first learned that I had inherited property, my initial feelings were a mix of confusion and grief. I had lost someone significant but, at the same time, people around me were telling me what a great financial blessing it was to have another asset to my name. I felt that I should have been more grateful for the inheritance. Soon after, the reality of what it meant to manage this new asset hit me. I had to deal with the probate process, taxes, debts, and maintenance issues—complex tasks that I was wholly unprepared for.

Legal Help is Invaluable

The probate process was an intimidating hurdle and the first step I took was to seek legal advice. The probate procedure involves proving a last will and testament in court, which is essential for recognition of the inheritance. An estate lawyer helped me navigate this complex process and made sure that all my family members fulfilled their legal obligations to avoid potential disputes. Although we did not have any contests to the will, the professional guidance of an attorney still made managing the necessary paperwork easier.

The Financial Implications Are Huge

The financial implications of inheriting property were more extensive than I anticipated. Beyond the immediate taxes and potential debts associated with the property, I had to consider long-term financial planning. I learned about the concept of a “step-up in basis,” which adjusted the property’s tax value to the market value at the time of inheritance, potentially reducing capital gains taxes if I decided to sell. Confused? Me too! Most of it was gibberish to me, so I sought a tax advisor to help me understand and plan accordingly.

Maintenance and Upkeep Never Stop

The upkeep of the property was another area where I learned a lot. Regular maintenance is vital to preserve the property’s value and prevent more significant issues down the line. This included routine tasks like landscaping, checking plumbing, and ensuring the property met safety codes. Because my father had neglected the property in his later years, there were quite a lot of repairs and renovations that needed to be performed to get the house back to a reasonable state for renting or selling.

Being a Landlord Isn’t Easy

I thought about renting out the property, thinking it would be a great way to generate income. Sadly, I quickly learned that being a landlord comes with its own set of pains and problems. From finding trustworthy tenants to handling maintenance issues and complying with landlord-tenant laws, property management was almost a second job. With a full-time job of my own, the only way to make the house work as a rental property would be to hire a property management company to handle daily operations and maintenance.

Letting Go Can Be a Part of Healing

Eventually, we decided to sell the property. It was a difficult decision, but I believe that it was the right one, because also prevented future conflicts with my siblings. We were lucky to find a home broker who offered a cash price. The quick sale meant that we could move on and find closure. I felt relieved of the responsibility that came with the property. I learned that sometimes, letting go of a physical asset, even one with sentimental value, can be part of the healing process. With my share of the sale, I paid off my current mortgage and honestly have a more care-free life.

Emotional Decisions Can Be Costly

Making the final decision on what to do with the inherited property was perhaps the hardest part of my experience. I resisted selling it despite the clear signs that it was getting too expensive to maintain. This emotional decision led to financial strain, as the costs for upkeep and taxes added up and ate into my savings. If I had not taken the advice of financial advisors and weighed the financial implications more rationally, I might have ended up losing not just my own money but also any potential return from the property.

Open Communication is Key

Since there were multiple heirs involved in the inheritance, maintaining open lines of communication was crucial. This approach helped avoid conflicts and ensured that everyone’s voice was heard. I had numerous discussions with my siblings before we came up with a solution that worked for everyone. While some of our conversations were emotionally charged, the opportunity to air our thoughts and grievances helped us to move forward in a positive way. After all, what good is a family home if you fight with your family over it all the time?

Inheriting property can be a boon or a burden. In the months when I was responsible for managing my father’s property, I learned valuable lessons about finances and family that will stay with me for a lifetime. I hope these lessons will be useful to you, too.