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Understanding Inherited Property

Clear Guidance For Estate Homes

Frequently asked question

What is the difference between obtaining a home through an estate or through an inheritance?

• Inheritance is the process of receiving assets (like a home) after someone dies, according to their will or state law if there’s no will. You inherit the home directly as a beneficiary. Once the estate is settled, ownership of the house is transferred to you.

• Estate refers to everything a person owned when they died — their property, money, debts, etc. If you obtain a home "through an estate," it usually means you're getting it while the estate is being settled. The estate might sell the house and you buy it, or it might be transferred to you as part of the estate distribution.

Key difference:

• Inheritance = you’re a direct beneficiary.

• Estate = you could be a buyer or beneficiary dealing with the legal process of distributing someone’s assets.

In Georgia, inheriting a home involves several legal and procedural steps, which can vary based on factors like the existence of a will, the property's ownership structure, and any outstanding debts.

Here's a comprehensive guide to help you navigate the process:

This is not meant to be legal advice, every situation is different. Contact us for a list of professionals you may want to contact.

1. Determine How the Property Is Titled

• Joint Tenancy with Right of Survivorship (JTWROS): If the deceased co-owned the property with someone else under JTWROS, the surviving owner automatically inherits the deceased's share without the need for probate. • Sole Ownership or Tenancy in Common: If the property was solely owned by the deceased or held as tenancy in common, it typically must go through probate to transfer ownership to the heirs.

2. Understand the Probate Process

Probate is the legal procedure to settle the deceased's estate, including transferring property ownership. The process differs based on whether there's a will: • With a Will (Testate): The executor named in the will files a petition with the probate court to validate the will and obtain authority to manage the estate. • Without a Will (Intestate): An interested party, usually a close relative, petitions the court to be appointed as the estate's administrator. The probate process involves: 1. Filing a Petition: Submit the will (if available) and a petition to the probate court in the county where the deceased resided. Appointment of Executor/Administrator: The court appoints a personal representative to manage the estate. 2. Notifying Heirs and Creditors: Inform all potential heirs and creditors about the probate proceedings. 3. Inventory and Appraisal: List and appraise all estate assets, including the property. Paying Debts and Taxes: Settle any outstanding debts and taxes owed by the estate. 4. Distributing Assets: Transfer the remaining assets to the rightful heirs or beneficiaries. The duration of probate can vary but typically takes between 6 to 12 months, depending on the estate's complexity.

3. Intestate Succession Laws in Georgia

If the deceased died without a valid will, Georgia's intestate succession laws determine the heirs: • Spouse and No Children: The spouse inherits the entire estate. • Spouse and Children: The estate is divided equally among the spouse and children, with the spouse receiving at least one-third. • Children Only: Children inherit the entire estate equally. • No Spouse or Children: The estate passes to parents, then siblings, and further relatives as defined by law.

4. Tax Implications

• Stepped-Up Basis: Inherited property receives a "stepped-up" basis, meaning its value is adjusted to the fair market value at the date of the owner's death. This can reduce capital gains taxes if the property is sold. • Property Taxes: Heirs are responsible for ongoing property taxes. Georgia offers homestead exemptions that may reduce tax liability if the heir occupies the property. • Federal Estate Tax: Most estates fall below the federal estate tax exemption threshold, but it's essential to consult with a tax professional to understand any potential liabilities.

5. Options for the Inherited Property

• Sell the Property: This is common, especially if multiple heirs are involved. Proceeds are divided according to the will or intestate laws. • Rent the Property: Provides a source of income but comes with landlord responsibilities. • Move In: If an heir chooses to live in the property, they should ensure the title is correctly transferred and consider refinancing if there's an existing mortgage.

6. Special Considerations

• Multiple Heirs: All heirs must agree on decisions regarding the property. Disagreements can lead to legal actions like partition lawsuits. • Heir Property: Over generations, property can become "heir property," where multiple descendants have fractional ownership, complicating decisions about the property's use or sale.

Need to Sell an Inherited Home?

Compassionate Guidance. Expert Results. Stress-Free Process.

Inheriting a property can feel overwhelming. Whether you want to sell quickly, maximize value, or simply understand your options, The Nestwell Group is here to guide you with professionalism, care, and experience.

Why Work With Us?

• Compassionate Approach: We understand the emotional weight behind selling an inherited home.

• Probate Expertise: We work closely with attorneys and understand the unique steps of selling estate properties.

• Tailored Solutions: Whether "as-is" sale, repairs for top dollar, or investor offers — we provide the right strategy for you.

• Trusted Network: Access to cleanout crews, contractors, probate attorneys, and estate sale professionals.

• Stress-Free Selling: We handle the marketing, showings, offers, and closing paperwork so you can focus on what matters most.

Our Simple 4-Step Process

1. Free Consultation: We listen to your needs and explain your options.

2. Home Evaluation: Receive a customized market analysis and selling strategy.

3. Preparation: Choose "as-is" sale or simple updates to boost your price.

4. Sell and Close: We handle everything from listing to final paperwork.

Inheritance Checklist Preview

Get a quick look at our step-by-step guide. Download the full-size version to save, print, or use as you navigate your inherited property.

Ready to Explore Your Options?

Reach out for a no-obligation consultation.

Let's make this transition smooth, respectful, and profitable for you.

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