One of the most common solutions to dividing inherited property is simply to sell the property and split the proceeds from the sale equally between all siblings. This solution typically offers the most benefits for all sides since it's nearly impossible to split physical property into fair, equal shares.
If all siblings inherit a house equally, for example, then the proceeds from the sale will also be divided equally. However, if the document excludes specific siblings, they have no right to the profits.
You will have to probate your parents estate in the county where the property is located. If the sibling has children, you will be entitled to half of the parents estate and the siblings children will be entitled to the other half through intestate succession.
When a house is transferred via inheritance, the value of the house is stepped up to its fair market value at the time it was transferred, according to the IRS. This means that a home purchased many years ago is valued at current market value for capital gains.
In most cases of property passing to multiple owners, each sibling will have an equal share unless stated otherwise in the will. With each party having an equal stake in the property, things can get complicated if you and your sibling disagree about how to use the house.
While executors have discretion in some areas, your core decision-making is bounded by: The deceased's will. You must follow their distribution wishes rather than diverging based on your own judgments.
The straightforward answer is no, and there is no specific time limit on selling an inherited property. However, certain factors will influence the timeline of the sale process. Understanding these nuances is key to ensuring a smooth and compliant sale.
It depends on your personal circumstances. If you want to live in the home or use it as a rental property, keeping it obviously makes sense. If you don't want to do either — or if it needs significant work that you don't want to commit to — selling it will make more sense.
As the law regards such a family member as a tenant, one can initiate evicting them through a legal action known as an unlawful detainer. This involves filing a complaint in court and providing the family member with a notice of eviction, allowing them to vacate the premises.
Timelines for transferring property after the owner's death vary by state and can range from a few months to over a year.
However, under California law, if the siblings can't agree and any of the siblings want to sell the house they inherited, they can use a legal proceeding known as a “partition action” to force the sale.
While beneficiaries can often disagree with an executor's decisions, unless the executor clearly violates the terms of the will or breaches their fiduciary duty, there is typically nothing a beneficiary can do about it.
An heir can claim their inheritance anywhere from six months to three years after a decedent passes away, depending on where they live. Every state and county jurisdiction sets different rules about an heir's ability to claim their inheritance.
In conclusion, selling a house in probate in California is a process governed by strict legal requirements and codes. Executors must navigate through court approvals, inform beneficiaries, and adhere to the probate codes to ensure a fair and lawful distribution of assets.
Either sell the property (if the will or trust permits you to do so) or divide the property according to the terms of the will or trust. Divide the proceeds from the sale (if applicable) among siblings in accordance with the percentage of each's ownership interest.
Share the House With a Formal Agreement
If all the siblings inherit the property equally and want it, it's important to establish a partnership agreement that establishes usage rules, such as how often people get to use it, who takes priority and guest privileges, said Banuelos.
In some cases, the executor can sell the house without getting the sign-off from all the heirs. For example, in California, if the executor can sell the property for at least 90 percent of its appraised value, they may have the authority to move forward with the sale.
“Give the house, the land or the business to just one child and make up the difference with a monetary share for the others. Alternatively, stipulate that the asset be sold and the proceeds divided evenly. That way, the one who really wants the asset can buy the others out.”
Personal possessions should not be distributed before probate is completed, as they are part of the estate that must be inventoried and appraised. Distributing items prematurely could lead to legal disputes, especially if they are intended for specific beneficiaries.