Selling an Inherited Property in New Orleans (and all surrounding cities)

Inheriting a property can be tough emotionally as well as on your bank account. Does the property need expensive upgrades and repairs? How much will you have to pay in taxes? What does it take for a homeowner to sell an inherited property? Are there special steps that need to be taken to deal with this type of sale?

How To Sell An Inherited Property in New Orleans (and all surrounding cities), Louisiana!

So you’ve inherited a property and you’re not sure what happens next. In most states, the inherited property must go through a probate process, or in Louisiana it is sometimes referred to as Succession, depending on certain circumstances. Probate/Succession in Louisiana is a legal process in which the Court legally transfers ownership of the estate’s assets to one or more beneficiaries and/or Heirs. Depending on the state of the will (if there was one), this process can be very fast or very slow. Please call us anytime, if you have questions during the process regarding the sale of a property.

Determine the Executor/Representative

For inherited properties with a will, establishing the executor of the estate should be straightforward. One of the most important aspects of a will is establishing an executor/administrator that is able to carry out the deceased’s wishes through the process of probate.  Any assets listed in a will can’t be sold until the will is validated by the Court but, once approved, the executor of the will is allowed to act on the wishes of the deceased. But if the will is contested or there is no will, the process might take longer as the Court gets involved. 

If there is no will, typically the court will appoint someone as an administrator/representative to the estate. The administrator/representative performs a similar role as an executor; they are usually responsible for handling all aspects of the deceased’s estate, (which may include real estate), as well as paying off any of the estate’s debts and distributing any assets. They may also determine if any real estate assets will need to be sold to pay off the estate’s debts, including back taxes, mortgages, etc.

Working with Attorneys and Real Estate Investors

Probate/Succession is not always a simple process, which is why you’ll want an experienced attorney to help you navigate the potential pitfalls of selling an inherited home. But once you have the probate/succession court’s okay to move forward with the sale of the property, and you decide listing it is not the best option, then working with a real estate investor, such as NOLA Real Estate LLC, may be your next smart step. An experienced cash buyer, with probate/succession experience will understand the nuances and regulations for this type of sale. As with all of our purchases, when NOLA Real Estate purchases an inherited home, you will not have to worry about any commissions, fees, or doing any type of repairs or even cleaning anything out of the property. We truly buy “As-Is”.

Resolve Any Debts

When you hear the word “inheritance”, are you aware that there may be pros and cons to inheriting real estate? Although your loved ones mean well when leaving you property, they usually don’t think of the cons that come with leaving you that property. Some of these cons may be: 1) A Mortgage Balance 2) Unpaid taxes 3) Deferred maintenance and repairs 4) Having to switch the homeowners insurance policy to a Vacant dwelling (if they were the last survivor to live in the property), which is usually very expensive. 5) Potential liens on the property that must be paid off. While a house may seem like a huge asset, it also can be a huge money pit. You should speak with someone that can at least get you moving in the right direction, and explain some of your options. That’s where NOLA Real Estate LLC can step in and help you, even if it’s just a consultation and we determine selling to us is not in your best interest.

Clean & Restore the Home

Once ownership has been decided and the property is considered yours, your next step will be to decide whether you want to live in it, rent it out, or sell it. Many times, when a loved one passes away, they leave behind a house that is not in the best of shape. Sometimes the property hasn’t been kept up in the past decade or so and needs major cleaning and repair, or there were never any upgrades done and the house will need to be completely renovated to make it “market ready”. This is the part of an inheritance that can sometimes become a huge burden. This can be an emotional, physical or financial burden; possibly all three. Again, give us a call at (504) 224-8814, for a no obligation consultation!

Do all heirs have to agree to sell the property?

This is a question we will defer to an attorney. There are so many possible outcomes when a loved one passes away and there are multiple heirs involved in the estate. If your loved one had a will, and instructions are clearly spelled out in the will, that should be fairly easy for the court to determine. But, all situations can be different and everyone does not leave a will, so please contact your attorney.

How to Settle a Disagreement

Again, if your loved one had a will with very clear instructions, this should be easier for the court to make determinations and to make sure that all wishes of the deceased’s will are followed through. If there was no will, and disagreements arise among the heirs, I am going to suggest contacting an attorney for guidance.

Best Practices

But what if the issue is with the heir that was named to be the executor/administrator? Disputes can occur when a family member is named as the executor or trustee of a will, causing strife with the other family members. If this has happened to you, an option is for the person to decline the appointment and choose an independent fiduciary, such as an estate-planning attorney, to administer the will. Stepping back while a neutral party steps in might not just keep arguments from cropping up, but might also give everyone the time and space to deal with difficult emotions, and possibly keeping family relationships intact. Of course, you need to inquire as to what extra fees will be incurred, if an independent fiduciary is chosen.

How is inherited property taxed when sold?

With laws and regulations differing from state-to-state, you’ll want to do your research and contact a lawyer or accountant with knowledge and experience of taxes and estate planning, so there are no surprises for you and/or other heirs, when it comes to how much, if any taxes are due, as a result of selling an inherited property.

State, Estate and Inheritance Tax Laws

Each state has different laws regarding inheritances. In the case of the sale of an inherited property, states may take an estate tax, an inheritance tax, as well as a capital gains tax on your inheritance. Since we are specifically interested in buying property located in Louisiana only, we will suggest that you contact a local attorney or tax professional to answer any tax related questions, regarding selling an inherited property in Louisiana.

Federal Inheritance Tax Laws seem to change regularly. Contact a local attorney or tax professional if the inherited estate is large, or if you would just like some information regarding this topic.

Capital Gains Tax on Inherited Property

As always, we will suggest contacting a local attorney or tax professional to discuss the rules and laws regarding possible Capital Gains when selling an inherited property in Louisiana.

Documents required to sell an inherited property

To sell an inherited property, you will need to have a copy of the documents issued by the court that grant you the legal authority to act as the executor or administrator of the estate or the court paperwork granting you possession of the property. These documents will establish your ability to sell the inherited property. If we come to an agreement to purchase your property, we will work closely with the title company that is chosen to handle the sale. They will advise if any other documents are needed to facilitate the sale of the property.

Would you prefer a Streamlined Solution to get your inherited property sold?

Then, give NOLA Real Estate LLC a call, or fill out our form today. We can help with the oftentimes convoluted process of selling a house in probate/succession and will buy your inherited home in New Orleans (and all surrounding cities), Louisiana, in any condition. So, contact us today! Let us make your home selling experience as straightforward and stress-free as possible so you can move on with your life.

Even if the house suffered major damage in the last storm or was neglected for years and needs a large amount of upgrades to make it “market ready”, once you accept our fair cash offer, our team of experts will handle all of those expensive repairs so you don’t have to! We make selling an inherited house in New Orleans (and all surrounding cities), Louisiana easy.