Once you inherit a house, you will receive so much more than a piece of property. Sure enough, there will be a potential for financial gain. However, before this even becomes an option, you must think about other aspects of inheritance. Inheriting a house in Wake County, North Carolina, also brings legal and financial responsibility. In some cases, it may even require negotiations with your siblings or their heirs. If you’ve inherited the property after a parent’s passing, it may also be a very emotional experience. Figuring out what to do with your Wake County home may be confusing, but worry not! We’re here to advise you on your next steps and help you make the right decision. There are a few key points to consider, and we’ll go through each of them. Let us look at the options you should consider when dealing with your new property.
Re-visit the insurance policy after inheriting a house in Wake County
Once the owner of the home is changed, the property’s insurance policy should be rewritten. In most cases, the insurance companies will give up to 30 days to find your own coverage. Additionally, some will keep the current policy unchanged as long as the payments are up-to-date. If you inherited the property after someone’s passing, it would go into probate until the affairs and debts of the deceased are settled. During this time, you won’t be able to get insurance in your name. Keep in mind that the probate period could take up to a year. Experts at Master Moving Guide advise either you or the estate executor to contact the current insurance company and ask about your coverage options. Short-term insurance could indeed be pricey, especially if the home is vacant. However, it is important to maintain coverage until you can renew the policy in your name.
Investigate any existing debts and mortgages tied to the property
This isn’t an option but rather a necessity, regardless of your future plans with the home. Until you make a decision on what to do with your Wake County house, you need to think of the hidden costs of owning vacant land. If the house has an active mortgage, you must continue making payments. Otherwise, you run the risk of going through foreclosure. This essentially means that the property will be taken away with no compensation. Checking for mortgages and their holders is best done through the home’s title, as it lists the lenders. Alternatively, you could request a credit report on the previous owner. Besides mortgages, a title check will reveal any overlooked debts, such as unpaid contractor bills or even second mortgages. Doing all this is vital because debts follow the property. Once you become the owner of the house, you will inherit the debts as well.
Selling your Wake County property gives you a clean break
Sometimes, it simply isn’t practical to keep a house for several reasons. You might not be able to keep up with the mortgages of both your current property and the inherited one. Or you simply don’t want to go through the complications of renting it or co-owning it with someone else. Whatever the reason, selling the home gives you a clean break. Should you decide to sell the property, make a plan that will help you cover the expenses while the house is on the real estate market. If the home is full of mementos, we’d be happy to share a few tips with you on how to keep memories secure. And, if you wish to renovate the property in order to increase its value, we advise setting up a separate budget plan for this cause.
Moving in comes with its own benefits
Turning your inherited Wake County, North Carolina home into a permanent residence isn’t a bad idea at all if you can afford it. Should you decide to do so, remember to call movers in advance. Before you make this choice, think carefully about the mortgage costs, property taxes, insurance, and the necessary repairs. On the positive side, federal rules require mortgage lenders to work with you if you inherited a house. You could simply add your name to the deed and assume the mortgage. If you continue paying the mortgage without having your name on the deed, your credit won’t be impacted at all. Another option to consider, if your credit score is good, is to go for refinancing. That way, you can pay off the existing mortgage while securing a better interest rate.
Renting after inheriting a house in Wake County is also an option
If you opt not to live in the house but aren’t comfortable with selling it, consider renting it out. If you choose to do so, you may need to spend some time and money to convert it into a marketable rental. Ultimately, it might become a nice source of passive income, making the ordeal worth it. On the other hand, keep in mind that being a landlord takes a lot of work. And if you plan on co-owning the property with siblings or hairs, it can be a bit more complicated. Lastly, remember that renting a home changes your tax implications, so make sure to consult with a tax advisor beforehand.
Do a charitable thing and donate the house
One of the less common options, yet an equally viable one, is to donate it. This may be beneficial to you, so make sure to consult a tax professional. Usually, there are two reasons to donate after inheriting a house in Wake County. The first one is charitability, of course. Regardless if you want to donate the house in the memory of the previous owner or have a particular organization in mind, the desire to give should be the main objective. There are also tax deductions that come with donating. This depends on the specifics of the property, but you may be able to deduct a portion of the home value against your income. The remaining value, which can’t be deducted in the current year, carries over into the next five years.