Going through the loss of a cherished family member or a close friend is tough. This challenging time can be even more challenging when you discover you’ve inherited a property. To help you stay focused during this difficult time, we’ve put together a list of five important steps to take right away after inheriting a house in Colorado.
Lines of Communication
Talking openly is really important when you and other heirs have inherited a house in Colorado.
Even with today’s fancy tech that allows us to meet online, heirs can still disagree on what to do with the property. Emotions can run high in these conversations. It’s helpful to stick to the facts when discussing what to do. If you know ahead of time that there might be disagreements, or if discussions start to get hot, it could be a good idea to bring in a mediator to help everyone find common ground.
A single heir has the power to force the sale of the house through foreclosure, but this usually results in everyone getting only about two-thirds of what the house is really worth.
Probate
When someone passes away without a will, their house or any other property they owned will usually need to go through probate in Colorado. However if the deceased created a living trust and put the house into it, the probate process can be greatly simplified.
Probate is the legal process that helps finalize a person’s matters after they die. To start probate, the court has to name someone as the executor or personal representative of the estate. First, the executor has to gather all the assets and keep track of them during the probate process. They also need to keep in touch with the beneficiaries to provide updates. Any debts owed to creditors need to be paid, along with any estate taxes, if applicable. The probate court will also handle any disagreements among heirs regarding the estate, and when everything is settled, the assets can finally be distributed.
Executor
Being chosen as an executor when you inherit a house in Colorado is a big responsibility.
You need to create a plan for how to talk with the other heirs. You’ll also need to set up accounting for the estate or trust that can be presented during probate. As the executor, you’ll gather all the assets and work closely with the attorney, accountant, and any other professionals needed to finish the process.
It’s important to take every step to avoid mistakes and follow all laws, making sure you don’t act in your own interest. Your main job in this role is to act honestly and respect any existing will or trust, carefully following the instructions and wishes of the person who passed away.
Affordability
When you inherit a house in Colorado, it’s important to get a grip on the financial side right away. Besides keeping up with the mortgage and insurance payments, you’ll also need to gather information on any debts tied to the property. This includes not just the mortgage, but also any repair costs or liens.
Don’t forget about taxes either! The IRS has a special tax on capital gains, which is based on the difference between what the home was bought for and its current market value. the age and condition of the home are also crucial since older homes tend to have to high repair bills. If it’s vacant and you’re far away or short on time, consider hiring someone to look after the property or even hiring a professional property management company to keep it from falling into disrepair and therefore losing value.
Hold or Sell
If you’ve chosen not to keep the property, RealPro HomeBuyers can offer you a great deal and support you through the whole selling journey after inheriting a home in Colorado. Here at RealPro HomeBuyers, we recognize that when you lose a loved one, it’s a tough time.
When you partner with RealPro HomeBuyers, you can close in just a few days, freeing you from the burdens tied to the property. We take care to clarify every detail in our offer, ensuring you find it fair. Our contracts are simple, with no commissions or hidden fees. Our aim is to make everything easy for you. Just leave behind what you don’t want to keep, and we will handle the rest.
No matter what path you choose, RealPro HomeBuyers is here to provide you with guidance and support during what can be a difficult time. Feel free to ask any questions or share your concerns with us—there’s no pressure. And if you’re feeling overwhelmed, don’t hesitate to reach out for assistance.
Our team of dedicated experts here at RealPro HomeBuyers is eager to share our knowledge and support you throughout this process. Just call us at (720) 740-2575 or send us a message to find out how we can help you get the inevitable challenges—and joys—associated with inheriting a house or other property.