What You Need to Know About Inheriting Real Estate in Santa Cruz

Inheriting real estate is rarely as wonderful as it may appear in movies. The responsibilities that come along with this gift can be extremely overwhelming, especially if it is an older property in a state of disrepair. While your loved one or close friend may have had the best of intentions, often the property is an emotional and financial burden and is unwanted. If you have inherited property, here is some important information you need to know about inheriting real estate in Santa Cruz.

Financial Responsibility

One thing you should know about inheriting real estate in Santa Cruz is that the recipient of an inheritance of real estate is financially responsible for the property. This includes any outstanding debts attached to the property, including liens. Additionally, you are now responsible for all upkeep. If the property is an investment for rental income you may now also be taking on the duties of being a landlord, which brings along more responsibilities and demands on your time. You will also owe property taxes and possible homeowner’s or property owner’s association fees. Often these associations have strict guidelines that must be adhered to regarding the maintenance and appearance of the property.

Repairs

The frequency and expense of repairs begin to increase at a quicker pace as homes age. This in turn increases the risks and expenses involved with inheriting real estate in Santa Cruz that is not new or in pristine condition. Whether your intent is to live in the property or list the property, you should take steps to educate yourself on the condition of the home from the foundation to the top of the roof. You will want to save yourself from catastrophe by investing in hiring a professional inspector to fully understand the task that lay ahead. It is highly recommended that you contact at least three professionals for each type of repair. Keeping in mind the costs of holding a property continue despite the status of the repairs, be certain to get estimates of both the time frame and total overall cost involved. 

Clearing Personal Property

Inheriting real estate in Santa Cruz can be a very emotional time and may even make it difficult or impossible for some to even enter the property. Regrettably, you will need to either remove all of the personal property of the deceased from the property yourself or hire professionals. Depending on the condition of the property, and the tendencies of your benefactor, this could literally mean going through mountains, clutter and decades with of belongings. Delaying the process to avoid painful memories can be extremely costly, delaying repairs on the property lowers the value as it continues to deteriorate.

Taxation

Whether or not you believe you believe you will personally ever inherit real estate, it is one of the most common items passed on and the tax implications are something everyone should have at least general knowledge about inheriting real estate in Santa Cruz. Under the Unified Gift and Estate Tax system, estate tax is based on the value of property transferred through inheritance, which is calculated based on specific guidelines and includes possible deductions. While often no federal estate tax is owed as the beneficiary, this is not always the case. Every American currently is allowed to inherit up to 11.18 million. You will also want to be certain to investigate gift tax as well. Additionally, there are several states which do have estate taxes, so familiarizing yourself with these laws may be helpful in the future.

Purchasing Other Property

Because you incur the financial responsibilities along with the property, if you were on target to purchase your dream home, everything may have just changed dramatically. One of the major changes may just be in the eyes of your lender when inheriting real estate in Santa Cruz. Depending on the remainder of the mortgage and any other expenses that are now in your name, your debt to income ratio may now mean you no longer meet the guidelines to qualify for a loan. Additionally, the outlay for repairs is likely to deplete whatever savings you have managed to gather in anticipation of your plans.

For many, holding onto an inheritance of real property is much too time-consuming or simply not financially possible. There is a simple and quick solution that will easily eliminate any concerns about inheriting real estate in Santa Cruz. Working with Parker Larsen Properties - Santa Cruz Homes For Sale Expert means total convenience, with no showings or open houses. Just pack what you want and leave the rest behind. Parker Larsen Properties - Santa Cruz Homes For Sale Expert will help you with the paperwork and make the entire process easy, explaining every step along the way. The price Parker Larsen Properties - Santa Cruz Homes For Sale Expert offers is what you will receive at closing. Just send us a message or call Parker Larsen Properties - Santa Cruz Homes For Sale Expert at (831) 419-9087 to discuss the market value of the property and the possible options of selling your unwanted inherited property. 

Parker Larsen DRE# 02155012

Parker Larsen (DRE# 02155012) has lived and worked locally in Santa Cruz for over 25 years since his family moved \"over the hill\" from Woodside to Aptos in 1998. A four-year Aptos High School varsity tennis player, Parker lead his team to win the league championships all four years while winning the individual singles title twice. He graduated with academic honors from Aptos High School - \"It\'s A Great Day To Be A Mariner!\" - and then UC Santa Cruz where he earned his Legal Studies BA and continued his tennis career. His efforts won the UCSC Banana Slugs a team National Championship and coined him his coveted \"All-American Athlete\" status. Aspiring for financial freedom and building from lessons learned on court and in the classroom - he applied his determination and focus to real estate, technology, and entrepreneurialism. Now, with over 15 years of real estate industry experience across a variety of proficiencies including sales, marketing, property management, deal analyzation, and acquisitions – he manages his own investment portfolio while passionately helping others achieve their real estate goals and dreams.

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