Dealing with the loss of a beloved family member or very close friend is a stressful time that can become even more complicated by suddenly finding yourself overwhelmed in dealing with an inheritance. The inheritance may consist of simpler things to deal with such as cash, cars, or jewelry, or much more complex things such as inheried houes or inherited apartment in Los Angeles. At first, we realize you may be delighted that a loved on has left you a property in Los Angeles. But since you’ve never been through inheriting a property before, we understand that you might then realize that you don’t know where to start. It may be challenging to focus, so we have outlined five things to do immediately after inheriting a house in Los Angeles.
Lines of Communication
Communication truly is the key to success when dealing with other heirs after inheriting a house in Los Angeles. Despite the modern conveniences of technology that eliminate the problems of heirs being far distances apart through virtual meetings, it is still common for multiple heirs to have differing opinions on what to do with a house, apartment, or commercial rental property. Also, prior relationship dynamics might also cloud heirs’ decison making to arrive at a mutually agreed upon solution with the inherited property. Emotions, too, can play a role in how these communications may play out. It is crucial to keep the focus of these discussions on facts. If you are aware in advance of conflicting dynamics, or it becomes apparent that things are taking a turn for the worse, it may be worth hiring a mediator the help during negotiations. One heir can force the sale of the property through foreclosure. However, the profits from this approach would be dismal, usually yielding around two-thirds of the fair market value (FMV).
Probate
When there are assets to be distributed, unless your loved one sets up a living trust and the acquisition is funded into the trust, you must file probate following the inheritance of a house in Los Angeles. Probate is the settling of the affairs of a decedent in court. For probate to begin in California, the court must legally establish an executor, administrator, or personal representative of the estate. Firstly, there must be collecting and accounting of the assets during the probate process. There must also be communication with the beneficiaries, which provides an accounting. Any claims from creditors must be satisfied along with the settlement of estate taxes if any. The probate court must also resolve disputes between any heirs for the trust or estate and, finally, the assets distributed.
Executor or Administrator
Being named an executor when you inherit a house in Los Angeles is an enormous responsibility. You have a legal responsibility to make decisions in the best interest of the estate, based on the what was articulated in the will. You must design and execute the plan for communications among the heirs. You will also need to develop the accounting methods for the trust or estate to be delivered when called for during probate. As the executor, you will have to gather the assets and also establish a relationship with the attorney, accountant, and other necessary professionals to complete the process. Be careful that you take every step possible to avoid mismanagement and follow all laws and not take any steps in your self-interest. Your prime directive in this position is to act above reproach and honor the will or trust, carefully adhering to the documents that are relevant and the intent of the deceased as outlined.
When there is no will, a probate attorney petitions the courts so that one or many of the heirs can be administrators of the estate. The key difference is that an administrator is appointed by the courts (as a result of filing a petition and having a court hearing), while the executor was appointed by the deceased to handle the affairs of the estate after death.
Affordability – Liens, Tax Bills, Maintenance
It is imperative for a beneficiary in the State of California to understand the financial aspects immediately upon inheriting a house in Los Angeles. California is one of the 3rd most expensive state to live in, based on cost of living, so understanding your costs ahead of time can help you determine if you can handle the inherited property.
In addition to paying the mortgage and insurance, you will need to crunch the numbers on any additional debt associated with the property. In addition to the mortgage, obligations for major repairs, or liens on the estate. You should also consider tax liabilities. The IRS charges a specialized tax on capital gains, calculated on the difference between the original purchase price and the current FMV. You should be ready to pay out-of-pocket if you are considering keeping the property.
Additionally, the condition and age of the property matter as homes age, and repair expenses can be overwhelming. If time or distance is at issue, you should also account for hiring caretakers or hiring a professional property management service if you hold the property. Below is a full list of regular expenses you should be well positioned to incur.
- Utility bills such as gas, electric, water, and trash pickup
- Major repairs such as plumbing, roof, or major damage
- Tenant attorneys in the case of problem tenants
- Landscapers, arborists
- Pest control
- Property management
Hold or Sell Inherited Property to Cash Out
If you have decided against holding the California property – Fair Sale Homes will pay a great price and help you through the entire selling process after inheriting a house in Los Angeles. Fair Sale Homes understands that heirs need to move on with life and lose a loved one at such a difficult time. When you work with Fair Sale Homes, usually closing in mere days, you can be relieved of the burdens that came with the property. At Fair Sale Homes, we take the time to explain every figure used to reach our offer and that you agree it is fair.
Fair Sale Homes uses straightforward contracts with no commissions or hidden fees because our goal is to make the process easy and stress free. Fair Sale Homes will take care of everything, just leave whatever you do not want to keep in the home and walk away. Whichever way you decide to go, Fair Sale Homes is happy to help guide you. Fair Sale Homes will answer any questions or concerns you may have with no obligation. There is nothing wrong with reaching out for help with any questions you may have if you feel overwhelmed with any task. You will find dedicated experts willing to share their experience and help you along the way at Fair Sale Homes.
Just give Fair Sale Homes a call at (626) 863-7006 or send us a message to learn how to solve your inheritance problems.