How to Sell Land Involving Siblings
What happens when a family member passes and leaves a land inheritance to siblings? The best way to divide the land asset is to sell it and split up the cash. But, selling inheritance property presents special challenges, not to mention emotional distress. Having a plan and enlisting professional help will allow the best outcome for all parties involved. Understand the Process
The Estate must go through probate.
Once through Probate, the court give the executor of the will the authority to act to distribute the estate’s assets and settle the estate’s debts.
Siblings will need to be in agreement to sell.
Obstacles occur when siblings do not mutually agree to sell the property. At this point, a family mediator can help find resolution. One option is for the siblings wanting to retain the property to buy out the other siblings.
If everyone involved in the inheritance agrees the property should be sold, the executor can petition the court to allow the sale and proceed from there.
If you are unfamiliar with the area the land is located, a local real estate agent (especially one that specializes in land) can assess the property and help market the property for sale.
When you sell property you’ve inherited, your tax basis for the property is the home’s value on the day the person who willed it to you died. The difference between that value and the amount you realize from the sale is the gain on which you owe taxes.
Selling an inherited property can be a simple process if the Will addresses the handling of the property in detail. Challenges arise when the Will is not clear on how to handle the disposition of property and the family is not in agreement. SLA has years of experience in addressing inherited property. We can help you through this process and get you to your desired outcome.