Steps To Take After Inheriting Real Property
With our estate clients, we view our job not only as protecting your rights under Mississippi law, but also taking the time to understand your situation.
Whether you are serving as an administrator for an estate or an individual beneficiary who inherited land, there’s more at stake than just a real estate contract. This is why we will take the time to educate you about your legal options.
Attending To Any Probate Issues
If you have inherited property, there may be unresolved probate matters. Mississippi law and the chancery courts of equity have jurisdiction over transactions involving real property that is located in the state.
We will get to work investigating whether the property’s title is clear and whether it may be subject to any federal estate taxes or other debt liabilities of the estate. We will also investigate whether there is any mortgage still owed on the property.
Issues When Transferring Title
If you are considering transferring the property to a relative or selling it on the market, you need to understand the tax consequences. As a beneficiary, you typically benefit from a “step-up” in basis, which is the fair market value of the real property at the time you inherited it. You would pay capital gains tax only on the gain, subject to other adjustments such as improvements or depreciation.
Understanding Property Maintenance Issues
If you are considering holding on to the property, you need to understand the ongoing maintenance and property tax responsibilities. The process is generally the most streamlined if you are a surviving spouse. However, title can be transferred to any named beneficiary. We will draw up the deed and record it with the local chancery clerk for you.