Selling an Inherited Property in Oklahoma

Inheriting a property can be a bittersweet experience. While it may provide financial opportunities, it also comes with responsibilities, including maintenance, legal obligations, and decisions about what to do with the property. Selling an inherited home is often the best solution, but the process can be more complex than a typical home sale.

This page will walk you through everything you need to know about selling an inherited property, from legal considerations to finding the right buyer.

How To Sell An Inherited Property in Oklahoma

If you’ve received a property as an inheritance and are feeling confused about what to do next, you’re not alone. In many states, this property needs to go through probate. Probate is when the court figures out who legally owns the inherited property. This process helps make sure that the estate’s belongings are passed on to the right beneficiaries or heirs. How long this takes can vary a lot, depending on whether there was a will and the laws in your state.

Determine the Executor

If you have inherited a property with a will, figuring out who will be the executor is usually pretty clear. A key part of a will is naming an executor who will make sure the wishes of the person who passed away are followed during probate. Until the Court checks and approves the will, any assets mentioned in it can’t be sold. Once the will gets the green light, the executor can start making decisions based on what the deceased wanted. However, if someone questions the will or if there isn’t one, this can slow things down as the Court needs to step in.

A probate court will choose an individual who is not related to the family to be the estate’s administrator. This person has a role like that of an executor. Their job is to fulfill the wishes of the person who has passed away, as outlined in the will. They also need to settle any debts that the estate has and share out the remaining assets. In some cases, they might decide if any properties need to be sold to cover the estate’s debts, such as unpaid taxes or mortgages.

Decide How to Sell the House

You have a few options when selling an inherited home:

1. List with a Realtor
   
   • Pros: May yield a higher price if the home is in good condition.
   • Cons: Takes time, requires repairs, and involves realtor fees.
2. Sell It Yourself (FSBO)
   
   • Pros: Avoids paying realtor commissions.
   • Cons: Requires marketing, negotiations, and handling paperwork.
3. Sell to a Cash Buyer
   
   • Pros: Fast, hassle-free, and as-is sales with no repairs or fees.
   • Cons: Offers may be slightly below market value.

For many people inheriting a home, selling to a cash buyer is the simplest and fastest solution, especially if they want to avoid delays or additional costs.

Resolve Any Debts

Inheriting a property can be both a blessing and a challenge, especially when it comes to settling a loved one’s debt. After receiving the estate, you may find there are outstanding mortgage balances, liens, or other financial obligations tied to the home. It’s crucial to address these debts promptly to avoid potential legal complications or damage to your own credit. Begin by gathering relevant documents like mortgage statements, tax records, and any liens. Consult with an attorney or a financial advisor who can help you navigate probate laws, ensure proper debt settlement, and guide you through selling or keeping the property. By handling these financial responsibilities with care and professional help, you can ease the burden and protect your family’s legacy.

Clean & Restore the Home

After you have taken ownership of the property, the next important choice is to figure out if you want to live in it, rent it, or sell it. Often, when someone we care about passes away, they leave behind a house that may not be in great condition. Inherited homes are often older and may require significant repairs or updates to attract traditional buyers. Ask yourself:

Is it worth the time and money to fix it up?

Does the property need repairs or renovations?

Do I need to clear out the house before selling?

Not necessarily. Cash buyers like Green Country Home Buyers often purchase properties as-is, so you don’t need to remove every item before the sale.

Do all heirs have to agree in order to sell the property?

No, the Heirs are not required to agree on selling an inherited home or property if a will or probate court has clearly defined ownership. However, if ownership is unclear, like in cases where there is no will or a Court-appointed administrator is involved, then all Heirs must come to a consensus to sell. This also applies to properties that the Court has auctioned off to settle the estate’s debts. If someone buys a home at an auction but one or more Heirs disagree with the sale, the transaction will be paused until the disagreement is resolved and an agreement is reached.

How soon can I sell an inherited property?

If the property is already through probate, you can sell immediately. If not, you’ll need to wait for the probate process to be completed.

How to Settle a Disagreement

When it comes to resolving issues among heirs regarding an estate, having a clear plan is key. The first thing to ensure is that there is an executor appointed. This person is responsible for making sure the wishes of the deceased, as outlined in the will, are respected. With an executor in place, you can avoid conflicts about how to handle the assets. If there isn’t an executor, or if the will is being challenged, the next step might be to consider hiring a mediator. A neutral mediator can help everyone reach an agreement more affordably than going through a lengthy legal process in probate court.

Best Practices

What if the problem lies with the executor? Conflicts can happen when a family member is named as the executor or trustee of a will, which can lead to tensions among relatives. If you’re facing this situation, one solution is for the executor to step down and appoint an independent fiduciary, like an estate-planning attorney, to manage the will. Allowing a neutral person to take over can help prevent conflicts and give everyone a chance to work through their feelings without causing lasting harm to family relationships.

How is inherited property taxed when sold?

In 2020, state and local governments in the U.S. brought in more than $5.3 billion from estate and inheritance taxes. That’s a huge amount! Since the rules can vary a lot from one state to another, it’s important to do your homework. If you receive an unexpected inheritance or are creating your own will, reaching out to a lawyer who understands taxes and estate planning can be very helpful.

State Tax Laws

Every state has its own rules about inheritances. Currently, Oklahoma does not impose a state-level inheritance tax, having phased it out as of January 1, 2010. However, federal estate tax laws may still apply if the inherited assets exceed certain thresholds. Individuals inheriting property must also ensure compliance with Oklahoma’s probate process and property transfer requirements. Consulting a tax professional is advisable to verify whether federal estate taxes or other obligations could affect the inherited property.

Capital Gains Tax on Inherited Property

What exactly is the capital gains tax, and which states have it? The capital gains tax is a tax you pay on the increase in value of assets inherited through an estate, but you only owe this tax when you actually sell the asset for a profit, not when you receive it. This tax is based on the difference between what you sell the property for and what it originally cost. Most states require you to pay this tax on inherited properties, but some may allow exceptions for those selling a property for under a certain price. For instance, in Washington State, there is no capital gains tax on homes or properties sold for less than $250,000. Additionally, there could be other legal options to lower or avoid the capital gains tax in your state, like reinvesting the profits into another property. It’s best to talk to a tax lawyer who understands the rules in your area before you sell your property.

Estate Taxes

An estate tax is a fee that comes out of a person’s estate before anyone can inherit anything. Are you concerned about losing a lot of money from the estate? Don’t worry! In 2023, the estate tax has a minimum limit of $12.92 million for individuals. This means you won’t have to pay any estate tax unless your total taxable estate is more than $12,920,001. Everything under that amount is passed on to heirs without any estate tax. Even though this limit is high, more states are getting rid of their estate tax laws each year, which means they miss out on a lot of money that could help their budgets.

Inheritance Taxes

Only six states impose an inheritance tax, which means you are probably among the fortunate majority who won’t face this situation. However, if you’re in one of those six states—Maryland, Nebraska, Kentucky, New Jersey, Pennsylvania, or Iowa—you will need to pay taxes on any assets or properties you inherit. But there’s good news! If the person who passed away lived in one of the 44 states that do not have this tax, you won’t owe anything, even if you reside in a state that does.

Documents required to sell an inherited property

When selling an inherited property, preparing the necessary documentation is crucial for a smooth transaction. First, you’ll need the decedent’s death certificate, which confirms their passing. If there is a will, you’ll also need a certified copy of it, along with court-issued Letters Testamentary or Letters of Administration granting you legal authority to act on behalf of the estate. Make sure to gather any existing property deeds, mortgage statements, and details of outstanding liens. If multiple heirs are involved, documentation showing the distribution of interests in the estate is essential. Consulting with an attorney or probate professional can help ensure that all paperwork is properly organized and submitted, reducing delays and facilitating a seamless sale.

Is there an easier way to sell?

Absolutely! Green Country Home Buyers is a company that buys houses directly. We have a great reputation for purchasing inherited homes for cash, making the process easy and with fewer costs. Reach out to us today to receive a fair cash offer for your inherited house, condo, or any type of property. We buy homes in all conditions and can assist you with the tricky process of selling a house in probate! Let us help make your home selling journey simple and hassle-free so you can focus on moving forward with your life.

Whether your home faced serious damage from the last storm or has been overlooked for years and requires many updates to be sold, you can relax. Once you accept our fair cash offer, our skilled team will take care of all those costly repairs for you! We simplify the process of selling an inherited house.