How to Navigate Inherited Land
by Caroline Kirby
Inheriting land can be tricky and bring on a lot of difficult decisions, especially if it was inherited after the death of a loved one. Many new inherited landowners can be left to deal with their emotions and a lot of questions while needing to make some big choices in a short amount of time.
There are a lot of moving pieces to consider—inheriting land often requires you to deal with emotions on top of tax considerations, transfer of ownership, as well as long-term investment options.
We want to focus on the long-term investment options first.
Your Options After Inheriting Land
There are three main options when inheriting land; hold, sell, or lease.
- Hold the Land: If you want to hold the land you should consult a tax advisor with experience in real estate as well as a lawyer who can help you through understanding how the estate was settled and any obligations you may not have known about prior to inheritance.
- Lease the Land: Your second option stems off of number one; if you choose to hold the land that doesn’t mean that you have to tend to it or even use it, but rather you can lease it to someone else and simply utilize the property as an investment. This is often a popular option, but it can be challenging to determine a fair rental rate. Be sure to consult the proper tax and legal professional for guidance here as well.
- Sell the Land: If you’ve decided that it’s in your best interest to let go of the land there are a few things to be aware of. You must determine what taxes you may potentially have to pay from any earnings you make from the sale.
Learning you’re the recipient of an unexpected piece of real estate can come with a few surprises. Here are some examples of things people don’t expect when dealing with inherited property.
- Community Fees: If the lot you inherited is in a planned community you can expect to pay community fees or HOA fees related to the property.
- Liability for Unpaid Fees: While we’re talking about community fees it’s important to recognize that you may be legally responsible for handling prior unpaid fees.
- Responsibility to Maintain: Even if your new land is on the other side of the country you’re responsible for keeping it maintained and carrying insurance.
Before making any final decision on what to do with your land be sure to reflect on what it is you want and what you’re willing to deal with to achieve that outcome. Whether you decide to hold, lease, or sell your land, we can help! Check out our blog for endless resources on maintaining and marketing your land among many other topics.
LandHub.com uses the latest technology and simple features to connect thousands of buyers and sellers. Learn more about our plans here and see which option best fits your needs! 85% of land buyers look online, will they find yours?
Like this article? Please feel free to share or post a link on your site: https://www.landhub.com/blog/how-to-navigate-inherited-land/