Inheriting a house from a loved one is an incredible legacy and a challenging situation. If you have inherited property with other heirs, here are some helpful tips to ensure a smooth transition.
How to Deal with an Inherited Property Amicably
The first step in dealing with an inherited property in Chicago is to consult the will or trust document. Find out who the beneficiaries are in the will. What percentage of the home is designated for each beneficiary? Has the deceased person left instructions on whether to sell the house or keep it among family members?
If specific instructions are not mentioned regarding the property, the executor or trustee is in charge of dealing with it. The executor or trustee has to do what’s best for the property, even if all beneficiaries do not agree.
Here are some of the common ways to split an inherited Chicago home among all beneficiaries:
Sell the Property
The easiest way to deal with an inherited property is to sell the house. Then, you can divide the proceeds among all beneficiaries as per the will. If you’re looking to sell a house fast in Chicago, you can sell it for cash. Cash home buyers in Chicago evaluate the property and close the deal quickly, without waiting months like with a regular estate sale. You can then divide the proceeds among all heirs according to the percentage of shares mentioned in the will.
Rent the Property
Not all of the heirs may want to sell the property. In that case, the next best option may be to lease it and generate rental income from the house. The rental income can then be divided among all beneficiaries as per the will.
Buyout the Property
A buyout can be a sensible option when all beneficiaries are not on the same page. If one heir wants to keep the home, and the others want to sell it, a buyout makes sense. In this situation, the beneficiary who wants to keep the house can buy it from the other heirs by paying their percentage.
Private Arrangement Among Heirs
Disagreeing beneficiaries can discuss the situation among themselves and arrive at an arrangement. For example, a parent may leave behind a primary residence and a vacation home of roughly the same value. The two inheritors may arrive at a decision where one takes the primary residence, and the other takes the vacation home. If they cannot decide who gets what, they can sell the properties and divide the proceeds equally.
If the heirs cannot come to a decision, they may have to involve the court. While a partition lawsuit is cumbersome, it’s often the only choice when beneficiaries cannot agree. The court intervenes and decides the best course of action in the interests of all parties involved.