Inheriting property can come with many different aspects that have to be dealt with accordingly. In some cases it can allow for greater financial security, and in others it can bring along a series of practical implications that have to be taken into consideration. This, in essence, might be hard to consider as you may be dealing with a rather strenuous and emotional time.
Initially you will have to decide what to do with the property. This usually comes in the form of either selling it, or renting it out. Both of which, come with different legal aspects which also have to be adhered to. An example of this might be facilitating debts. In further examples, you may even have to sell your property to overcome this situation.
Additionally, you may even inherit a property that is already inhabited by tenants. It is vital to understand the legal responsibilities that come with this role. Firstly, you will automatically become their landlord if their tenancy continues. This means you will take on all the responsibilities associated with this new role. It is highly advisable to seek legal and professional advice to ensure that you are complying with all current regulations, especially if this is your first time renting out a property.
If you inherit a property which still has a mortgage outstanding, you will need to ‘officially’ take over the responsibility of making the repayments if you are unable to pay this off. In all cases you must be fully compliant with all tax laws.
There is no hiding the fact that private property inheritance can be a complex matter. Incorrect moves can result in serious financial implications – both personally and with the inherited property. There are also inferences with all the personal involved in inheriting property. Relationships with existing tenants might fail and even put a strain on your own family life. These issues are not only time consuming but could also lead to you being liable for prosecution – if you have mishandled your tenants legally.
Contrariwise, if handled correctly, inheriting property can lead to a very positive outcome for the beneficiary. A major and crucial piece of advice is to always seek professional legal guidance, as the results can sometimes be worse than simply a loss in the value of your inheritance.
Getting good advice and guidance will ensure that you can make the most of the ‘gift’ intended for you, this is not the time to cut corners and will minimise the chance of even more upheaval, distress and grief during what may be a very traumatic time.