Property Inheritance: A Complete Guide

Inheritance can be a complex and emotional process, especially when it involves real estate. Whether you've inherited a property or are planning your estate, understanding the ins and outs of inherited real estate is crucial. At ReZen, we specialize in property inheritance operations, and we're here to help you make informed decisions that maximize the value of your inherited property.

What is Property Inheritance?

Property inheritance occurs when real estate is passed down from one generation to another, typically through a will or trust. This process can bring both opportunities and challenges, depending on the property's condition, location, and your personal circumstances. 

Legal Aspects of Inheritance

• Probate Process: Inheritance often involves probate, a legal process where a will is reviewed, and assets are distributed. Understanding probate is essential to navigate the legal requirements smoothly., that is why we have a dedicated blog with all the details you may need, available here..
• Tax Implications: Inherited properties may be subject to estate taxes, capital gains taxes, and other financial considerations. Consult with a tax professional to understand your obligations and potential tax benefits. 

Evaluating the Inherited Property

Condition Assessment

1. Conduct a thorough inspection to assess the property's condition. Identify any repairs or renovations needed to make the property market-ready.
2. Consider the cost of necessary improvements and whether they align with your budget and goals.

Options for Inherited Properties

Selling the Property

Selling an inherited property can provide immediate financial relief and eliminate the responsibilities of ownership.The property must be prepared for sale by making necessary repairs, staging, and marketing it effectively. We could help you sell your property or even buy it from you directly for cash, more information can be found here...

Renting the Property

Renting can generate a steady income stream while allowing the property to appreciate over time. Consider the responsibilities of being a landlord, including maintenance, tenant management, and legal compliance. We at ReZen offer full service property management, where you can have all the benefits without the headaches, click here to learn more...

Introduction to Property Inheritance in Wisconsin

• • Wisconsin does not have an inheritance tax, but if you inherit property from another state, you might be subject to that state's inheritance tax​.
  • In Wisconsin, both probate and non-probate processes are used to transfer property from a deceased person to their heirs​.
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Understanding Probate and Non-Probate Processes

Probate Process:

2. • What is Probate?: Probate is the legal process for distributing a deceased person's estate. It involves validating the will (if one exists), inventorying the estate, paying debts and taxes, and distributing the remaining property as the will (or state law, if there is no will) directs​.
   • When is Probate Required?: Not all estates must go through probate. Estates valued at less than $50,000 and those passing through a living trust can avoid formal probate. Assets with designated beneficiaries, such as life insurance policies and retirement accounts, also bypass probate​.
   • How Long Does Probate Take?: The duration of probate can range from six months to two years, depending on the complexity of the estate and any disputes among beneficiaries​.

   Non-Probate Transfers:

   • Living Trusts: Property in a living trust does not go through probate. This can expedite the transfer of assets to beneficiaries​.
   • Joint Ownership with Right of Survivorship: Property owned jointly with right of survivorship automatically passes to the surviving owner without probate​.
   • Payable on Death (POD) Accounts: Bank accounts and other financial holdings with a POD designation transfer directly to the named beneficiary upon death​ 

Intestate Succession

• • Intestate Succession Laws: If someone dies without a will, Wisconsin's intestate succession laws determine the distribution of their estate. The priority is usually given to the spouse and children, followed by parents, siblings, and other relatives​,
  • Exceptions and Special Cases: Special rules apply if the deceased had children from a previous marriage, impacting how the estate is divided between the surviving spouse and children from previous relationships​ 

Executor Duties and Compensation

• • Responsibilities: The executor (or personal representative) manages the probate process, which includes identifying assets, notifying creditors and beneficiaries, paying debts, and distributing the estate​.
  • Compensation: In Wisconsin, executors can be compensated 2% of the estate’s value, although they might choose to waive this fee, especially if they are also beneficiaries​.

Tax Considerations

• • No Inheritance Tax: Wisconsin does not impose an inheritance tax. However, beneficiaries may still be subject to federal estate taxes if the estate exceeds the exemption limit​.

Additional Resources

• • When to Seek Help: It's advisable to consult with an estate planning or probate attorney, especially in cases involving complex estates, disputes among heirs, or significant tax implications​. 

Empowering Your Home Sale with ReZen

Inheriting a property can be both a blessing and a challenge. By understanding your options and making informed decisions, you can turn an inherited property into a valuable asset. Whether you choose to sell, rent, or flip the property, ReZen is here to guide you every step of the way. Contact us today to learn more about how we can help you maximize the value of your inherited property.

Ready to flip your inherited property? Contact us today for a free consultation and let us help you turn your inheritance into a profitable investment!

Let's work together, we know this can be a complex process, we are here to make it easier for you and give you instant profit.

Learn more about what we can offer HERE