In some situations, inheriting property from your parents or other relatives may be more than a godsend. However, in other circumstances, it may be a burden. And if that property or properties are in other states, matters can grow mildly complicated, but also be overcome.
Now, it is time to figure out your plans for this property. What do you want to do? What will you do if you inherit property located in another state? There are many questions that need answering, but the answer boils down to three potential options: retain the property, rent the property or sell the property.
After clearing probate: keep, rent or sell
Perhaps your family already has “survived” the ancillary probate process. Time-consuming and costly, ancillary probate is necessary when inherited properties are located outside of Nevada. Any property must go through probate in the state where that property is located. If there are multiple properties in multiple states, the situation may prove complicated.
Once those properties have cleared ancillary probate, you still wonder what to do with them. The logical options boil down to:
- Retaining the property: This may depend on your financial situation and current living arrangements. Perhaps you want to move into the home, but – if you have siblings – you will have to buy their shares. Remember that as the owner, you are now responsible for mortgage payments, property tax payments, maintenance and repair costs.
- Renting it: Perhaps it is commercial or residential investment properties or even farmland. You may work with property and land management firms to line things up with prospective tenants such as businesses, individuals or farmers and ranchers.
- Selling it: In many cases, this seems like the best option, especially since you may live quite a distance from this property. Also, if there are property co-owners such as siblings, it might be best to sell the property and split the proceeds. You also will likely have some tax matters to confront, too.
You have inherited property far from your home and even several states away. You must determine whether it is realistic to hold on to it whether it is a house, commercial property, empty lots for potential development or farmland. A bit of thought goes into making the right decision.