If you plan to inherit a home, you might wonder what to do with it. You essentially have four options: sell it, rent it, move into it or give it to the bank.
If you choose to sell the property, the process might be more complicated than you expect. Keep reading to learn more about the process of selling or foreclosing inherited real estate.
Is probate required?
Minnesota law requires the real estate to enter probate unless the title is under joint tenancy with the right of survivorship or set up as a trust. A will does not negate the need for probate in Minnesota. The court still needs to settle any real property the deceased owned. First, you need to determine whether you want formal or informal probate.
Formal probate is for complex or contested estates that need a judge to determine the correct allocation of property. In these scenarios, most people require the professional help of an experienced probate attorney.
Informal probate is suitable for most situations. No judge or court supervision is necessary if there is a drafted will or very little property to administer.
Once you determine who rightfully owns the property, there might be no equity to profit from after you resolve the decedent’s debts. In this case, you must allow the home to foreclose with the help of an attorney. However, if you decide to sell the house, every heir must agree on the terms.
Selling an inherited house is not as simple as putting it on the market. First, the state of Minnesota must recognize that you legally own the property. In the case of multiple heirs, you cannot sell the property unless everyone agrees.