Property inheritance is one of the most challenging issues encountered in the real estate world as a whole. This is because when the original property owner is no longer alive, the transfer of ownership becomes a rather unusual one. It is further complicated by factors such as the in existence of a written will, lack of estate planning, estate tax issues, unreliable trustees, issues with property titles, and disputes amongst the assumed beneficiaries or family members. Most of these complications also apply when it comes to the inheritance of other tangible and intangible assets. With the right information at your disposal, however, navigating the process of property inheritance becomes easier. In this article, we’ll be highlighting a few steps you should take if you want to inherit property.
What to Do if You Inherit Property
Legal Ownership
Lawfully speaking, if an asset does not bear your name, it is not yours! The first thing you should do when you inherit property is to ensure that you get it transferred to your name. Inherited assets can either be movable or immovable. Under probate law, the movable property should be transferred to the name of the beneficiary while the immovable should be transferred and changed to the name of the beneficiary in the appropriate government office.
But more often than not, the probate process can be a rather complex one to navigate without legal help, so having someone who knows Michigan probate laws, or the laws wherever you are, available to ask for help and advice could be a wise move.
In the absence of a will or trust, even the executor or beneficiaries can find it hard to navigate the process while still coping with grief. If you visit this website, you will notice that this is where an estate planning lawyer or probate attorney can help. They can help you in various ways throughout the process, including gathering and securing assets, obtaining valuations, addressing pending claims, addressing tax issues, and assisting in asset distribution.
Remember, the property will only be transferred to your name if you have proof that the property is legally yours. The executor is to provide the will or supporting documentation as substantial proof that you legally inherited the property. In cases where there is no will as a supportive document, the legal heirs can pick one person who will represent them in obtaining the necessary legal documents for the estate. They will then decide how they will divide the estate amongst themselves or else, settle the matter in court.
Depending on the situation, various considerations may be taken in the probate process. For instance, the laws that apply to the inheritance of acquired wealth may differ from those that apply to inherited wealth. This is all the more reason to seek legal assistance when dealing with property inheritance matters.
Documentation
Beneficiaries are required to provide tangible proof of the ownership of the property so that it is transferred in their name. The paperwork should be legally documented in the registrar’s office. The documents to take to the registrar’s office, in this case, are the departed’s Will or the probate certificate if there is no Will. In some cases, an affidavit is needed in the absence of a will. A “no objection certificate” from other possible beneficiaries or heirs may also be needed to prove that no one contests the succession or transfer process. If there was any sort of transaction with other heirs, this must be indicated in the transfer papers. This step should basically transfer the property in your name.
Mutation Property Title
Once done with the above process, you will need to apply for a mutation property title in the land revenue records. This is just a simple way of evidentiary value on a property. Remember, the property owner has changed, but the property is immovable. In addition to that, if you need utility connection services or property tax payment verification, the legal documents are required. The availability of the documents makes the mutation process faster and easier.
Consider Liabilities
When inheriting property, it is important to find out whether there are any outstanding liabilities like home loans, land rates when inheriting a house, and so forth. More often than not, people inherit property only to end up with regrets and frustration that come with due liabilities. If the property you inherited has an outstanding loan, you will need to clear it to claim ownership completely. On the same note, you’ll be lucky if loan insurance was in place as the insurance company will clear the debt. In this case, all you’ll need is to pursue the clearance certificate and the original documents of the property from the lender.
On the other hand, if the property is on a lease, the terms and conditions of the lease are directly transferred to the beneficiaries. If there are any pending issues on the property, you become part of it by virtue of inheritance.
From the above piece, you can clearly tell that inheritance is not a bed of roses. It is marred by certain challenges and requires full-throttle action rather than reaction. With the above information, you can possibly have a smooth sail and peace of mind after inheriting property.
