What Estate Planning Steps Should I Take After Inheriting Property in Texas?
Farias Law Firm is committed to helping clients be aware of the next steps they should take after they inherit property, navigating them through the entire estate planning process to ensure their new assets are sufficiently protected. Individuals who’ve recently inherited property should understand some general legal guidelines and basics to optimally plan for and manage their inheritance in Texas.
Call 713-226-7999 today to get trusted guidance and start protecting your inheritance.
How Do I Confirm Legal Ownership of Inherited Property?
You can confirm legal ownership of your inherited property by understanding how it was transferred to you. Property in Texas can pass through various means, such as intestate succession (in the case of no estate plan) or a will or trust.
Before you make any decisions relevant to your inherited property, it’s recommended to do the following:
- Carefully go over the will or trust of the deceased.
- File all required documents with the relevant probate court.
- Make sure any issues with titles or liens on the property are cleared.
- Confirm with an attorney that your name is properly listed as the legal owner.
Why Should I Assess the Property’s Condition and Value?
After you’ve clearly established ownership, it’s important to complete a property evaluation. The property evaluation process may include having a professional appraise the value of the property, inspecting for any code violations or needed repairs, and generating an understanding of the property’s market value in case you wish to rent or sell it.
An experienced attorney can help you adequately appraise the property to understand its value. This is essential for future tax planning, as well as making decisions about how you want to utilize, transfer, or sell the asset.
Do I Need to Update My Estate Plan After Inheriting Property?
Yes, you need to update your estate plan after inheriting property. This is because any major life event, such as a significant change in assets, is a good time to create or revise an existing estate plan.
A skilled estate planning attorney at Farias Law Firm can assist you with going over your entire estate plan, including wills and trusts so that everything is up to date and reflective of your new asset portfolio.
A robust updated estate plan should include the following:
- A named beneficiary for the property.
- The newly inherited property.
- Potential guardians or instructions for care if you have minor dependents.
What Tax Implications Should I Be Aware of?
Texas state law states that property taxes should be paid based on the appraised value of real estate. Depending on factors like how you are using the property, you could be eligible for certain exceptions. Should you decide to sell or rent the inherited asset, you may be facing additional tax considerations, such as increased income tax or capital gains taxes.
An attorney from our firm can leverage our strong network of Texas financial professionals to ensure your liabilities are minimized.
Should I Keep, Sell, or Transfer the Property?
Just because you have inherited a property does not mean that you’re required to hold on to it forever. Depending on your financial situation, family dynamics, and goals, you may decide to live in the property, rent it out to get additional income, transfer it to someone else, or sell it and use the proceeds for another project. Whatever you decide to do, you should ensure your decision is aligned with your long-term financial and estate planning goals.
How Can I Legally Protect My Inherited Property?
You can legally protect your inherited property by creating a trust, transfer-on-death deed, or including it in a durable power of attorney. These are powerful estate planning tools that can help your property avoid going through probate, protect it from greedy creditors, and make sure it is transitioned smoothly and efficiently in the event of incapacitation.
How Can Farias Law Firm Help Me?
We understand just how legally complex inheritance can be at Farias Law Firm. Therefore, we work closely with our clients to establish a clear title, revise and update existing estate plans, and ensure that all inherited property is adequately integrated into a broader legal and financial strategy.
What’s the First Step to Take After Inheriting Property?
After inheriting property in Texas, don’t hesitate to contact Farias Law Firm. Call 713-226-7999 to schedule your consultation and take the right estate planning steps. With our legal team on your side, you can rest assured that you are getting an experienced legal team that can help you explore the full extent of your legal options.