Inheriting a house in Atlanta
Inheriting a house is inherently complicated. From the emotional complications of dealing with a loved one’s passing to the legal complications of dealing with the probate process and tax implications, an inherited house can be both a blessing and a burden. Find out what you can expect when you inherit a house in Atlanta, how the probate process works, and how you can sell your inherited house easily.
How does Georgia's transfer on death deed work?
On July 1, 2024, Georgia began allowing the use of a “transfer on death deed” (TODD), also known as a beneficiary deed. In some parts of the United States, this is known as a Lady Bird Deed. This type of deed lets the property owner designate individuals as beneficiaries to receive the property after the passing of the current owner. These individuals are known as designated grantee beneficiaries.
A TODD is accepted once a few key steps are completed. These include providing proof of the owner's death, confirming whether the owner and beneficiary were married at the time of death, and including a legal description of the property.
When there are multiple beneficiaries, the assets will be divided amongst them according to the terms of the TODD or the will.
In Georgia, a TODD provision will typically supersede a will.
Do you need to go through probate?
When you inherit a house, you may need to go through the probate process, which begins when the decedent passes away. Once a petition is filed with the court, the executor will be identified. The executor may be assigned in the will. If there is no will, a probate judge will nominate one.
The executor will be responsible for:
- Notifying the heirs
- Publishing a notice for any creditors
- Taking full inventory of the estate, including banking and retirement accounts, stocks and bonds, real estate, personal effects, etc.
- Securing all assets
If there is a will, it must be filed with the court and authenticated, which often requires a court hearing. During this hearing, the will may be contested. If it is contested, another hearing may be set, where the party that contests the will needs to prove its invalidity. If there are no challenges to the will, or if the court decides the will is valid, the executor will then be able to pay off outstanding debts and distribute assets.
If there is no will, the original owner is considered to have died intestate. This means the property will pass to heirs according to Georgia’s intestacy laws.
After outstanding debts are paid and remaining assets are distributed, the executor submits receipts and records of everything to the probate court.
You may be able to avoid probate using a TODD, though you will still be responsible for any outstanding mortgage payments or liens on the house. It’s important to note that TODD beneficiaries need to file an affidavit within the first 9 months after the death of the original owner. If no affidavit is filed in that time, the deed will be issued to whomever receives the estate, whether that is a buyer, heir, or beneficiary.
What are the tax implications of inheriting a house?
Inheriting a house in Atlanta means you will be responsible for paying outstanding debts and taxes on the property, as well as keeping up with recurring payments. If you plan on selling an inherited property, you will be expected to report the sale to the IRS, as well as pay any taxes or fees that come from the property sale.
- Inheritance tax: Georgia has no inheritance tax. If you’re selling your inherited house in Atlanta, you only need to consider the possibility of paying federal estate tax if the estate exceeds a valuation of $13.8 million, according to Houzeo.
- Capital gains tax: If the fair market value of the property increased since the death date, you may need to pay capital gains tax. Capital gains tax is applied on a stepped-up basis. This means you are taxed, according to income level, only on the difference in the property’s appreciation after it was inherited.
Please keep in mind that you will have to report proceeds as taxable income. If there are multiple beneficiaries, and an agreement can’t be reached in regard to the sale of the property, you may need to consult with an attorney that specializes in probate and estate law.
Sell your inherited house in Atlanta the easy way.
Inheriting a house can be tricky, and selling it can feel even more complicated. When you want to simplify the selling process, work with We Buy Ugly Houses® in Atlanta. We’re known as America's trusted home buyer, and we’re proud of our nationwide 95%* customer satisfaction rating from sellers who responded to our post-sale survey. With our 3-step home-buying process, you can go from offer to closing quickly, sometimes in as little as 3 weeks.
It works like this:
- Get a consultation: Give us a call, and one of our local property buyers will come over for a free assessment of your property, including its condition and features.
- Receive an offer: Once we’ve seen your house, we are able to make an offer, sometimes on the same day we come over. Our offers are based on our walkthrough of your property, current market trends, and other factors.
- Schedule a closing date: If you accept our offer, we’ll work with you to figure out a quick closing date that best fits your selling timeline.
When you sell your house off-market with We Buy Ugly Houses, you get a home sale with fewer upfront selling costs. You can even skip making home improvements and sell your house “as is.”
We don’t charge commissions or hidden fees, and we pay all typical closing costs. While our offers may be below market value, what we provide in return is unmatched speed, convenience, and a stress-free selling process. We prioritize your needs with fast closings, no repairs, and great customer service, so you can move forward without the usual hassles of selling a home.
To get a better idea of what it’s like to sell your house with us, read some of our verified seller reviews.
Ready to sell your inherited house in Atlanta? Contact us today for a free consultation and get started on a fast, hassle-free home sale.
This blog is for informational purposes only and should not be considered legal advice.
