Inheriting a House From a Will

By: Joshua Campbell

Inheriting a House From a Will

Tags: Real Estate, buying, selling, real estate tips, residential, commercial, painting, renovations, community, agent, leaving your mark, pre approval, realtor, knowledge broker, knowledge, broker

The passing of a loved one is a difficult time. Unfortunately, this time can become even more confusing and overwhelming when you inherit a house from the deceased individual. If you are given a house in a will, what does this mean for you? What are the steps you need to take? Are there specific taxes you need to pay?
 
Here’s what you need to know when you inherit a house from a will.

How the Estate is Divided 

When an individual dies, the distribution of property is followed as described in the individual's will. Before money or property is given, the funeral and burial must take place and all outstanding debts will be repaid with the estate. Keep in mind that if you are named as the individual to inherit certain items, such as a house, you may be required to provide proof that you are the person named in the will.
 

If You Inherit a Home

If You Inherit A Home  

One benefit of inheriting a home in Canada is that you do not have to pay any inheritance taxes or fees. This means you do not have to pay any money to make the property your own. You also do not have to pay any fees to transfer the name of the property into your own name. However, when you inherit a house, the responsibility of the property becomes your own. This means that you are responsible for all the repairs and maintenance on the property, all future taxes, insurance premiums, and the potential debt on the home.
 

What If I Wish to Sell the House?

What If I Wish to Sell the House? 
 
Just because you inherit the home does not mean you must keep it. Selling the house is an option if you don’t have the time or energy to care for the house or you just don’t need the extra space. Although, if you do wish to sell the inherited home, you will be charged a capital gains tax. This is a tax on the market value of the home. You will be taxed from when you first inherited the house until you decided to sell. Be prepared to pay 50% of this value at the time of the sale. If you wish to pay very little of this tax, you will want to sell the home very quickly after inheriting it.
 
You may not be required to pay this tax if you choose to live in the home and use it as your primary residence for some time. If you choose to keep the home and rent it out to make an additional income, you may be taxed on this income as you are making money on the property.
 
My goal as your Realtor and Knowledge Broker is to cultivate an open source of information between us. Knowledge is power and creates experts and understanding. Do you want the power? Connect with me here on my website or on social media at “@knowledgebrkr”.
 

My knowledge becomes your asset and my hard work is your vehicle to success.”
 
JOSHUA CAMPBELL (@knowledgebrkr)
Real Estate Broker
Coldwell Banker The Real Estate Centre, Brokerage
www.KnowledgeBroker.ca
249 Avenue Road • Newmarket, ON L3Y 1N8

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