Putting your house or commercial property on the market is complicated as it is; what about selling a property you've inherited? Australians who have recently come into an estate after the death of a loved one might wonder if selling inherited property is different than regular real estate.
In most ways the process is the same, but there are extra factors – such as capital gains tax – to consider when you're dealing with a deceased estate. If you have inherited a property you wish to sell in Queensland, take a look at these three steps before proceeding.
1. Make sure you're allowed to sell it
It's important that you ensure you have the right to sell the property before making any moves to do so.
Although the will might stipulate that a certain property has been allocated to you, that doesn't mean you're immediately allowed to sell it. In order to take control of and divvy up the property, the will executor (whether that is you or someone else) needs to get probate from the Queensland Supreme Court.
Depending on the case and the desires of the will executor, this can take anywhere from a month to a couple years – what's important is that you ensure you have the right to sell the property before making any moves to do so. A Cairns lawyer can help you with this process.
2. Research the tax situation
Capital gains and inheritance taxes have long been controversial issues in AU. As demonstrated by the news video above, Australia doesn't have inheritance tax like many other countries, but this doesn't necessarily mean you would inherit a property without any financial strings attached.
In some cases, like if the property you receive wasn't the deceased's main dwelling, you might be required to pay certain taxes on the estate, according to ATO. However, Queensland law states that selling an inherited dwelling within two years of the person's death allows you to disregard any capital gains taxes.
3. Get the property inspected
The final step before proceeding like you would with any other property sale is getting an inspection. This process might help you decide whether or not to sell the property – in some cases, beneficiaries realise after inspections that the potential profits from selling would not be worth the costs of repairing and marketing the house, according to Domain.
Figuring out how to sell inherited property in Queensland (and whether or not you should) can be challenging, but a Cairns lawyer will be able to advise you on the best course of action. Get in touch with a representative from WGC today.