What You Need to Know About Probate and Selling a House
Selling a house can be a stressful process, and when the property has been left through probate, it can become even more complicated. Probate is the process of administering the estate of a deceased person according to their will. It can involve bidding wars, legal paperwork and complex procedures which must be followed by law. This article will provide an overview of what home sellers need to know about selling a house through probate.
The Probate Process
The first step in selling a house through probate is for the executor (the person appointed to carry out the wishes of the deceased) to obtain a grant of probate from the court. This grants them legal authority over the estate, including any real estate that was owned. The executor then needs to collect all relevant documents relating to the property, such as title deeds and energy performance certificates, in order for it to be sold.
Once these have been obtained and all relevant taxes have been paid, the executor can begin advertising the property on the market with an estate agent or online property portals such as Rightmove or Zoopla. Depending on how much interest is generated in the property, there may be multiple bids placed on it which will need to be assessed by both solicitors and possibly auctioneers before being accepted by either party involved in the transaction. If you are looking at buying a property through probate make sure you factor in any additional costs that may arise due to delays caused by legal proceedings during this process.
Tax Implications of Selling Through Probate
When someone dies their estate is liable for Inheritance Tax (IHT). The rate of IHT depends on how much money has been left behind but can reach up to 40%. However, if you are selling your house through probate you may be able to reduce this amount depending on certain circumstances such as whether it’s your main residence or not; if so then any profit made from selling could potentially be exempt from IHT altogether. Speak with your solicitor or tax adviser for further advice on this matter as every case is different.
Probate can add another layer of complexity when it comes to selling a house but understanding how it works is essential if you want your sale to go smoothly and quickly. Make sure you are aware of all relevant documents needed for sale completion before listing your home on the market and factor in any additional costs associated with delays caused by legal proceedings during this process. When possible take advantage of tax reliefs available such as those applicable when selling your primary residence through probate too as this could help reduce potential Inheritance Tax liabilities significantly. With some planning and knowledge of what is required, anyone who finds themselves in this situation should have no problem getting their house sold successfully despite going through probate first!