property, subtract the expenses and costs involved, and the commissions paid, and then divide the resulting amount among the heirs. If you sell the property as soon as you inherit it helps save on the capital gains tax. Capital gains tax for sale of the inherited property is calculated on the property value from the time of the death of the decedent until the time of the sale of the home. Whatever the increase in value is in that time period is what you pay capital gains taxes on. Since the difference may not be much if the time between death and sale is short, you may be left with nothing to pay in capital gains tax. (See Chapter 8 for a more in-depth discussion of taxes.)
NAVIGATING FAMILY ISSUES
Disputes among siblings or legal heirs over the settlement of inherited property are quite common. Often, disputes over a property can be influenced by past relational issues. In the absence of parental guidance, adult siblings are left to face the scenario of ambiguity or disagreements over their rightful role. It's a challenging time. It is essential that you work to ensure that disputes and disagreements do not lead to litigation. Litigation will only worsen the situation by causing issues with family members, and creating uncertainty and wasting time while waiting for legal issues to be settled, as well as the incredible expense and aggravation associated with legal hearings. The tremendous cost involved in litigation is certainly a wasteful expenditure when there are other solutions. Litigation is not the peacemaker’s choice—strive to prevent it whenever you possibly can. This situation can be avoided by keeping the emotional heat down and a compromising frame of mind in the forefront. There is generally a solution that can be found for a peaceful settlement.
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