Inheriting a house may sound like a lottery, but it’s a different and challenging process altogether. Inheriting a home in Alberta may invite a lot of legal procedures that you need to complete to get a hold of the property. Though there’s no inheritance tax Alberta, you still need to pay probates or estate taxes after the property owner’s death. Thankfully, Alberta’s estate tax or probate fees are capped at $525. That means if the deceased owned a property in Alberta worth more than $250,000, they had to pay $525 as an estate tax.
Apart from the taxes, many other challenges may make you think about whether keeping the inherited house is viable or not. To help you make the right decision, here are four innovative ways to deal with an inherited home.
You May Consider Living In The House
After receiving a house in inheritance, the foremost thing that comes to mind is to live in it. If you don’t own a home or spend hefty money on rent, it makes sense to move into the house and live in it. You will save a lot of money if you have decided to build your own home or buy a new one.
Many times inherited properties are in poor condition. That means you might have to spend some time and money on essential repairs like roofs, sewage, electricity circuits, etc. You can also do a paint job to give it a new look. Moving to a new house will save you a lot of money you spend on renting and maintaining an apartment. Remember to check how far your home is from your workplace.
You May Consider Renting It Out
If you already own a decent place, moving into the inherited house won’t make sense. It’s best to rent the place to tenants in such a scenario. It would create an additional stream of income for you. You can use that money to pay off your debts, pay bills, buy groceries, and make savings too.
Renting out the property can sometimes create challenges for homeowners. You may have to spend money on regular repairs and upkeep of the house. You’ll also have to deal with complicated taxes. It’s best to hire a property manager to manage the rented house, so you won’t have to maintain the property by yourself.
You May Consider Selling It
Though you don’t have to pay inheritance tax Alberta, you still have to pay other taxes related to properties like probates. If you don’t want to pay estate taxes for the rest of your life, it would be best to sell the house to the right buyer and use that money to pay off your debts or invest the money.
Selling inherited properties involves a lot of complex legal procedures and paperwork. As a layman, you may not understand the legal terms in the paperwork and the property’s actual value. It’s best to hire home buyers who specialize in buying inherited properties to take care of the procedures.
You May Consider Listing The House On Airbnb
Listing the inherited house on Airbnb can help you earn additional regular income. It’s better than renting out the home by yourself as you won’t have to deal with tenants. Homestay rental sites like Airbnb take care of renting the place to customers. The profits are way more than full-time tenants. You can use the profits to make continual improvements to the home as well, for example, you could find the best pool builders to add a custom-built pool, this is very attractive to people when they search for a property to stay in on Airbnb.
How you deal with an inherited house entirely depends on your lifestyle and financial condition. Make sure you take help from property planners to find the correct value of the home so that you can make different decisions.