I Inherited Real Estate - Where's My Deed?
I often have clients ask about "getting a deed" when they inherit real property. My response is usually "you don't need one." In North Carolina, in most cases, no deed is necessary to transfer and evidence ownership of inherited real estate.
North Carolina law provides that "[t]he title to real property of a decedent is vested in his heirs as of the time of his death; but the title to real property of a decedent devised under a valid probated will becomes vested in the devisees and shall relate back to the decedent's death, subject to the provisions of G.S. 31-39." North Carolina General Statutes Section 28A-15-2(b).
What this means is that (1) if someone dies without a will, his or her next of kin (as determined under NC law) immediately own the property; and (2) if someone does will a valid will, the beneficiaries of the property under the will immediately own the property. In both cases, the administrator or executor of the estate can sell the property only if necessary to pay debts and expenses. An exception is if the property is devised to the executor of the will with instructions to sell the property.
Other than a sale necessary to pay debts and expenses, once the real property is vested in the heirs or beneficiaries, it can only be sold if all of the new owners and their spouses agree. If the parties cannot agree on the sale, or if one of the owners or spouses is unavailable, a court proceeding for partition or sale in lieu of partition must be filed. This is a long and expensive process. If a minor child becomes the owner of real property, it also cannot be sold without a court order.
Since deeds are not necessary under North Carolina law, the evidence of ownership for inherited real property is (1) the death certificate and (2) the probate file (with the will, if any). If the real property is located in a county other than the county of the decedent's residence, these documents must also be filed in the county in which the real property is located.
Because of the complications involved under this system, often the best way to transfer real estate is with a living trust. A living trust generally gives the trustee the power to sell and avoids many of the problems inherent under NC law. This is particularly true for residents of other states who own property in North Carolina.
I inherited property in nc. The title has already been transferred to my name. I just received a bill for 186K to the estate of my uncle for medical bills related to injuries sustained by my uncle, the decedent. Can a lien be placed against MY property to satisfy this debt?
RESPONSE: I do not have enough information to answer your question. I suggest that you consult with an attorney to determine whether you have any personal liability.
My mother in North Carolina died in March 2009 leaving a will stating to sell and divide equally the house and property. There are 8 surviving children one of which was living with her and is now still living in the home. The probate has pretty muuch be completed with the exception selling the house. He will need to find another place to live. Well, four of my siblings do not want to sell (two are the administrators of the estate) and four of us would like to sell as the will stated. How can we force the sale of the house and property. Thank you for your assistance.
RESPONSE: At least one of either you or your siblings must file an action of Sale in Lieu of Partition in the county in which the real estate is located. This is a complex proceeding, and I recommend that an attorney be hired to assist you.
Does a child's spouse have any rights to items/property/money inherited from their parents? Parents and child live in North Carolina.
RESPONSE: Your question is not very clear, but if you are asking if a parent can intentionally disinherit a child, the answer is yes.
I have almost the same issue as Elizabeth. My father passed and left me the house which has been in my name for 3 years now. This week when I went to get a HELC the bank said there's a lien from the hospital where he died. I already advertised his passing in the paper and asked for any outstanding debtors to come forward. The hospital did now. So am I responsible for it even though the titled was transferred free and clear into my name 3 years ago?
RESPONSE: I would need more information before I can answer the question. I recommend that you consult with a probate attorney.
My siblings and I have similar situtation, but with a twist!
Our dad passed and we inherited house, which we understand is real property and not part of the estate. House was sold in Jan 2010, but now we find out that closing atty apparently sold the house under estate ID and proceeds were incorrectly deposited in estate acct for distribution to us.
NC probate clerk says they will allow money to stay in the estate or we can opt to have the estate 1099 voided and 1099's issued to each of the heirs.
Have you ever come across a situation such as this, and is it an easy matter to correct? Thanks
RESPONSE: The closing attorney would have to issue corrected 1099's. If he or she will do so, that's probably the best way to handle it. Then each heir will have to show their share of the sale on their tax returns.
My grandmother left me her condo in her will. Am I now responsible for the mortage payments and property tax? What do I do if I don't want it?
RESPONSE: You do not need to pay anything with regard to the property unless you want to keep it. If you don't want it you should inform the executor of the estate.
My mother passed away 6 months ago. She was single, had no will, no savings or investments, and no debt other than her mortgage. I believe the house and mortgage are automatically transferred to my sibling and I. We are keeping the house and renting it out.
Do we need to be prepared for a large tax bill? Will we have to pay Capitol Gains tax or estate tax on the house?
RESPONSE: I can only generally answer your question without knowing where your mother lived and the value of her house. However, if the house is not sold and is valued at under $1 million there should be no tax.
My grandmother left 2 of my cousins and myself her home and from what I understand we were the new owners as of the date that she passed. One of the heirs is 16. There are no bills to pay except the attorney whom the executor still has helping her. But when I spoke to the Clerk of Court it sounded like we should be the ones caring for the property and paying the insurance and power bill. But the executor is still paying these things out of the estate. Also the executor had locked up the house about a week after grandmother passed and on June 2nd the 3 sisters are to go in and remove the contents. The executor states she will sell the property cause she can. But that is not what the clerk of court says. Also if we want to buy out the other two heirs do we have to wait till the minor turns 18? Can the executor sell the home, if the will states that it is not to be sold and there is no debt? Will we be able to obtain keys after June 2nd?
RESPONSE: Without an express direction in the will, an executor generally does not have authority to sell real property. I urge you to consult with an attorney, who can review the situation and advise you about the best way to proceed.
Me and my sister inherited my dads house. I read your comment that we don't need a deed in our name,but i have nothin to show the house is in our name. Iam liveing in house so when its time for me to show proof i have nothin. Also i have been paying the property taxs from 2009 but my dad name is still on it.What do we need to do?
RESPONSE: The probate records contain the evidence that you own the house. You should take a copy of the records to the tax office to get them to change the name on the bill.
I am very confused about how real estate is to be handled in estate of my mom. She left a Will with a Residual clause, but real estate was not mentioned. Is her home a part of the estate (to be divided as per Residual clause) or does it pass to her heirs directly as it was not "willed to the estate?" Thank you.
David
RESPONSE: It is to be divided per the residuary clause, but in NC no deed is required to do that.
My father left me a farm when he passed. Even though you have said we don't need a deed, I would like to have one prepared to show ownership. Will you tell me the type of deed I need to have the attorney prepare. I have been told it is not a quick claim deed.
RESPONSE: It would be an executor's or administrator's deed.
I have a piece of property I inherited by will. I know in NC it is now my property but I want to record my interest. I am trying to figure out what type of deed to draw up. Most of the deeds have a space for consideration (I'm wondering if I can just delete that section or leave it blank since it was inherited)? Also, they have sections for witnesses? Do I need to get the executor to sign the deed since the grantor is dead? and does the executor's signature need to be witnessed? I just want to protect my interest by having my interest in the property recorded. Please Advise.
RESPONSE: You do not need a deed, but if you want one the executor will need to sign an executor's deed. This should be prepared by an attorney.
I inherited real property through a living trust. The will is in probate. Will I need a deed for the property since it was transferred through the living trust?
RESPONSE: Yes.
My 5 siblings and I inherited my mother's house 3 years ago. I would like to give my share to the others. How do I go about this?
RESPONSE: You will need an attorney to prepare a deed, and you may be required to file a federal gift tax return. I recommend that you consult with an estate attorney.
My grandmother owned a piece of land in North Carolina. She died with no will and has 1 daughter, my mother. Based on your posting, my mother has inherited the land but does not need a deed to evidence her ownership. She has said she doesn't want the land. She also has alzheimers. Can her children sale the land on her behalf? If so, what would we need to do so?
RESPONSE: If your mother does not have sufficient mental capacity to understand and agree to sign a power of attorney naming one or more children as agents (to sell the land), she will have to be declared incompetent by the court and have a guardian appointed. The guardian must then seek permission from the court to sell the land.
My dad and my brothers and I live in the state of FL. My mom has been dead for years. Now my Dad just passed. He owns property in North Carolina. How do we go about getting our names on the Deed of property? Do we need a lawyer?
RESPONSE: In North Carolina, a new deed is generally not needed when someone dies. You should consult with a North Carolina estate attorney about the best way to proceed.
My mom passed away in 2012 and I'm the executor. Her house has a tax value of $1.2 million but I think the market value is less. I don't have to worry about any NC or federal estate taxes because there's a $5 million exemption right?
RESPONSE: Assuming her total assets do not exceed $5.12 million, yes.