Inherited homes in Maine, what to do with the real estate now that Mom and Dad, or whichever family member is gone?
When the time finally arrives and the loved one that owned and cared for the place won’t be using the property in Maine anymore.
Here is needed information on estate taxes in Maine as you delve into the homework stage of how to handle best the inheritance puzzle.
Lots to consider as you go through the important papers tucked away in the antique writing desk. To select an attorney, get everything in the probating of an estate underway. Effective January 1, 2016 there were changes in the Maine estate tax regulations. The rules to play by. The most significant change caused the Maine estate tax exemption increase to be equal to the Federal estate tax exemption.
The current Maine estate tax exemption of $2,000,000 means any Maine estate for a person who died in 2015 valued at less than $2,000,000 is exempt from Maine estate tax.
The Federal exemption level in 2015 was $5,430,000. The figure rises each year at the rate of inflation.
In 2016 both the Federal and Maine estate tax exemption increased to $5,450,000. Consult a qualified tax expert when running the numbers and to get the maximum due you in the inheritance of an estate. And for advice on how to estate plan the best route possible in your own personal always unique situation.
Also, what about that 2.5 % withholding tax on capital gains in Maine real estate sales?
Maine dot gov weighs in on the withholding tax
details for your property sales if you are not a resident of Maine. And the sale price is $50,000 or over on the transfer paperwork that accompanies the real estate title deed carried up the court house steps, trotted into the registry of deeds. For recording, put on record for the World to see in the switch to a new owner(s).
So back to the Maine real estate end of the inheritance. You have three choices of what happens to the inherited real property in Maine. If you and your family inherited a home in Maine, one or all of you can move into it yourself and keep it. Use it for vacations, taking turns like a time share when time for some rest and relaxtion is carved out of the daily grind.
You could drain the pipes for plumbing and heating if a baseboard system is in place at the vacation home in Maine. Or keep it heated over a Maine winter until everyone decides what is best as a group to do with the property you all own collectively. You just lost a loved one so easy does it in the snap decision making is always prudent right?
You could rent out the property to others until you retire and need it yourself later in life.
What if you were an only child, if there is no one else to divvy it up with because you are the only one in line for an inheritance? You can sell it and use the money all for yourself. Donate some to your favorite charity to benefit others.
Or split it up among any family members named in the will or that you decide should be cut in after expenses from the real estate sale, other assets turned into cash proceeds from the estate.
For all to use as their share for something else needed closer to where you call home now since you, others moved away from the childhood house with all the memories attached to the property.
When you poll the family members that inherited the property in Maine, your brother needs financial help with too many kids in college at the same time.
Your sister wants to travel. Your own home sweet home out of state is begging for a new roof or heating system. Some family member just got a pink slip and their employee closed his doors. Went out of business. Or paying off an existing mortgage to live debt free is the plan for all that stand to inherit a chunk of change when the assets of an estate are liquidated, the funds dispersed.
When there are a bunch of family members involved in an estate, the choices of what to do with the inherited real estate or any asset suddenly becomes more limited.
Keeping everyone happy as the personal representative of an estate is not always an easy task. Even if the deceased property owner spells out in a will or trust what they want done with their real and personal possessions after they die. Time tables of folks vary from needing their share yesterday to take your time and no rush in the big check being cut by a law firm in the sale of the assets.
Maybe you inherited just a property that turns out to be a piece of land in Maine that Dad, Uncle Charlie that had no kids of his own loved to visit. On trips up to Maine. Or wanted to visit on vacations. Hunting, fishing, spending time in the great Maine woods was the plan. Maybe they never built on the land and life slipped by or there was a humble camp or cabin for vacation use.
Maybe what you inherited if you were really lucky was a lake house in Maine.
Something bordering the ocean, river, pond. A condo on a ski slope. Log cabin with a jaw dropping view or sunk down in disrepair in a swamp or bog. But regardless of what you inherited, now what do you want to do with whatever you are the proud owner of in Maine if it is a property with real estate attached?
Usually the first concern newly inherited property in Maine real estate owners wonder about is do I owe any taxes in the estate?
Then worry and concern begins about if that approaching third year’s worth of delinquent property taxes are not settled up in time, the town or city is going yank it away.
To own the property for lack of property tax payment and planning to put the place up for municipal auction.
Because the lien matures against the place from the folks generating the annual or semi annual real estate tax bill. That is created, stamped, mailed out to the last known address of whoever owned the property as of April 1st. It is your duty as the property owner to find the town office for the tax bill and not the other way around.
The property taxes keep right on accruing with or without payments. What is that expression about the only certainities in life… death and taxes?
The real estate taxes based on the property’s assessed value and needed by the town, city, plantation or unorganized township where it is located to keep things rolling on the local level.