Internal Revenue Code section 6324 provides that on the day someone dies a federal estate tax lien comes into existence. When a family member dies, there's certainly a lot to sort out. Then, that's often followed by the monumental task of dealing with the deceased's estate This requires you establish the fair market value of the house.Fortunately, the decedent's executor will have set a value on it as part of managing the estate. Whether the deceased is your dearly departed loved one, or youre simply a court-appointed personal representative, the weight of fulfilling someones final wishes during probate is a heavy load to carry.. Add in the complexity of selling a house during the process and honoring those last requests can feel impossible. The best way to negotiate without alienating each other is to treat the house as if it were a regular investment property. The surviving owner or owners continue to own the property after one owner dies, inheriting the deceased's share by operation of law. See how to sell a house after a relative dies. According to Randall Bell, a real estate broker who specializes in real estate damage valuation, a murder or suicide in a home can cause it to sell for 10% to 25% less. When an estate planning attorney sits down with a new client, they ask about the title and how a property will be handled if a sole or joint owner dies. By Jennie Lin, Attorney. If you are not selling the home and are simply looking to transfer the deed to the house to a new owner/heir, the home may be able to avoid the probate process. Use these tips on selling an estate sale to make your experience a smoother one. Youre likely receiving this property as a result of a loved ones death, and the financial decisions that come with inheriting property can be stressful and confusing. The lien attaches to all assets of the decedents gross estate that are typically reported on Form 706, United States Estate Tax Return. 1. Different states have different rules for when an estate must be probated. Why Buying Real Estate as Tenants in Common is Popular. The second factor to consider is that the deceaseds will or trust may direct transfer of real estate to a specific party through the estate distribution process or gives someone (usually a friend, relative or business associate) first right of refusal to purchase a property before it The process for transferring a deceased person's house or real estate to the new owner depends on many factors. There is the emotional loss. Ask her for the figures and use that as a starting point for negotiating with your siblings. If you are able to bypass probate, follow these steps. After the death of a parent, selling real estate can be a stressful event. Dealing with a family member's death can be a double cruelty. You'll find great advice from start to finish on dealing with the sale of a home. When youre in the business of buying real estate from highly motivated sellers, youre eventually going to encounter people who want to sell a property they dont own.. Ive talked to A LOT of motivated sellers about buying real estate that was owned by their deceased family member(s) perhaps a parent, grandparent, aunt, or uncle.. This estate tax lien does not have to be publically recorded in order to be valid. Plus, (not to go all CSI on you, but) blood, fluids, or other gross stuff can cause harmful health issues if not taken care of by a certified specialist. Inheriting a house while a generous gift from a loved one kicks off a process that can be fraught with emotion.