Chayet & Danzo, LLC Chayet & Danzo, LLC www.Coloradoelderlaw.com
Call for a Free Initial Consultation
Direct303-872-5980
Toll-Free 1-888-472-1088
Email Us
Compassion, talent and dedication: guiding colorado families and Their Trusted Advisors During Times of Need

Decisions regarding inherited property

Colorado has made the top 10 list for growth over the last couple years and its population now tops 5.5 million. Modest homes in Cherry Creek and other desirable Denver neighborhoods have appreciated greatly as more people continue to move into the area.

If your parents lived in one of these neighborhoods for years and recently passed away leaving you their home, what are your options? Will you owe capital gains on a sale of the property? How do you coordinate with siblings if the property was gifted in equal shares? We’ll answer these questions in this post.

Stepped-up basis

You inherit the property with what is called a stepped-up basis (the fair market value of the property at the time of your parent’s death). If this was the home where you grew up the difference in basis could make a big difference in how much you owe in capital gains on a sale.

If the home has become dated, you may sell for a lower price. Depending on how close you live, investing in a kitchen remodel or broader renovation may help sell the home faster. Keep evidence to support the amount spent on these types of improvements, because they can be added to the home’s basis.

Selling a property

Whether or not your parent had a will, the first step probably involves probate. You would need to seek appointment through Letters Testamentary/Of Administration as a personal representative. For a property held in trust, court involvement may not be necessary.

If the property was gifted in equal shares, you will have to work together with siblings. Some of the things to consider and agree on include:

  • A minimal acceptable sale price,
  • How property taxes will be paid
  • Who will handle upkeep pending a sale

After a parent passes away, speak with an experienced probate attorney to get answers that relate directly to your unique situation. In our next post, we will talk about some options when you want to keep the property in the family.

No Comments

Leave a comment
Comment Information

Watch Our Firm Video

We are the premier Elder Law firm in the Colorado region. We set ourselves apart from other law firms in the area with our talent, dedication, compassion and ability of our attorneys to handle any case in Elder Law. We serve Colorado families with experience and dignity in your time of need.

View More Videos

Denver Office
650 S.Cherry St., Suite 710
Denver, CO 80246

Phone: 303-872-5980
Fax: 303-355-8501
Denver Law Office Map

Edwards Office
105 Edwards Village Blvd.
#D-201
Edwards, CO 81632

Toll Free: 888-472-1088
Fax: 303-355-8501
Edwards Law Office Map

Aspen Office
600 East Hopkins Avenue
Suite 301
Aspen, CO 81611

Toll Free: 888-472-1088
Fax: 303-355-8501
Aspen Law Office Map

  • Rated by Super Lawyers Macro Chayet SuperLawyers.com
  • Rated by Super Lawyers Frank J. Danzo, III  SuperLawyers.com
  • Member National Academy of Elder Law Attorneys, Inc. TM
  • Avvo Rating 10.0 Superb Top Attorney Elder Law
  • 2015 Five Star Professional Wealth Manager Multi-Year Winner
  • Our new 2015 Medicaid Book: how to protect your Family's Assets from devastating nursing home costs
  • Proud Sponsor 2015-Denver Colorado Senior Law Day
  • Peer Review Rated For Ethical standards & Legal Ability TM Martindale Hubbell
  • Haystack