An inherited property sale can be an exciting venture, but it is also a process that comes with many responsibilities and challenges. Inheritors must ensure that they follow all legal procedures and understand the tax implications of their sale. In addition, they must be aware of Alaska real estate market trends and conditions. By following this comprehensive guide and seeking professional advice as needed, inheritors can successfully sell their inherited property.

Inheritance and the Law in Alaska

In the state of Alaska inherited property sale, spouses are entitled to a portion of their deceased partner’s intestate un-written property if they do not have living parents or descendants. They are also entitled to 3/4 of the intestate property that remains after children and grandchildren have received their share.

However, if the deceased did not write a will, the distribution of their property is determined by the law. In this case, heirs will inherit according to the state’s laws of intestacy. This includes a share for spouses and children, as well as any siblings that may be alive. Grandchildren will receive their share only if they survive at least 120 hours after the death of their parent.

To avoid the probate process, a person can set up a revocable living trust. This allows them to retain control over their property while they are alive, and then transfer it to their beneficiaries upon death. This method also avoids inheritance taxes. Inheritors can also use joint ownership with right of survivorship, which is a legal arrangement that allows multiple owners to own property together. Lastly, the executor of an estate can make a “small probate” or affidavit procedure. This allows heirs to skip probate if the value of the estate is $50,000 or less, after liens and encumbrances are subtracted.

Inheritors must be sure to address any outstanding mortgage on an inherited property before selling it. They should also consult with a mortgage lender and a tax professional to understand any possible implications. Depending on the state of Alaska, inherited properties may be subject to inheritance and capital gains taxes.

The market value of an inherited property is another important factor to consider when selling it. Inheritors must conduct a thorough market analysis to determine its fair market value, taking into account its location, size, condition, and recent sales of comparable properties in the area. They should also consider any outstanding debts and existing bills on the property.

If a married couple separates, their individual property is generally considered their own. However, the court can recapture assets if they were dissipated or wasted during their marriage. This is called the doctrine of active appreciation. For example, Harold’s sports shop interest can be considered marital property if it increased in value due to marital funds or efforts during the marriage. See Harrower v. Harrower, 71 P.3d 854 (Alaska 2002). However, the sports shop will not be able to maintain its character as separate property if it is sold after the parties’ separation.