Tips for Siblings Inheriting Property from Their Parents in Georgia

Losing your parents obviously creates a turbulent period in your life, and it can be made even more chaotic if you find yourself and your siblings inheriting property. In theory, inheritance is a good thing, but it can create a sudden whirlwind of legal details and paperwork for you to deal with during an already difficult time. When you suddenly find yourself sharing the responsibility of your parents’ assets, it can be a daunting financial and emotional burden while you decide if you want to keep or sell your inherited property. To help smooth over your experience, here is a quick but thorough guide for siblings inheriting property in Georgia.

Georgia’s Heir Property Process

An heir property process determines how a deceased person’s assets are distributed. In Georgia, this begins with probate, which can be a months-long process that determines who will take legal ownership of any assets. This process also uses the assets themselves to pay off any taxes or debts before distributing to the beneficiaries. If the deceased left a will, the executor will likely be appointed as personal representative of the estate during probate proceedings. If there is no will, the probate court will appoint an administrator to act as the personal representative. The responsibilities of this role include:

• Collecting and inventorying all assets belonging to the deceased
• Having any necessary assets appraised (this is mostly applicable to real estate properties)
• Selling assets, if necessary, and using the proceeds to pay off valid debts or taxes
• Transferring responsibility of utility services or home insurance to the correct beneficiaries
• Divide the remaining property between the heirs as determined by the will, or as determined by state law if there is no will

However, you may be able to skip the probate process under the right circumstances. For example, if the deceased did not leave a will, the siblings inheriting property can agree on dividing the assets, and no creditors object, the probate process can be skipped.

Whether or not you skip probate, your next task is to handle asset distribution between all proven heirs.

How to Divide an Estate Between Siblings

There are a few different ways that an estate can be divided for siblings inheriting property in Georgia.

1. The first way is determined during the probate process according to the will of the deceased. In this case, each sibling’s share was previously determined by their parent. This division can be basic, such as an even split of assets between the heirs, or it can be more complex, such as the deceased specifying that certain assets should go to specific heirs. There may be an even more chaotic situation in which the deceased left certain parties out of their will entirely, or severely reduced the shares of those parties due to personal issues.
2. The next kind of division is determined by the personal representative during the probate process if the deceased did not leave a will. In this case, division will be determined entirely by state law: if the deceased did not have a spouse, any children will inherit equal shares of the estate. If any of the children are deceased, then any children of that heir will inherit an even split of their share.
3. The final kind of division is determined without probate and without a will. In this case, all heirs should already be in mutual agreement about how to divide their inherited property.

If an heir contests their share of the inheritance based on any of the above processes, they can take legal action, though it is definitely preferable that the siblings are able to negotiate a form of asset division that works for everyone. The next steps of the process are much easier when everyone is on good terms.

What to do with the Property

After asset division is settled between siblings inheriting property, the heirs are left to deal with their inherited assets individually. However, matters become more complicated if the deceased left a house that is now co-owned by the heirs. In that case, there are several different options.

(Once you and your siblings have selected the option or options that work best for you, it’s a good idea to have the personal representative or a third-party legal professional put the division agreement in writing to be signed by all siblings. This document should also outline the responsibilities of each sibling in terms of how the divided assets will be handled according to the agreement.)

Retain joint ownership

The siblings can choose to keep the property under a co-ownership agreement that outlines each co-owner’s responsibilities and their shares in the property. Not all of the co-owners have to live in the property in order to co-own it, and they can even choose to rent the property out to a third party and split the proceeds. Regardless of their intentions with the property, it is important that all parties communicate and effectively manage their responsibilities, whether that includes general upkeep, property taxes, or mortgage payments.

Selling shares between siblings

If certain siblings want to sell the property while others do not, the siblings can buy and sell their shares between each other. For instance, if one sibling wants to sell and the other siblings do not, that individual can sell their shares of the inheritance to the other siblings. If one sibling wants to retain sole ownership, they can by the shares that belong to their siblings in order to own the whole of the property. This would equalize the division of assets to make sure that none of the siblings lose their monetary share of the inheritance.

After deciding on any selling, the siblings will need to file any necessary legal documentation to officially transfer the shares between parties.

Go to court for a partition sale

A less desirable option to consider if siblings can’t agree about whether or not to sell the inherited property is a partition sale. In this case, one of the co-owners can force a sale by filing a partition lawsuit, which allows them to ask a court to sell the property and divide the proceeds according to each co-owner’s share. This is called “partition by sale.”

Under the right circumstances, such as dividing land, the court could also order “partition in kind,” which splits the property into separate parts for each co-owner to handle individually.

In either case, this is usually not anyone’s first choice. If possible, the best option is for all siblings to reach a mutual agreement about how to handle their shared property.

Sell the property and split the proceeds

If all siblings inheriting property agree that they want to sell their assets, it should be easy to move forward with selling. However, there may still be roadblocks in offloading the property depending on the situation. Oftentimes, inherited homes are outdated or in need of repairs, making them harder to sell. Additionally, the process of finding a realtor, preparing the property, listing, and waiting for an offer can take a few months. This means a few more months of making any necessary mortgage or utility payments, paying for repairs, and keeping the property tidy. The co-owners of the property will want to split any of these additional costs and arrange who will take on what responsibilities before or during the selling process.

Sell to a local cash homebuyer

Siblings inheriting property may decide to sell, but they may also want to avoid the time-consuming process of listing their shared property. Luckily, there are other options. They can always sell to a local cash homebuyer. These businesses allow homeowners to sell their properties within as little as a week, without worrying about any of the repairs, showings, or commissions required by the traditional listing method. With this option, siblings can offload their property for cash and move on more efficiently.

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