**FAQs**

1. **What are some tax implications of inheriting real estate?**
– Tax implications depend on who inherits the property. Spouses inherit assets tax-free, while others may face capital gains tax.

2. **Can you avoid capital gains tax and probate by adding a child’s name to a property?**
– Adding a child’s name to a property will not avoid capital gains tax, and it may trigger a gift tax if deemed a gift of 50% of the property’s value.

3. **What happens if an inherited property has a mortgage?**
– Most mortgages can be assumed by a new owner, but the lender must approve the new borrower. If the borrower is unable to meet requirements, the property may need to be sold.

4. **Should you hold onto inherited real estate, or sell it?**
– It is advisable to assess the value of the asset and consider if you would buy it with an equivalent amount of cash. Sentimental properties may be worth holding onto, but selling can offer more diversification and potential tax benefits.

5. **What should you consider if inheriting real estate and already own property in the same city?**
– Inheriting additional property in the same city could lead to an overexposure to one real estate market. Selling the inherited property and diversifying investments may be a better option.

**Conclusion**

Inheriting real estate can come with various tax implications and considerations. It’s essential to assess the value of the property, evaluate the tax consequences, and determine if holding onto the asset aligns with your financial goals. Seeking professional advice on estate planning, tax implications, and financial decisions can help beneficiaries make informed choices regarding inherited real estate. Remember, making intentional decisions about inherited assets can lead to more diversified and potentially beneficial financial outcomes.