March 6th, 2023 | Selling
Selling an Inherited Toronto Property
In Toronto, selling an inherited piece of real estate entails a complicated and often nuanced process. Along with various considerations of a traditional listing, additional factors including probate, the type of property inherited, and timeline will directly impact the final returns of your sale.
While this may sound overwhelming on the surface, beneficiaries who are sufficiently prepared and thoughtful in the professional support they seek will be well-equipped for success.
Property inheritance is a both vast and complex subject. This article is intended to be a high-level introduction to the various implications it entails. For personalized and encompassing guidance, please reach out to our team directly.
The Specialized Nature of Inheritance
With a myriad of distinctive variables, selling an inherited property in Toronto is remarkably intricate. In addition to navigating the unique personal, logistic, and legal details involved in such a process, capturing an exceptional return on a high-value asset requires refined selling strategies.
Similar to a traditional home sale, your journey should commence with a reliable, top-performing real estate agent. Further, partnering with an agent that boasts specific experience with transactions of this nature can elevate your chances of a seamless, first-result sale.
Beyond compassionate empathetic guidance, an experienced real estate agent will also hold critical industry connections to assist you throughout the process, including specialized lawyers, first-class tradespeople, stagers, and other professionals.
Seeking additional insights about selling luxury real estate in Toronto? Consider these posts from our blog.
- Capturing the Eye of Luxury Buyers
- Sotheby’s International Realty 2023 Luxury Outlook Report
- Contingencies in Luxury Real Estate
Remote Selling Services
If you have inherited a Toronto property but do not live nearby, you may find it advantageous to work with an agent who additionally provides a full-service, remote selling experience. A home is a substantial asset, therefore it is critical to partner with an agent who can express complete and unwavering commitment to your success. This includes reliable, transparent communication in conjunction with innovative technologies that ensure you feel present, informed, and in control of your sale.
Probate in Ontario
In the instance of property inheritance following the passing of a family member, you or another party may be required to follow the process of probate. When an individual passes away, their collective assets and belongings are formally referred to as the estate. Items in the estate may be small, sentimental keepsakes or larger, high-value assets such as fine art, vehicles, or real estate.
Under Ontario law, the management of an estate, including the distribution of belongings may only be controlled by one person. Known as the estate trustee or executor, this individual will have the sole legal right to act on behalf of the person who has passed.
Probate refers to the legal process of inducting an individual to the title of estate trustee. Should the deceased have no executor determined in their Will in place at the time of passing, a family member such as a child or sibling may formally pursue probate to become the trustee. In the instance that the deceased’s Will does directly identify a preferred executor, the probate process must be followed before legal control of the estate is granted.
If you have inherited property in Toronto through a Will or informal verbal agreement, proceeding with the sale will be dependent on the completion of this process.
You can discover more insights about family and real estate on our blog. Start here.
Taxation & Capital Gains
Like the sale of any high-value asset, capital gains tax will directly impact the received returns from the disposition of inherited real estate. However, the tax amount and process will vary based on the use of the property, as when it is sold.
In the instance that a beneficiary inherits a property that was used as a primary residence, capital gains tax will not apply until the home is sold. The seller is then required to report 50% of the general capital gains on their next income tax statement.
For dedicated vacation or investment properties, full capital gains taxation occurs at the time of inheritance. If the beneficiary is unable to make this payment upfront, the value can be deducted from the estate of the deceased.
Seeking a seamless and personalized property sale? As distinguished leaders in luxury Toronto real estate, Armin Group can help. Send us an email, or call our team at 416.347.4061 to begin your journey.
