Dear reader, we at ZSM Woningontruiming understand that selling a parental home can be an emotional and complex challenge. Whether you're considering selling the house before your parents' death or soon after, this guide will help you through the process. We highlight the legal, financial and emotional aspects involved.
Why would you sell the parental home before you die?
Have you ever wondered why people sell their family home before their parents die? There are several reasons:
- Financial necessity: Sometimes parents need the money for care or other expenses.
- Health reasons: A smaller or adapted home may better suit your parents' needs.
- Downsizing: Your parents may want to move to a more manageable home.
- Preventing inheritance issues: Selling now can help you avoid hassles later.
Each of these reasons brings its own challenges. However, selling early can also have advantages.
“By selling the family home before death, families can often avoid complicated inheritance issues. Moreover, they respect the wishes of the parents better,” says Mr. J. van der Meer, an experienced notary whom we regularly consult.
Legal aspects: What do you need to know?
Who's in charge of lifetime sales?
Suppose your parents decide to sell their house while they are still alive. In that case, they are in control. After all, they still own the house. This often makes the process easier, but it also comes with responsibilities.
What about taxes?
If you sell a house before death, you will come into contact with various taxes. Here are the key points:
- Transfer tax: The buyer usually pays this when purchasing a home.
- Inheritance tax: Selling the house before death can reduce the overall value of the estate. This may mean that you, as an heir, pay less inheritance tax.
Take a look at this table. It shows how much inheritance tax you would have to pay, depending on the value of the inheritance:
| Value inheritance | Inheritance tax rate (partner/child) | Inheritance tax rate (grandchild) |
|---|---|---|
| € 0 – € 126.723 | 10% | 18% |
| > €126,723 | 20% | 36% |
Please note: these rates are for 2023 and may change each year. Therefore, always check the most recent information with the Tax Authorities.
Money counts: Financial considerations when selling
How do you determine the value of the parental home?
Determining the right price for the parental home is crucial. Here are some steps you can take:
- Have a professional appraise the house.
- Compare the price to recent sales in the area.
- Take into account any renovations or overdue maintenance.
Suppose your parents' house is located in a popular neighborhood where house prices have risen sharply in recent years. A house down the street recently sold for €350,000. However, your parents have just had a new kitchen installed. In that case, you might consider putting the house on the market for a little more, for example €365,000.
What if there is still a mortgage on the house?
Is there still a mortgage or other loan on the parental home? Then you must pay it off when you sell it. This affects how much money is left after the sale.
Let's take an example. Suppose the house is sold for €300,000 and there is still an outstanding mortgage of €100,000. After deducting the mortgage and sales costs (let's say €10,000), you are left with €190,000. Your parents can then spend or leave this amount at their own discretion.
Feelings also play a role: Emotional aspects of sales
Selling your parents' house can be an emotional rollercoaster. Here are some tips to deal with this:
- Capturing memories: Take photos of special places in your home or write down stories about events that happened there.
- Open communication: Talk honestly to each other about everyone's feelings. Maybe your sister finds it harder to let go than you do.
- Professional help: Consider seeing a grief therapist if the process becomes too difficult.
Getting started: Practical steps for selling
- Cleaning up and refurbishing: Tidy up the house and make minor repairs. A fresh lick of paint works wonders!
- Selling: yourself or through an estate agent?: Decide whether you want to sell yourself or prefer to hire a professional.
- Determine price tag: Use your valuation to determine a realistic asking price.
- Make promotion: Take beautiful photos, write a catchy description and consider a virtual tour.
- Receive viewers: Plan and organize viewings. Make sure the house looks its best!
- Negotiate: Prepare for offers and counter-proposals. Stay calm and businesslike.
- Complete: Sign the purchase contract and arrange the transfer at the notary.
Are there options other than sales?
Of course you can also use the parental home in other ways:
- Rent out: This generates income, but also means that you become a landlord with all the associated tasks.
- Donate to the children: Your parents can donate the house to you and your brothers or sisters, possibly while retaining your right of residence.
- Sale with right of redemption: This gives your parents the option to buy the house back later if they change their minds.
Who inherits what? About heirs and their rights
If your parents die, it is important to know who the heirs are and what their rights are.
Who are the heirs?
In the Netherlands, people inherit in this order:
- Spouse/registered partner and children
- Parents, brothers and sisters
- Grandparents
- Great grandparents
What rights do heirs have?
As an heir you have various rights:
- You can accept or refuse the inheritance.
- You are entitled to information about the estate.
- You can accept the inheritance beneficially.
Tip from ASAP House clearance: Not sure about your deceased parent's financial situation? Then consider the inheritance beneficially accepted. This way you protect yourself against any debts in the estate.
What to do with the contents?
Why should you have your home contents appraised?
The valuation of the contents is important for several reasons:
- You will then know exactly what the inheritance is worth.
- It helps with a fair distribution among heirs.
- It's useful for insurance.
How do you approach the eviction?
After the sale or death of your parents, the house often has to be cleared. You have several options:
- Get started yourself: Spend a weekend with family and friends.
- Professional help: Hire a company such as ZSM Woningontruiming.
- Combination: Remove the important items yourself and leave the rest to the professionals.
Selling during mourning: An extra challenge
Selling a house after the death of a parent is extra difficult because of the grieving process. Here are some tips:
- take your time: Don't rush decisions. Rome wasn't built in a day either.
- Ask for help: Engage family, friends or professionals. You don't have to do it alone.
- Be open: Tell potential buyers about your situation. Most people will be understanding.
What are the pros and cons of selling before death?
Advantages:
- Your parents decide on the sale themselves.
- You may pay less inheritance tax.
- You prevent possible conflicts between heirs.
Cons:
- It can be emotionally difficult for your parents and you.
- You may lose a place full of family memories.
- The financial side can be complicated.
How does the sale affect the children's inheritance?
If you sell the parental home before death, the inheritance changes in several ways:
- The value of the estate changes.
- The composition of the inheritance changes (from a house to money in the bank).
- You may pay less inheritance tax because the assets are spread out.
Can my parents continue to live in the house after the sale?
That depends on the agreements you make during the sale. Some options are:
- Your parents rent the house from the new owner.
- You sell with the right of occupancy for a certain period of time.
- You sell with a buyback option.
Finally
Selling a parental home before death is not an easy task. It requires careful planning and consideration of all aspects – legal, financial and emotional.
Remember: there is no one-size-fits-all solution. Every family is different and requires a tailor-made approach. Don't hesitate to reach out for help. A notary, financial advisor or broker can guide you through this process.
By talking openly with each other, planning well and taking everyone's feelings into account, you make the sale of the parental home as smooth as possible. Whether this happens before or after the death of your parents.
Do you have any questions about clearing a home after sale or death? Please feel free to contact our team at ZSM Woningontruiming. We are ready to help you get through this difficult time as best as possible.
