Inherited Property on the Grand Strand: Keep It, Sell It, or Rent It?

Inheriting a home or other real estate on the Grand Strand can be a great opportunity to finally fulfill your dream of owning a beach home. However, suddenly owning a new home you weren’t prepared for is a complicated responsibility. Whether you inherited a Myrtle Beach vacation home, condo, or another property in Horry County, you may quickly ask yourself what to do with that inherited property. Should you sell it? Or is it worth it to keep?

Before making that decision, it is important to understand the legal, financial, and practical considerations surrounding inherited property in South Carolina.

Understanding the Estate and the Property

Before selling, renting, or transferring an inherited property, determine how the property is titled and whether the estate must go through probate. If the property is part of a probate process already, the personal representative has authority to manage estate property. But, South Carolina law places specific requirements on the sale of property owned by an estate. Depending on the will and circumstances, additional probate procedures or court authorization may be required as stated in South Carolina Code § 62-3-711.

Option 1: Keep the Property

Keeping inherited property may make sense if it has sentimental value. It could fit your long-term plans as a family, or even become a valuable vacation property. Grand Strand real estate can also provide an opportunity to retain an asset in the family for future generations.

However, ownership comes with ongoing expenses. Property taxes, insurance, HOA or condominium fees, maintenance, repairs, utilities, and potential storm-related costs should all be considered. If multiple heirs inherited the property, you should also establish how expenses, responsibilities, and future decisions will be handled.

Option 2: Sell the Inherited Property

Selling may be the simplest option if you do not live in South Carolina. It becomes complicated when you have to attend to a home that is a plane ride away. Some do not want the responsibility of maintaining the property, or prefer to divide the proceeds among beneficiaries.

There can also be important tax considerations. The IRS generally provides that the basis of inherited property is its fair market value at the date of the decedent’s death. That value can be important when determining gain or loss if the property is later sold.

Because tax treatment depends on the specific circumstances, beneficiaries should discuss potential tax consequences with a qualified tax professional.

Option 3: Rent the Property

A Grand Strand property may also have potential as a long-term or vacation rental. Rental income can create an ongoing source of passive revenue, but becoming a landlord introduces additional responsibilities. Please note that being a landlord makes you legally responsible for the care of the property. This includes leases, to cover the mortgage, maintenance, insurance, taxes, property management, and local requirements (if any).

For inherited vacation property, it is especially important to evaluate whether the expected rental income justifies the costs and responsibilities of continued ownership.

Get Help With Your Inherited Property from Grand Strand Law Group

No universal answer exists on whether you should keep, sell, or rent inherited property on the Grand Strand. The right choice depends on a multitude of factors as well as your personal wishes. Is the value worth it? What about your other family member’s wishes? The status of the estate, ongoing expenses, and your long-term financial and family goals all play some factor into what you should do.

Need legal help on your decision? If you have inherited real estate in Myrtle Beach, or elsewhere along the Grand Strand, Grand Strand Law Group can help you understand the legal considerations surrounding probate, estate administration, and real estate before you make your next move.

Give us a call at 843.492.5422. Learn about how we can help with your estate planning journey now or in the future.