How to Sell Inherited Land in Arkansas

The holidays bring families together, and for a lot of families in Arkansas and Oklahoma, that’s when the conversation finally happens: what do we do with Mom and Dad’s place? A huge amount of farmland and family property is changing hands right now as an older generation passes it down.

If you have inherited land or a family home, here’s a simple step-by-step guide to selling it the right way.

Before anyone can sell, you need to know who owns the property now and who has the authority to sign.

• If there was a will, the estate usually goes through probate, and the court-appointed executor may need court approval to sell real estate.
• If the property was in a trust, the trustee can often sell it without probate.
• If there was no will, Arkansas law decides who the heirs are, and every heir may have to sign.
• If title never changed hands after an earlier death, the property may be “heirs property” owned by many relatives. This is common with old family land, and it needs to be cleaned up before a sale.

A local probate attorney or title company can tell you exactly what is needed. It’s worth doing this first, because it controls everything else.

When several heirs own property together, everyone needs to agree. The most common choices are:

• Sell the whole property and split the proceeds
• One heir buys out the others
• Divide the land, if it can be split cleanly
• Keep it for now, with a written agreement on who pays taxes, insurance and upkeep

A clear, honest number for what the property is worth makes this conversation much easier. Disagreements that go to court can be expensive for everyone.

Knowing the value helps the family decide, and it matters for taxes. The value on the date of death is often important, so ask your CPA whether you need a formal appraisal.

For a market view of what the property would sell for today, we offer a FREE property evaluation. We look at recent sales in your county, walk the property, and give you an honest range.

Taxes on inherited property often work differently than people expect.

• Stepped-up basis. In most cases, the tax basis of inherited property is its fair market value on the date of death, not what your parents paid. Selling soon after inheriting often means little or no capital gain.
• Property taxes keep coming. Someone needs to keep paying them while the estate is settled.
• Homestead credits may end. Credits and senior assessment freezes are tied to the owner who lived there, so check with your county assessor.

• Call the insurance company. Many policies have limits on vacant homes.
• Keep the utilities on in winter so pipes don’t freeze.
• Lock gates and check on the property regularly.
• Review any hunting, grazing or farm leases, and any timber contracts.
• Find out whether the mineral rights go with the land or were sold off in the past.

Clean out the house and outbuildings, gather the deed, any survey, tax records and lease papers, and decide on a price together. Then hire someone who knows how to market rural property, whether it’s hunting land, farm and ranch property, or a rural home.

Many families have heirs spread across the country. That’s fine. We can send video walkthroughs and photos, keep everyone updated, and many title companies can handle signing by mail so not everyone has to travel to closing.

Can I sell inherited land before probate is finished? Sometimes, with court approval. It depends on the estate, so ask a probate attorney.

Do I pay capital gains tax on inherited land? Usually only on the gain since the date of death, because of stepped-up basis. Your CPA can confirm for your situation.

What if one heir doesn’t want to sell? Options include a buyout, dividing the land, or a written agreement to keep it. A fair, documented value helps everyone decide.

Do you help families in Oklahoma too? Yes. We serve western Arkansas and eastern Oklahoma. See the counties we serve.

This article is general information, not legal or tax advice. Every situation is different, so talk with your CPA or an attorney before you make decisions about your property.