Real estate is one of the most common reasons probate takes longer and costs more than families expect. Here is what heirs need to know.
When an estate includes real property — a family home, rental property, vacation home, or land — the probate process becomes significantly more complex and time-consuming compared to estates with only liquid assets like bank accounts and investments.
Real estate cannot simply be divided and distributed like cash. It must be identified, appraised, maintained, potentially sold, and the proceeds distributed — all under court supervision and subject to specific legal requirements that vary by state. For heirs counting on their inheritance, this often means a much longer wait than anticipated.
Title verification. Before anything else, the executor must confirm how the property is titled. This determines whether the property is actually part of the probate estate. Property held in joint tenancy with right of survivorship, for example, generally passes directly to the surviving owner outside of probate. Property held in a living trust also typically bypasses probate. Only property titled solely in the deceased person's name — or as tenants in common — usually needs to go through the probate process.
Appraisal. The property must be professionally appraised to establish its fair market value. In many states, including California, a court-appointed probate referee handles this appraisal. The appraised value affects statutory fees (in states that calculate fees on gross estate value), potential estate taxes, and the eventual distribution to heirs.
Maintenance and carrying costs. While the property is in probate, someone needs to maintain it — paying the mortgage, property taxes, insurance, HOA fees, utilities, and handling repairs. These ongoing costs come out of the estate and reduce the amount ultimately available to heirs. If the estate lacks liquid assets to cover these expenses, the situation becomes especially challenging.
The decision: keep, sell, or transfer. Depending on the will and the beneficiaries' wishes, the property may be transferred directly to an heir, sold with proceeds distributed among beneficiaries, or kept in a trust. Each path has different requirements, timelines, and tax implications.
Selling real estate during probate is common — particularly when multiple heirs need to split the inheritance, when the estate needs cash to pay debts or taxes, or when no beneficiary wants to keep the property. However, a probate sale is not the same as a regular real estate transaction.
Court approval is often required. In many states, the executor must petition the court for permission to sell estate property. This means additional filings, hearing dates, and waiting periods. Some states require the court to approve the sale price, and some allow interested parties to overbid at a court confirmation hearing.
Timeline impact. Listing the property, finding a buyer, going through escrow, and obtaining court confirmation can easily add 3 to 6 months or more to the overall probate timeline. If the real estate market is slow, the property needs repairs before listing, or the sale falls through, the delay grows further.
Costs. Real estate sales during probate incur the same costs as regular sales — agent commissions, closing costs, transfer taxes, and potential repair expenses — plus additional legal costs for the court approval process. These are all paid from the estate.
If the deceased owned real property in more than one state, the estate may need to go through probate in each state where property is located. The primary probate takes place in the state where the deceased lived. A separate "ancillary probate" proceeding is required in each additional state where real property is owned. This means additional attorney fees, court filings, and timelines running in parallel — and the estate cannot be fully closed until all proceedings are complete.
Real property is included in the gross value of the estate for both federal and state estate tax purposes (in states that impose an estate tax). For families whose primary wealth is in their home, the property value can push the estate above tax thresholds — triggering tax obligations that must be resolved before distribution. Additionally, in states like California where probate fees are based on gross estate value, a high-value property means significantly higher statutory fees even if the property has a large mortgage.
Use the calculator below to see how property value, mortgage balance, monthly carrying costs, and probate duration affect what heirs actually receive. Drag the timeline slider to see how costs mount over time.
See how property value, carrying costs, and time affect your inheritance.
If you are an heir to an estate that includes real property, the practical reality is that you will likely wait longer and receive less than you would from a purely liquid estate. The property needs to be valued, maintained, and either transferred or sold — all of which takes time and costs money.
If you need access to your inheritance while the property works its way through probate, an inheritance advance can provide funds in as little as 48 hours — regardless of how long the real estate process takes. The advance is repaid from your share of the estate when everything is finalized, and you have no personal risk if the property sells for less than expected.
Get a free quote or call (800) 617-7260 to discuss your situation.
Disclaimer: This page is for general informational purposes only and does not constitute legal, financial, or tax advice. Probate laws, timelines, and costs vary significantly by state and by individual circumstances. We strongly encourage you to consult with a qualified attorney or financial advisor for guidance specific to your situation. First Heritage Funding is not a law firm and does not provide legal services.
It varies significantly, but real estate typically adds 3 to 9 months or more to the overall probate timeline compared to estates with only liquid assets. If the property needs to be sold, the timeline depends on market conditions, the court approval process, and whether any complications arise during the sale. Estates with property in multiple states can take even longer due to ancillary probate requirements.
It depends on the circumstances and the will. If the will grants a specific beneficiary the right to reside in the property, they may be able to stay. In other cases, the executor has the authority and responsibility to manage the property in the best interest of all beneficiaries, which may or may not include allowing someone to live there. The property's carrying costs still need to be covered. This is a question for the estate attorney.
The mortgage does not disappear when someone dies. Payments must continue to be made from the estate during probate to avoid foreclosure. If the property is being transferred to an heir, that heir will typically need to refinance the mortgage in their own name or continue making payments. If the property is sold, the mortgage is paid off from the sale proceeds. Note that in states like California, probate fees are calculated on the gross property value, not the net equity.
Yes, this is sometimes possible. One heir may offer to buy the shares of other heirs, effectively keeping the property in the family. This typically requires agreement among all beneficiaries and may need court approval. The buyout price is usually based on the appraised fair market value. Financing the buyout can be challenging since the property title is not yet clear during probate.
Yes. We regularly work with estates that include real property. The advance is based on your expected share of the overall estate, not just the liquid assets. Whether the property is being sold, transferred, or is still being sorted out, we can evaluate your situation and provide a quote.
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