Home Property & Heirs

Selling Inherited Property — What Heirs Need to Know

Selling a home you inherited involves probate, taxes, and family decisions. Here is a practical guide.

Before you can sell

Selling inherited property isn't as simple as listing it. Several legal and practical steps must happen first.

Step 1: Establish legal authority

If the property is in probate, the executor must be appointed and may need court approval. If in a trust, the successor trustee has authority. If jointly owned with right of survivorship, the surviving owner can sell immediately.

Step 2: Get an appraisal

An appraisal establishes the stepped-up basis for tax purposes and helps set a listing price. Get this as close to the date of death as possible.

Step 3: Prepare the property

Clear personal belongings, make repairs, and decide whether to sell "as-is" or invest in improvements.

Step 4: Navigate the sale

Some states require court confirmation of the sale price. Others allow the executor to sell at market value with independent administration. California is known for complex probate sale procedures including overbidding.

Tax implications

Thanks to the stepped-up basis, most heirs owe little capital gains tax when selling soon after inheritance. Document the date-of-death value with a professional appraisal.

Need funds before the sale closes?

Selling inherited property during probate can take months. An inheritance advance can provide cash while the sale process unfolds.

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.

Frequently Asked Questions

If the executor has authority, individual consent may not be required. If heirs own directly as co-owners, all must agree — or a partition action can force a sale.

If you sell soon after inheriting, likely very little. You only owe capital gains tax on appreciation above the stepped-up basis. Federal rates range from 0-20%.

A probate-experienced agent understands court approval processes and timeline constraints. Not required, but their experience can avoid costly mistakes.

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