Inheriting a house often comes at a hard time, and it brings a long list of decisions. Here’s a simple order of operations to follow. Laws vary by state, so talk to a probate or estate attorney about your specific situation.
1. Secure the property
Make sure the house is locked, the insurance is still active (tell the insurer the owner has passed away, since vacant homes may need different coverage), and the utilities needed to protect the house, like heat in winter, stay on. Collect mail and keep an eye on the property.
2. Find out how the house passes
How you inherit determines what you can do and when. The house may pass through a will and probate, through a living trust, by a transfer-on-death deed, or to a surviving joint owner. A probate or estate attorney can tell you which applies and who has authority to sell.
3. Understand probate, if it’s needed
If the house goes through probate, the court appoints an executor or administrator who manages the estate, including any sale. Some states offer simpler procedures for smaller estates. Probate can take months, but in many cases the house can be sold during the process with the right approvals.
4. Keep up with the bills
The mortgage, property taxes, insurance and utilities still come due. Falling behind can lead to penalties, a tax sale or foreclosure, so figure out who will pay them while the estate is settled.
5. Learn the tax basics
Inherited property often gets a “stepped-up” tax basis, meaning its value for capital gains purposes is generally reset to its value around the date of death. That can make a sale soon after inheriting less costly than people expect. Talk to a tax professional about your situation.
6. Decide: keep, rent or sell
- Keep it if you or a family member will live there and can afford the upkeep.
- Rent it if it’s in good shape and you want income, and you’re ready to be a landlord.
- Sell it if the heirs want to split the value, no one can maintain it, or it needs work no one wants to take on.
7. If you sell, decide how
If the house is updated and there’s no rush, listing with an agent may bring the best price. If it needs work, is full of belongings, or several heirs need a simple, certain outcome, a cash sale can be easier: no repairs, no cleanout, and one clear number to divide.
We buy inherited houses as-is, work alongside your probate attorney, and pay all closing costs. Learn more about selling an inherited house, or get a free cash offer.
