Inherited a House? What to Know Before You Sell

Selling an Inherited Property Through Probate

Inheriting a house in Los Angeles County can mean a probate court filing, a property tax reassessment, and sometimes a disagreement among co-heirs, often while you are still grieving. Whether probate is required depends on how title was held and what the property is worth, and the tax questions that follow are different from a typical home sale. This page walks through what generally applies under California law before you sell. If you would rather skip repairs, showings, and a long closing, we buy houses in Los Angeles County in as-is condition, including homes still working through probate.

This overview of California probate and inherited-property law is general information, not legal advice, and it is not a substitute for guidance from a licensed California attorney about your specific situation.

Do You Need Probate to Sell an Inherited House?

Not always. A house held in a living trust, in joint tenancy, or passed by a valid transfer-on-death deed generally does not need probate at all. When it does need court involvement, California has simplified procedures for smaller estates. A successor can generally use a simple affidavit to collect personal property, not real estate, when the total estate is worth $208,850 or less (Probate Code section 13100). That threshold adjusts every three years under section 890, with the next adjustment scheduled for April 1, 2028, not 2026, despite some online estimates. For real property, an heir to a decedent's primary residence valued at $750,000 or less may generally petition the court for an order of succession without a full administration (Probate Code section 13151). That petition becomes available 40 days after death; the $750,000 threshold was set by Assembly Bill 2016, effective April 1, 2025. Above these thresholds, a full probate administration is generally required.

Selling Real Property Through the Probate Process

A full probate case is generally filed in the Los Angeles County Superior Court, since California venue rules point to the county where the decedent was domiciled at death (Probate Code section 7051). The court appoints a personal representative, and most are granted "full authority" under the Independent Administration of Estates Act. That authority generally lets them sell real property without a court confirmation hearing, as long as they mail heirs a Notice of Proposed Action at least 15 days before the sale (Probate Code section 10586). The sale can proceed as long as no one objects. A representative with only "limited authority" generally must bring the sale back to court for confirmation, where a judge can accept a higher bid. A sale to the representative or their own attorney always requires court supervision, regardless of authority level (Probate Code section 10501).

Multiple Heirs, Disagreement, and Buyouts

A house often passes to more than one heir at once, and those heirs can disagree about selling, renting, or having one sibling keep it. Once heirs hold title together as co-owners, any one of them may generally ask a court to order a partition of the property (Code of Civil Procedure section 872.210), though the exact procedural path can depend on whether the estate has already closed. While probate remains open, the personal representative, not the heirs, generally holds legal title, so a dispute at that stage is more likely raised within the probate case itself rather than through a separate partition lawsuit. For a single-family house, a court will usually order a sale rather than a physical division when dividing the property in kind would be impractical (Code of Civil Procedure section 872.820). A buyout, where one heir pays the others and keeps the house, or simply agreeing to sell and split the proceeds, is generally faster and less costly than a contested court case. An estate attorney can tell you which option fits your situation.

Prop 19 and Your Property Tax Reassessment

A change of ownership normally triggers a reassessment to current market value, which can significantly raise the property tax bill on a home a parent bought decades ago. Proposition 19, in effect since February 16, 2021, lets an eligible child keep a parent's lower taxable value on an inherited home in some cases (Revenue and Taxation Code section 63.2). That exception applies only if the home was the parent's principal residence, the child moves in within a year, and the child files for the homeowners' exemption that same year. If the home's fair market value exceeds the parent's prior taxable value by more than a set amount, the excess is added back to the new taxable value. The state adjusts that amount every two years — currently $1,044,586 for transfers between February 16, 2025 and February 15, 2027, per the State Board of Equalization. A home the heir does not move into generally does not qualify.

Capital Gains Tax and the Stepped-Up Basis

Separate from property tax, there is the federal question of what you owe if you later sell the house for a gain. This is federal, not California, law — treat it as background, not tax advice. Under Internal Revenue Code section 1014, the tax basis of inherited property generally resets to its fair market value on the date of the original owner's death. That is different from carrying over what the owner originally paid. In practice, this can significantly reduce or eliminate capital gains tax if the house sells reasonably close to that date-of-death value. Rules can differ for jointly owned, previously gifted, or trust-held property — confirm specifics with a CPA.

Liens, Reverse Mortgages, and Other Debts on an Inherited Home

An inherited house does not arrive free of the debts attached to it. An existing mortgage, a reverse mortgage, a judgment lien, unpaid property taxes, or an HOA lien can all follow the property into a sale. Those generally have to be resolved through escrow before title can transfer clean. A reverse mortgage (a HECM) becomes due once the last borrower has died. Under Consumer Financial Protection Bureau guidance, heirs generally have 30 days after a lender's due-and-payable notice to sell, refinance, or pay off the balance, sometimes extendable up to six months at the lender's discretion. If the house also has a foreclosure sale date already scheduled, see our page on how to stop foreclosure in Los Angeles County.

Selling an Inherited House As-Is vs. Fixing It Up First

Many inherited houses sit vacant for a while and need work, from deferred maintenance to a full clear-out, before they would show well to a typical buyer. Fixing up a house before selling can mean a higher price. But it also means fronting repair costs and carrying the property for months longer, which is not always realistic for heirs who live elsewhere or need to divide proceeds soon. Selling as-is to a cash buyer skips inspections, financing contingencies, and repairs entirely. Worth knowing either way: a sale made directly by an estate's representative during probate is generally exempt from California's standard Transfer Disclosure Statement requirement (Civil Code section 1102.2). Heirs who take title in their own names before selling may not have that exemption, though, so confirm with your title company. That holds whether you sell an inherited house in Pacific Palisades or anywhere else in the county — we buy inherited houses as-is throughout Los Angeles County.

Common Questions About Selling an Inherited House

These FAQs about California probate and inherited-property law are general information, not legal advice; consult a licensed California attorney about your specific circumstances.