Your First 30 Days After Inheriting a Property
Before you make any decisions, do these things first.
Secure the Property Immediately
Change the locks. Notify the homeowner's insurance that the property is now under estate administration — most policies have a 30-60 day window before coverage lapses if the home is vacant. Photograph every room. If there is personal property inside, do not throw anything away until you understand its value.
Get the Death Certificate
You will need certified copies — typically 8-12. Every institution you deal with (title companies, banks, mortgage servicers, the probate court) requires an original or certified copy. Order them immediately from the county vital records office.
Locate the Will and Any Trusts
The will determines who has authority to sell. A living trust may allow the trustee to sell immediately without probate. If there is no will, the property passes via intestate succession — state law determines who inherits what share.
Check the Mortgage and Tax Status
Call the mortgage servicer and inform them of the death. Federal law (the Garn-St. Germain Act) protects heirs — servicers cannot call the loan due-on-sale immediately after inheritance. Check that property taxes are current. A tax lien can complicate or delay any sale.
Probate: What It Is, How Long It Takes, and How to Avoid It
Probate is the court-supervised process of validating a will and authorizing the estate's representative to sell assets. It is not always required — but when it is, timelines vary dramatically by state.
Independent vs. Supervised Probate
Independent administration (Texas, Illinois, California, most common): The executor or administrator has authority to sell the property without court approval for each step. Timeline: 2-6 months typical.
Supervised probate (Florida, Louisiana, and many others): Every major transaction requires a separate court order. Timeline: 6-18 months. In Florida, this is the default — you must petition for independent authority or accept court oversight on every sale.
States with Fastest Probate
- Texas — Independent administration, 2-4 months typical
- California — IAEA authority available, 4-8 months with IAEA
- Colorado — Informal probate available, 2-4 months
- Nevada — Set aside procedure for small estates
- Wisconsin — Summary procedure for qualifying estates
States with Slowest Probate
- Florida — Supervised default, 9-18 months common
- New York — Court congestion, 12-24 months in NYC
- Illinois — Cook County congestion, 6-12 months
- New Jersey — Complex requirements, 9-15 months
- Louisiana — Civil law system, 6-18 months
How to Avoid Probate Entirely
If the decedent had a revocable living trust, the trustee can sell immediately — no court, no waiting. A transfer-on-death deed (available in 27 states) passes real property directly to the named beneficiary. Joint tenancy with right of survivorship also avoids probate for the surviving owner. If your property is stuck in probate, we work with your probate attorney to structure the sale around the court timeline.
The Stepped-Up Basis: The Most Valuable Tax Benefit Most Heirs Never Use
This is the most important financial concept in this entire guide. Read it twice.
What Stepped-Up Basis Means
When you inherit property, your tax basis — the number used to calculate capital gains — is reset to the fair market value on the date of death. Not the original purchase price. The date of death value.
Example: Your parent bought a home in 1985 for $80,000. It is worth $450,000 when they die. You inherit it. Your basis is $450,000 — not $80,000. If you sell it immediately for $450,000, you owe zero capital gains tax. The $370,000 in appreciation is never taxed.
What This Means for Your Sale
- Sell quickly after inheriting and the tax bill is minimal or zero
- Every month you wait, the property may appreciate above your new basis — creating taxable gain
- AS-IS cash sale shortly after death often equals zero capital gains
- Get a formal appraisal dated near the date of death — this establishes your basis
Always Talk to a CPA First
Stepped-up basis rules are complex — community property states (CA, TX, WA, AZ, NV, etc.) have different rules. Inherited IRAs have no stepped-up basis. Estate tax may apply for larger estates. We give you the concept; a CPA gives you the numbers. Never sell an inherited property without a 30-minute CPA conversation first.
Three Ways to Sell an Inherited Property — With Real Numbers
You have three options. Here is what each one actually nets, what each one demands from you, and which one fits which situation.
Multiple Heirs, One Property: How to Navigate Without a Lawsuit
This is where most inherited property sales go wrong. One heir wants to sell immediately. Another wants to keep it. A third wants to move in. Here is the legal framework and the practical path forward.
The Partition Action: The Nuclear Option
If heirs cannot agree, any heir can petition the court for a partition action — a forced sale. The court appoints a referee, the property is sold at auction (often below market value), and the proceeds are split after substantial legal fees. Nobody wins a partition action. If you feel this is where you are heading, call us first — there is almost always a better path.
One Heir Wants to Keep the Property
A co-heir who wants to keep the property can buy out the others at fair market value (established by appraisal). This requires financing or cash. We can facilitate this through our novation structure — stepping in as the transaction coordinator to ensure a clean transfer at a price all parties agree to.
The Clean Exit: Unanimous Agreement
When all heirs agree to sell, we can close cleanly. Each heir signs the seller documents separately — we coordinate multi-party closings across states and time zones. The executor does not need to be in the same room as the other heirs. Remote closings with mobile notaries are standard for us.
Selling an Inherited Property When You Live Out of State
The most common inherited property scenario: the decedent lived somewhere else and you cannot be there to manage the sale. Here is exactly how we handle it.
We Are Your Boots on the Ground
We have handled dozens of inherited property sales for out-of-state heirs. Our process: we visit the property, photograph everything, provide a detailed condition report, and give you an offer based on what we find — not what we hope to find. You never need to fly in. Closings can be handled with remote online notarization (RON) in most states, or we coordinate a mobile notary in your area.
The Documents You Need to Sign
As the executor or administrator, you need Letters Testamentary (or Letters of Administration) to sign any real estate contract. These come from the probate court. If you are a co-heir rather than the executor, the executor must sign. We work with your probate attorney or can recommend one if you do not have one.
