What to Do When You Inherit a Home in California: A Step-by-Step Guide
Inheriting a home can bring a mixture of emotions and responsibilities. Whether you've recently lost a parent, another family member, or someone close to you, you may suddenly find yourself responsible for a property and unsure what needs to happen next.
There may be paperwork to sort through, belongings to manage, bills to pay, and decisions about whether to keep or sell the home. If you're also serving as a trustee, executor, or administrator, those responsibilities can feel even greater.
The good news is that you don't have to make every decision immediately. Understanding a few important first steps can help you protect the property, avoid unnecessary expenses, and move forward with greater confidence.
1. Determine How the Property Is Owned
Before making decisions about an inherited home, it's important to understand how title to the property is held.
In California, a home might be owned individually, held in a living trust or another entity (a business or LLC, or owned jointly with another person. The way ownership is recorded can affect who has authority to manage the property and what legal steps are necessary to transfer or sell it.
For example:
Property held in a living trust: A successor trustee may have authority to manage or sell the property according to the trust's provisions.
Property owned individually: Probate or another legally available transfer procedure may be necessary.
Property held in joint tenancy: The surviving joint tenant generally receives the deceased owner's interest through the right of survivorship.
A good starting point is locating the most recent recorded deed, along with any trust documents or will.
If you're uncertain about ownership or who has legal authority, an estate planning or probate attorney can help clarify the next steps.
2. Secure and Protect the Home
If the inherited property is vacant, protecting it should be one of your first priorities.
An unoccupied home can develop problems surprisingly quickly. A small plumbing leak, an unnoticed roof issue, or a lapse in insurance coverage could turn into a costly expense.
Consider these initial steps:
Check that exterior doors and windows are secure.
Review the homeowner's insurance policy and notify the insurer about the change in occupancy.
Keep necessary utilities operating while the property is being evaluated.
Check for water leaks, roof damage, and other maintenance concerns.
Arrange for regular property inspections if nobody is living there.
Make sure landscaping, mail, and general upkeep are being addressed.
Don't assume the existing insurance policy provides the same coverage once the home becomes vacant. Contact the insurance company to understand any restrictions or additional coverage requirements.
If you live outside the Sacramento area, having someone local who can periodically check on the property can be especially valuable.
3. Understand Whether Probate Is Necessary
One of the most common questions I hear is whether an inherited home must go through probate before it can be sold.
The answer depends on how the property was owned and the circumstances of the estate.
Probate is the court-supervised legal process used to administer certain estates after someone passes away. It may involve appointing a personal representative, identifying assets, addressing debts, and distributing property to the appropriate beneficiaries.
However, not every inherited home requires a formal probate proceeding.
For example, a properly funded living trust may allow the successor trustee to administer the property without formal probate. Other ownership arrangements or qualifying transfer procedures may also avoid a full probate case.
If probate is required, the authority of the court-appointed representative and the type of sale procedures involved will affect when and how the home can be sold.
Before signing a listing agreement or accepting an offer, confirm who has authority to act on behalf of the property.
4. Keep Track of Property Expenses and Important Documents
Even when nobody is living in an inherited home, the expenses continue.
Mortgage payments, property taxes, insurance premiums, utilities, landscaping, and maintenance costs may still need attention.
Start gathering the following information:
Mortgage statements and loan information
Property tax bills and assessment notices
Homeowner's insurance information
Utility account information
HOA documents, if applicable
Trust documents, the will, and recorded property deeds
Receipts for maintenance and expenses related to the property
Keeping an organized record of expenses can be especially important when multiple beneficiaries are involved.
If you're serving as trustee or personal representative, consult the appropriate professional about which expenses should be paid from estate or trust funds and how those transactions should be documented.
5. Understand California Property Tax Considerations
Inherited property can have important property tax consequences, especially under California's Proposition 19.
Under certain circumstances, a parent-to-child transfer of a qualifying family home may be eligible for an exclusion from reassessment. However, eligibility is limited and generally includes requirements involving the property's use as a principal residence.
There are also specific filing requirements and deadlines.
For example, someone inheriting a parent's principal residence who intends to make it their own principal residence should investigate eligibility promptly. In many cases, the homeowner's exemption must be claimed within one year for the applicable exclusion treatment.
A home that will be rented out or sold may be treated differently.
Before making major decisions, speak with the county assessor and a qualified tax professional about how the inheritance may affect your property taxes.
6. Decide Whether to Keep, Rent, or Sell the Home
Once you've addressed the immediate responsibilities, you can begin considering the property's future.
Some families choose to keep an inherited home because of sentimental value or long-term financial goals. Others consider renting it to generate income.
For many heirs, however, selling the property provides an opportunity to settle the estate, divide proceeds, and move forward without the ongoing responsibility of maintaining another home.
Questions worth considering include:
Does anyone in the family want to live in the property?
Can the estate or beneficiaries afford ongoing ownership expenses?
Does the home need substantial repairs or updating?
Are multiple heirs involved in the decision?
Would selling the property as-is make more financial sense?
Is the property located near someone who can manage it?
There isn't one right answer for every family.
The goal is to understand your options so you can make a decision that fits your circumstances.
7. Avoid Making Unnecessary Repairs Before Selling
One mistake inherited-home owners sometimes make is assuming they need to renovate the property before putting it on the market.
That's not always necessary.
Depending on the condition of the home and the local real estate market, it may make more sense to sell the property in its current condition rather than invest thousands of dollars in improvements.
For example, fresh paint or basic landscaping might help a home show better. But a full kitchen remodel, expensive flooring replacement, or major cosmetic renovation may not provide a worthwhile return.
Before spending money, I recommend evaluating:
The home's current condition
Safety issues and active damage
Repairs that may affect financing or insurance
Comparable properties in the surrounding neighborhood
The likely selling price as-is versus after improvements
The time and expense required to complete the work
Sometimes the smartest improvement is the one you decide not to make.
An experienced local REALTOR® can help you evaluate which expenses are worthwhile before you commit to them.
8. Get Local Guidance Before Making Final Decisions
Managing an inherited property can be especially challenging when you live out of town, have multiple family members involved, or are trying to navigate an unfamiliar legal process.
You may need help coordinating vendors, evaluating property condition, arranging cleanouts, understanding the local market, or preparing a home for sale.
Having someone nearby who understands inherited-property transactions can make the process much more manageable.
You don't need to have everything figured out before reaching out for guidance.
Helping Families With Inherited Homes in the Sacramento Area
I'm Lisa Quaschnick, a Sacramento-area REALTOR® and Certified Probate & Trust Specialist with approximately 20 years of real estate experience.
I work with trustees, executors, administrators, and families who are responsible for inherited homes throughout Sacramento and the surrounding communities.
Whether you're just beginning to understand your responsibilities or you're ready to explore selling the property, I'm here to help you navigate the real estate side of the process.
My approach is simple: provide practical information, help you understand your options, and take as much of the property-related work off your plate as possible.
When you're not here, I am.
If you've inherited a home in the Greater Sacramento area and have questions about what comes next, I'd welcome the opportunity to talk.
This article provides general real estate information and is not intended as legal or tax advice. Probate, trust administration, ownership transfers, and tax consequences depend on individual circumstances. Consult qualified legal and tax professionals for advice specific to your situation.
