Inherited a house in Sacramento County? Probate, trusts, and your options
Inheriting a house means decisions at a hard time, and the rules depend on how the owner set things up. Before anyone can sell, someone has to have the legal authority to do it.
First question: was the house in a trust?
If the owner placed the property in a living trust, it usually passes under the trust's terms without going through probate court. The successor trustee named in the trust is generally the person with authority to sell, and a title company will typically ask to see the trust documents and a death certificate.
If there's a will but no trust
Property owned solely in the decedent's name, without a trust or another way to transfer it automatically, usually goes through probate. The executor named in the will asks the court to be appointed, and once appointed, receives the authority to act for the estate, including selling the house, though some sales may require court approval depending on the circumstances. Your probate attorney can tell you whether approval is required in your case.
Executors often want the same thing: to settle the property without a renovation project or months of showings. Take a house that is clean and sound but hasn't been updated since the early 1970s. The executor may have no interest in a full listing process, and selling as-is lets them close out that part of the estate without managing repairs.
Cases where probate may not be needed
California has several ways property can pass without full probate, including joint ownership with survivorship rights, transfer-on-death deeds, and simplified procedures for small estates. The dollar limits for the simplified procedures change, so check current figures with an attorney or the Sacramento County Superior Court's probate resources before assuming a house qualifies.
If there is no will
When someone dies without a will or trust, California's intestacy rules decide who inherits, and the court appoints an administrator. The process often takes longer and requires more paperwork. An attorney can help you figure out where you stand.
Your options for the house
- Keep it, live in it, or rent it. Property tax reassessment rules, including those under Proposition 19, can affect heirs who keep an inherited property, so ask a tax professional.
- List it with an agent. This usually brings the best price when the house is in good shape and you can wait through repairs and showings.
- Sell it as-is to a direct buyer. You skip cleanout, repairs, and showings, and can usually choose the closing date. The price is typically below full market value, because the buyer takes on the work and the risk.
Things that often get overlooked
- Carrying costs. Property taxes, insurance, and utilities continue, and a vacant house needs security and maintenance.
- Insurance. Standard homeowner policies may limit coverage on a vacant property, so tell the insurer. See also selling a vacant house.
- Several heirs. When more than one person inherits, the group generally has to agree, and disagreements can delay everything.
- Taxes. Inherited property often receives a stepped-up tax basis, which can reduce capital gains on a sale, but individual situations differ. A CPA can tell you what applies to you.
Where to start
- Find out whether there is a trust, a will, or neither, and who holds the documents.
- Talk to a probate or estate attorney about authority and timing.
- Get a realistic idea of the house's value and condition.
- Compare selling options, including a direct sale, before you decide.
If you'd like to know what a direct sale would look like, see how it works for inherited homes or send us the address. We'll work with your attorney and be straightforward about whether a cash sale fits.
This article is general information, not legal or tax advice. Estate law is detailed and changes, so consult a California probate attorney about your situation.