Own Luxury Homes®
I Inherited a House: What to Do First
4 steps after inheriting a house: (1) Secure the property and verify insurance. (2) Determine legal transfer: probate takes 6-18 months; trust transfers immediately. (3) Financial check: mortgage balance, unpaid property taxes, liens. (4) Consult a CPA before selling — stepped-up basis often eliminates capital gains tax entirely. Own Luxury Homes® 12-Point Agent Integrity Audit™ — we specialize in inherited properties.
I Inherited a House: What to Do First
Inheriting a house is a significant event that involves simultaneous legal, financial, and emotional decisions. Here is the right sequence.
Step 1: Secure the Property and Insurance
Before any other decisions: change the locks if the property is vacant. Contact your homeowner's insurance to update ownership or obtain a vacant property policy (standard policies typically do not cover vacant homes beyond 30-60 days). Forward the mail. Take photos documenting the current condition, both for insurance purposes and for a future sale. If the property is in another state, arrange for a trusted local contact or property management company to check on it regularly. Vacant properties are targets for theft, vandalism, and damage.
Step 2: Determine the Legal Transfer Mechanism
How you legally received the property determines your legal obligations: Will + probate: the property goes through probate court before you can sell, mortgage, or transfer it. This process takes 6 months to 2+ years depending on the state and whether the will is contested. Living trust: property held in a revocable living trust passes directly to the beneficiary without probate. You receive control quickly. Joint tenancy with right of survivorship: the property automatically transfers to the surviving owner. Consult an attorney to update title. Transfer-on-death deed (in states that recognize it): transfers automatically without probate.
Step 3: Financial Assessment, Then Decision
Before deciding what to do with the property, assess: (1) Is there a mortgage? Call the servicer — most will give you 60-90 days to decide what to do while payments are maintained. (2) Are property taxes current? Unpaid taxes can trigger a tax lien. (3) Are there other liens (contractor liens, HOA liens)? (4) What is the home's approximate market value vs any remaining debt? Then assess your options: sell (most common), rent (income but landlord responsibilities), keep as a primary or second home. Each has different tax implications — consult a CPA before acting on any of them.
“Inherited properties are some of the most emotionally and logistically complex real estate situations I work with. The family is often grieving, the decision timeline feels urgent but is not, and there are usually multiple family members who all have opinions. My first advice is always the same: do not rush. The property is not going anywhere in the next 30 days. Take the time to assess the legal situation, the financial situation, and the tax implications before making any irreversible decision.”
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®
What should I do first when I inherit a house?
Four immediate steps: (1) Secure the property — change locks, verify insurance, address any deferred maintenance that could cause damage. (2) Determine the legal transfer mechanism — probate, trust, joint tenancy, or transfer-on-death deed determines your legal timeline. (3) Financial assessment — check for mortgage, unpaid taxes, liens, and approximate market value. (4) Consult a CPA before selling — stepped-up basis rules may eliminate most or all capital gains tax on a sale.
How long do I have to decide what to do with an inherited house?
There is no universal deadline for inherited property decisions, but some time-sensitive items exist: mortgage payments should continue if there is an outstanding loan (most servicers allow a 60-90 day grace period for estate situations); property insurance should be updated or converted to a vacant policy; property taxes continue to accrue. For probate properties, the estate administrator may have court-imposed timelines. Outside those constraints, you generally have time to make a considered decision.
Own Luxury Homes® — we work with inherited properties. 12-Point Agent Integrity Audit™. Talk to a specialist ›
"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)