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Inherited a Home in California? Probate, Trust Sales and Your Options

By Bilal Salimi, Broker, DRE# 01480904 · NMLS# 300923 · Updated October 28, 2026

With an inherited California home, you can usually sell it, move in, rent it out, or have one heir buy out the others with a refinance. Which is best depends on whether the home is in a living trust (no court needed) or must go through probate (typically 9 to 18 months), and on how Prop 19 will change the property tax.

Your options

Sell the home

Best when: No heir wants to live there, or the heirs want to divide the value.

Pros

Heirs usually get a "stepped-up" tax basis to the value at the date of death, so there is often little taxable gain
Probate and most trust sales are exempt from the standard Transfer Disclosure Statement (TDS), though other disclosure duties, such as known material facts and natural hazard disclosures, can still apply
Ends carrying costs and property tax questions

Watch out for

In probate, the sale may need court confirmation and an overbid hearing
Who can sign depends on how the home is held: the successor trustee under the trust terms, or the court-appointed personal representative in probate. Heirs may be entitled to notice and can object, and some sales require a court hearing

Move in (Prop 19 family-home exclusion)

Best when: A child or grandchild wants to live in a parent's home.

Pros

The heir can keep the parent's low property tax base, up to a cap, if the home becomes their principal residence within 1 year
For transfers from Feb 16, 2025 to Feb 15, 2027, the cap is the parent's taxable value plus $1,044,586

Watch out for

Market value above the cap is added to the tax base
Must file the homeowners' exemption within 1 year and the Prop 19 claim (BOE-19-P) within 3 years

Keep it as a rental

Best when: The heirs want income and long-term ownership.

Pros

Rental income and possible appreciation
Stepped-up basis resets depreciation

Watch out for

Under Prop 19, an inherited home that isn't the heir's principal residence is reassessed to market value
Local rent and eviction rules apply

One heir buys out the others

Best when: One sibling wants the home and the others want cash.

Pros

Fannie Mae waives its usual 12-month ownership requirement for recent inheritances
A refinance can pay the other heirs their share

Watch out for

The buying heir must qualify for the loan
Needs a written agreement with the other heirs, approved by the trustee or personal representative where required

Is probate required?

Not always. Homes held in a living trust or in joint tenancy usually pass without probate. For deaths on or after April 1, 2025, California also has a simpler court petition for a primary residence worth up to $750,000. Otherwise, a home usually goes through formal probate.

How the home is held	What happens	Court?
Living trust	The successor trustee records an Affidavit of Death of Trustee with a certified death certificate and sells or transfers under the trust's terms.	No
Primary residence worth up to $750,000 (death on or after 4/1/2025)	Petition to determine succession to real property, filed at least 40 days after death.	Short court process
No trust, above the limits	Formal probate: a personal representative is appointed and administers the estate.	Yes, typically 9–18 months

How a probate sale works

Full authority (IAEA): the personal representative can sell without court confirmation by giving heirs a Notice of Proposed Action at least 15 days before acting.
Limited authority or court confirmation: the offer must be at least 90% of an appraisal made within the past year, and at the hearing other buyers can overbid. The first overbid must be at least 10% of the first $10,000 of the original bid plus 5% of the rest.
In Alameda County, probate papers are filed at the Berkeley Courthouse, and hearings are held in Berkeley or Oakland.

How I help

I handle probate and trust sales: pricing to the appraisal, court-confirmation and overbid sales, coordinating with the estate attorney, and preparing a home for sale while it sits vacant. If one heir wants to keep the home, SI MTG can structure the buyout refinance. I can lay out the numbers for selling, keeping and renting side by side so the family can decide together. Run your own numbers with the Prop 19 inherited home calculator.

Frequently asked questions

Do I have to go through probate to sell an inherited house in California?

Not if the home was in a living trust or held in joint tenancy. For deaths on or after April 1, 2025, a primary residence worth up to $750,000 can pass through a simpler court petition. Otherwise formal probate is usually required, which typically takes 9 to 18 months.

How long does probate take in California?

Formal probate typically takes 9 to 18 months. Under California law, the personal representative generally must close the estate within a year of appointment, or 18 months if a federal estate tax return is required.

Will my property taxes go up if I inherit my parents' house?

Under Prop 19, you can keep your parents' tax base, up to a cap, only if the home becomes your principal residence within one year. For transfers from Feb 16, 2025 to Feb 15, 2027, the cap is the taxable value plus $1,044,586. If you rent it out or keep it as a second home, it is reassessed to market value.

Do I pay capital gains tax when I sell an inherited house?

Usually on very little. Heirs generally get a tax basis equal to the home's fair market value at the date of death, so tax is owed only on any gain after that date. For community property, both halves can get the new basis when one spouse dies.

Can one sibling buy out the others?

Yes, usually with a refinance. Fannie Mae waives its 12-month ownership requirement for recent inheritances, and buying out a co-owner under a written agreement can qualify as a limited cash-out refinance.

Does a probate sale need seller disclosures?

Probate and most trust sales are exempt from the standard Transfer Disclosure Statement. The exemption doesn't apply to a trustee who owned or lived in the home within the past year, and other disclosures, such as known material facts, can still apply.

Settling an estate? Get a no-cost value estimate and a plan for the home.
A confidential, no-pressure conversation about your options. Book a free consultation, call (510) 786-8739, or get a free home value evaluation.

Other homeowner situations

Sources

This page is general information, not legal or tax advice. Probate and trust administration should be handled with a probate attorney, and Prop 19 and basis questions with a tax professional. Visionary Estates · 44840 S Grimmer Blvd, Fremont, CA 94538 · DRE# 01480904 · CA Insurance Lic. #0F85254. Loans arranged through SI MTG, the mortgage division of Salimi Investments, NMLS# 300923 (a broker, not a lender).