How to Handle a Probate Sale with No Beneficiaries in California

If there are no beneficiaries in a California probate case, the estate typically escheats to the State of California. However, before that happens, the court must verify that no legal heirs exist. A public administrator is usually appointed to oversee the probate process, manage the sale of assets (like real estate), and ensure any valid debts and taxes are paid before the state takes possession.

What Happens to a Probate Property with No Heirs or Beneficiaries?

In California, if someone dies without a will and without identifiable beneficiaries, the probate process still takes place—but it follows specific procedures under California intestate succession laws.

When there are no legal heirs, the estate becomes “escheated”—meaning it transfers to the State of California. But it doesn’t happen automatically.

Step-by-Step: How Probate Sales Work Without Beneficiaries

Here’s how the probate sale process unfolds when no heirs are identified:

1. The Court Appoints a Public Administrator

• If no family member or heir comes forward, the probate court will appoint a public administrator.

• This is typically a government official or office assigned to manage estates without personal representation.

2. The Public Administrator Takes Inventory

• The administrator locates and inventories all assets in the estate.

• Real estate, bank accounts, personal property, and debts are assessed.

• Properties in Los Angeles County are often appraised based on local market data and may require a court-approved appraisal.

3. Debts and Liabilities Are Paid Off

• Just like any other probate, the estate must settle outstanding debts.

• This includes property taxes, mortgage liens, credit cards, and funeral expenses.

4. The Property Is Listed for Sale

• Once debts are covered, real estate may be sold through a probate sale.

• The public administrator may hire a licensed real estate agent—typically a local probate expert—to list the property on the MLS and manage the sale.

• The court may still require confirmation hearings depending on the county and estate complexity.

5. Proceeds Are Held or Escheated to the State

• If no rightful heir is located within a specific time (commonly 5 years), the remaining estate—after expenses—is escheated to the State of California.

Can You Buy a Probate Property Without Heirs?

Yes. Buyers can purchase probate properties with no beneficiaries—but the process is highly regulated and may take longer.

What Buyers Should Know:

• The public administrator controls the sale—not a private seller or heir.

• Buyers must submit offers that comply with the court’s requirements.

• The sale often follows court confirmation rules unless the estate qualifies for Independent Administration of Estates Act (IAEA) authority.

• Offers may require overbids if a court hearing is involved.

Why This Matters in Los Angeles County

Los Angeles has thousands of probate filings annually. A small percentage involve estates without heirs—especially when elderly residents pass away without family or with outdated wills.

In these cases:

• The Los Angeles County Public Administrator steps in to manage the sale.

• Properties may be distressed or vacant, requiring cleanup or repairs before listing.

• Local probate real estate agents, like The Borges Real Estate Team, are often called upon to handle marketing, showings, and legal compliance.

What Happens if a Heir Is Found Later?

If an heir appears before escheatment is finalized, they can petition the court with proof of relationship. But if they surface after the state has claimed the property:

• They may file a late claim, but success depends on timing and evidence.

• It’s a rare but legally possible event—often requiring legal representation.

How to Avoid Escheatment: Tips for Californians

If you're managing a loved one’s estate or concerned about your own legacy, here are some ways to avoid this situation:

• Create a valid will and keep it updated

• Name beneficiaries on all financial accounts and property deeds

• Use a living trust to transfer assets outside of probate

• Work with a probate-experienced real estate team to handle property sales quickly and compliantly

Los Angeles Example: Vacant Duplex Sold by the County

In 2023, a Highland Park duplex sat vacant for nearly two years after the owner passed away with no known family. The LA County Public Administrator hired a probate-specialized agent to prepare the home for sale. The property sold for $860,000 after court confirmation, and the funds were held pending a final heir search. After five years with no claimants, the proceeds were absorbed by the state.

Need Help with a Probate Property in Los Angeles?

Whether you're navigating a probate with no heirs or you're a buyer interested in public administrator sales, we can help guide you through the process. We’re probate specialists with local experience in Los Angeles and Pasadena.

👉 Contact The Borges Real Estate Team