To sell inherited property in California, first determine if the property is in a trust or requires probate. Trust sales can close in 30-60 days; probate takes 9-18 months. Heirs receive a stepped-up cost basis, minimizing capital gains tax if sold quickly. Proposition 19 affects property taxes for inherited homes not used as primary residences. Secure the property, gather documents, and work with probate-experienced professionals for the smoothest process.
Selling inherited property in California involves legal procedures, tax implications, and emotional decisions that most families encounter only once or twice in their lives. This comprehensive guide covers everything you need to know, from the first steps after inheriting to closing day and beyond.
At The Borges Real Estate Team, we've helped hundreds of families in Pasadena, Altadena, Glendale, South Pasadena, and throughout LA County navigate this complex process.
What This Guide Covers
- First Steps: What to do when you inherit a house
- Legal Process: Trust sales vs. probate sales
- Capital Gains: Understanding stepped-up basis and taxes
- Property Taxes: How Proposition 19 affects inherited homes
- Family Dynamics: Selling with siblings and co-heirs
- Mortgages: Options when inheriting with a loan
- Timeline: How long the process takes
1. First Steps: What to Do When You Inherit a House
The first 30 days after inheriting property are critical. Secure the property immediately to prevent theft or vandalism. Locate essential documents including the death certificate, will or trust, property deed, and insurance policies. Most importantly, determine whether the property will transfer through a trust or require probate—this single factor shapes everything that follows.
→ Read our complete guide: What To Do When You Inherit a House in California
2. Legal Process: Trust vs. Probate Sales
The single biggest factor affecting your sale timeline is whether the property was held in a living trust. Trust sales can close in 30-60 days with minimal court involvement. Probate sales require 9-18 months of court supervision, statutory fees, and potentially public overbidding.
California probate costs approximately 4-8% of estate value in statutory attorney and executor fees alone. Trust administration typically runs 1-2%. For a $1 million property, that difference can exceed $40,000.
→ Read our complete guide: Selling Inherited Property: Trust vs Probate in California
3. Capital Gains: Understanding Stepped-Up Basis
California has no inheritance tax or estate tax. However, you may owe capital gains tax when you sell. The good news: inherited property receives a stepped-up basis to fair market value at the date of death, often eliminating decades of appreciation from your taxable gain.
If your parents bought their Pasadena home in 1975 for $80,000 and it's worth $1.2 million when they pass, your cost basis becomes $1.2 million. Sell for $1.2 million? Zero capital gains.
→ Read our complete guide: Capital Gains Tax on Inherited Property California 2025
4. Property Taxes: Proposition 19 Impact
Proposition 19, effective February 2021, fundamentally changed the economics of keeping inherited property. Previously, children could inherit their parents' low Proposition 13 property tax basis regardless of how they used the property. Now, that benefit only applies if you use the home as your primary residence.
A home with a $200,000 assessed value might be worth $1.5 million today. If you don't move in, property taxes jump from $2,000 to $15,000 annually.
→ Read our complete guide: How Prop 19 Saves (or Costs) You Money on Inherited Property
5. Family Dynamics: Selling With Siblings
Inheriting property with siblings creates an instant partnership. Success depends on clear communication, aligned expectations, and documented agreements. When siblings disagree, California law provides the partition action—a legal proceeding that forces a court-ordered sale. It's expensive ($20,000-$50,000+ per party) and destroys family relationships.
→ Read our complete guide: Selling Inherited House With Siblings: California Guide
6. Mortgages: Inheriting Property With a Loan
Federal law (Garn-St. Germain Act) protects heirs from due-on-sale clauses on inherited property. The lender cannot demand immediate full repayment just because the owner died. You can assume the existing mortgage, refinance, or sell the property and pay off the loan from proceeds.
→ Read our complete guide: Inherited House With Mortgage: Your Options in California
7. Timeline: How Long the Process Takes
Timelines vary dramatically based on transfer type:
- Trust property: 30-60 days from death to closed sale
- Small estate (under $184,500): 2-4 months
- Probate with IAEA authority: 6-12 months
- Court confirmation probate: 12-18+ months
→ Read our complete guide: Timeline: How Long Does It Take to Sell Inherited Property in California
Working With The Borges Real Estate Team
We've specialized in inherited property sales throughout LA County for over 13 years. Our team understands the legal requirements, tax implications, and emotional complexities that make these transactions unique.
What Sets Us Apart:
- Over $200 million in career sales with focus on probate and trust properties
- Deep relationships with local probate attorneys and court systems
- Experience navigating multi-sibling sales and family dynamics
- Understanding of Proposition 19 and stepped-up basis optimization
- 20-member team providing comprehensive support
Frequently Asked Questions
Do I have to use a real estate agent to sell inherited property?
No, but inherited property sales involve complexities that make professional guidance valuable. Probate sales have specific legal requirements. Missteps can delay closing by months.
Can I sell the property if I'm not the only heir?
All co-owners must agree to the sale terms, or the executor/trustee must have authority to sell on behalf of the estate.
What if the inherited property needs extensive repairs?
You have options: sell as-is at a reduced price, complete repairs before listing, or offer repair credits at closing.
How do I find the property's value at the date of death?
Hire a licensed appraiser to provide a retrospective appraisal as of the date of death. This establishes your stepped-up basis for tax purposes.
What happens to personal property in the inherited home?
Personal property must be addressed before sale. Heirs typically divide items by agreement, sell valuables, and donate or dispose of remaining items.
Ready to Discuss Your Inherited Property?
The Borges Real Estate Team provides free consultations for families navigating inherited property decisions.
Justin Borges
Founder & Lead Listing Strategist, The Borges Real Estate Team
Justin Borges is the founder of The Borges Real Estate Team, based at 680 E Colorado Blvd, Suite 180, Pasadena, CA 91101. With over $200 million in career sales and 13+ years of experience, Justin specializes in probate sales, Proposition 19 property tax transfers, and trust property transactions throughout LA County.
Contact: 213-262-5092 | justin@theborgesrealestateteam.com
