Get Your Free Cash Offer Now!
Fill out this form to get your no-obligation all cash offer started!
Fill In This Form To Get Your No-Obligation All Cash Offer Started!
🧩 Step-by-Step — What to Do First When You Inherit a House
🧩Step 1 – Confirm Ownership: Is It in a Trust or Probate?
Before you can sell an inherited house in California, the first thing to figure out is who legally owns the property. If the home was placed in a trust, the process is usually faster. But if it wasn’t, and the property is going through probate, there may be delays — and you’ll likely need court approval before selling.
To understand how the legal process works, check out How the Probate Process Affects Home Sales
Some sellers are surprised to learn they can move forward with a sale even before probate is finalized, depending on their role in the estate. If that might be your situation, we cover it in detail in Can You Sell a Probate Home Before the Process Is Complete?
If you're feeling overwhelmed or dealing with a tricky family situation, you're not alone. We break down common issues — like multiple heirs, repairs, and emotional stress — in Top 7 Things to Know Before Selling an Inherited House in Stockton
🧩Step 2 – Decide What to Do With the Property (Keep It, Rent It, or Sell It)
Once you’ve confirmed legal ownership of the property, the next step is deciding what to do with it. This decision can be more emotional than financial — especially if the home belonged to a parent or someone close to you. And if there are multiple heirs involved, it can get even more complicated.
Here are the three main paths most people consider:
➤ Keep the House
Keeping the house can make sense if you want to move in yourself or hold onto family memories. But remember — you’re also taking on any mortgage, repairs, property taxes, and ongoing maintenance. If you're unsure what ownership really means, we explain your options step-by-step on our How It Works page
➤ Rent It Out
Turning the house into a rental is another option, especially if you live nearby and want to create income. That said, managing tenants, maintenance, and legal issues can be a full-time job. We’ve worked with many tired landlords who initially tried renting, only to decide it wasn’t worth the stress. If that sounds like you, take a look at How to Sell Your House Fast Without Stress
If the inherited home is in poor condition or still full of belongings, becoming a landlord may not be practical. In that case, we can help you explore a faster option on our Sell Your House page
➤ Sell It
For most families, selling the house makes the most sense. It provides closure, avoids family disputes, and allows the proceeds to be split up quickly. If the home needs updates or cleanup, selling it as-is to a cash buyer may save months of time and thousands in repairs.
We break down that option clearly in Top 3 Reasons to Sell Your House to a Cash Buyer in Stockton. You can also learn more about how we’ve helped real families in similar situations on our Success Stories page.
No matter which path you take, the most important thing is doing what’s best for your situation. If you're feeling unsure or overwhelmed, we’re here to help. You can also find answers to common questions on our FAQ page or learn more about who we are on our About Us page.
Most Trusted Cash Homebuyers in Stockton NorCal
See What Our Clients Are Saying
Tim Murphy
Recently, Jon bought my Stockton condo. It was beat up and needed a lot of work including water damage that sat for years. I didn’t think anyone would want it. It was a rental that went really bad, and I needed to sell it fast. I was stressed, Jon was cool and calm, and he bought the condo for $15K more than anyone was offering me!! And it closed in 2-weeks!! Thank you Jon!!!!
Cecilia Castro
Jon Sump went above and beyond to help me with the sale of my mom's home after she passed. It was reassuring to know that he could guide me through the sale with the complications of a trust. I would highly recommend Mr. Sump for his overall dedication, professionalism, and knowledge of real estate.
Mary Webb
Jon was so professional and reasonable with the purchase of my run down rental. With all the repairs/refurbishing needed to prepare it for sale, we reached an agreeable purchase price. It closed escrow in ten days, just as he promised. He saved me a LOT of headaches by taking on this project himself. I know it saved me at least three....
Get Your Free Cash Offer Now!
Fill out this form to get your no-obligation all cash offer started!
Get Your Free Offer TODAY!
Fill In This Form To Get Your No-Obligation All Cash Offer Started!
🧩 Step 3 – What to Do About Repairs, Cleanouts, and Property Condition
After inheriting a house, many people walk into a home that hasn’t been touched in decades. It’s not uncommon to find it full of furniture, personal belongings, outdated appliances, or signs of wear and tear. For some, it’s a manageable cleanup — but for others, it can feel completely overwhelming.
The good news? You don’t have to fix or clean anything if you don’t want to.
Some sellers assume they need to remodel, paint, or deep-clean before they can even think about listing the home. But if the property isn’t move-in ready — or if the idea of clearing it out brings up emotional stress or just plain exhaustion — there’s another way
You can sell the home as-is, even if it’s cluttered, damaged, or has been vacant for years. 209HouseBuyers.com has helped families walk away from inherited homes that required full cleanouts — including properties with everything from hoarding conditions to five dumpsters worth of junk.
If you're exploring this route, and want to understand how the process works without the usual stress, visit our FAQ page or check out the full overview on our How it works page.
Hidden Costs of Holding Onto a Probate Property
Holding onto a probate property can lead to several hidden financial challenges, including:
- Legal Fees: Attorneys and court filing fees during probate.
- Insurance Costs: Higher premiums for vacant or unoccupied properties.
- Loss of Property Value: Deferred maintenance can lead to depreciation.
- Market Fluctuations: Waiting too long to sell could result in lower property values.
By understanding these costs, you can make informed decisions about selling the property. For a faster, simpler solution, discover why selling as-is is a cost-effective probate solution and avoid unnecessary expenses.
🧩 Step 4 – Understand the Tax Implications of Selling an Inherited House in California and The Stats.
1. California Has No State Inheritance or Estate Tax
California does not impose a state inheritance or estate tax, and hasn’t since 1982, when voters repealed the state’s inheritance tax via ballot initiative. That means when you inherit property in California, you won’t owe state-level inheritance tax — which can be a big relief compared to other states.
However, it’s still possible that federal estate taxes may apply, depending on the overall value of the deceased’s estate. But that tax is paid by the estate before anything is distributed — not by the individual heirs.
🔗 Source: Center on Budget and Policy Priorities – State Taxes on Inherited Wealth
2. Federal Estate Tax Considerations
In 2025, the federal estate tax exemption is $13.61 million for individuals and $27.22 million for married couples. Only the portion of the estate that exceeds those thresholds is subject to the federal estate tax — at a rate that can go up to 40%.
This only applies to very large estates, so most families in Northern California won’t be affected, but it’s worth confirming with a tax advisor or attorney if you’re unsure of the estate’s size.
🔗 Source: Moravec, Varga & Mooney LLP – California Inheritance Tax Guide
3. Capital Gains Taxes and the Step-Up in Basis
When you inherit property in California, understanding the step-up in basis is crucial for minimizing potential capital gains taxes upon sale.
What is a Step-Up in Basis?
The step-up in basis is a tax provision that adjusts the property's cost basis to its fair market value (FMV) at the time of the decedent's death. This means that any appreciation in the property's value during the decedent's lifetime is not subject to capital gains tax.
Example:
Your parent purchased a home for $200,000.
At the time of their passing, the home's FMV is $600,000.
You sell the home shortly thereafter for $610,000.
In this scenario, your capital gain is only $10,000 (the difference between the sale price and the stepped-up basis), not the full $410,000 increase from the original purchase price.
This provision can significantly reduce or even eliminate capital gains taxes when selling inherited property.
California-Specific Considerations:
In community property states like California, a surviving spouse may benefit from a double step-up in basis, receiving a full adjustment for community property assets. This can further reduce potential capital gains taxes when the property is eventually sold.
For more detailed information on how the step-up in basis applies in California, consider reviewing these resources:
Moravec, Varga & Mooney LLP – How to Avoid Capital Gains Tax on Inherited Property in California
Understanding these provisions can help you make informed decisions when selling inherited property and potentially save on significant tax liabilities.
4. Proposition 19 and Property Tax Reassessment
California’s Proposition 19, which went into effect in February 2021, changed how property taxes work on inherited homes. Here’s what it means:
If you move into the home as your primary residence, and file for a homeowner’s exemption within a year, you may be able to keep the original property tax base (just like your parent or relative had).
If you don’t move in, or if you plan to rent or sell it, the home will likely be reassessed at full market value — which could lead to a big jump in annual property taxes.
This reassessment has caught many people off guard — especially when a home that previously had a $1,200/year tax bill jumps to over $7,000.
🔗 Source: Blacksburg Law – How Prop 19 Affects Inherited Property in Trust
5. How Many Homes Are Inherited in California Each Year?
The numbers might surprise you.
According to California’s Legislative Analyst’s Office, between 60,000 and 80,000 properties are inherited every year in the state — most commonly from parents to children.
Over the last decade, more than 650,000 parent-child property transfers took place without reassessment, thanks to the pre-Prop 19 rules.
Today, many of those transfers are still occurring — but with increased probate filings due to a lack of estate planning or trusts.
🔗 Source: California Legislative Analyst’s Office – Inherited Property Transfers
As for how many go through probate vs. trust:
The California Courts explain that any property not held in a trust, joint tenancy, or other non-probate method will typically require probate.
On the other hand, living trusts (also called revocable trusts) are specifically designed to avoid probate. If the house was placed into a trust properly, it can often be sold or transferred immediately by the named trustee — without court involvement.
🔗 Source: California Courts – Probate Overview
If you're considering selling an inherited property in California, knowing how these taxes and rules apply to your situation is crucial. Always consult with a qualified professional — and if you're overwhelmed, you're not alone. We've helped families throughout Stockton, Modesto, and beyond sort through complex inheritance situations with care and clarity.
Disclaimer:
We are not tax professionals. The information above is for general guidance only. Please consult with a qualified CPA, tax advisor, or estate attorney before making decisions related to taxes or inheritance.
Final Thoughts and Next Steps
Inheriting a house in California can feel like a blessing and a burden. There’s the emotional side — loss, memories, family tension — and the practical side: probate, taxes, cleanup, and tough financial decisions.
If you're trying to sell quickly, manage multiple heirs, or just feel overwhelmed, the most important thing to know is: you don’t have to figure it all out alone.
209housebuyers.com has helped homeowners across Stockton, Modesto, Lodi, and throughout Northern California navigate inherited property sales with clarity and confidence — from probate timelines to full cleanouts to closing day.
Need help understanding your options?
Visit our FAQ page , get a full walk-through on our How It Works page, or read real stories about our sellers we’ve helped on our Success Stories page.
When you're ready, you can chat with us live, or call/text (209) 457-5454 — no pressure, no obligation.
Get Your Free Cash Offer Now!
Fill out this form to get your no-obligation all cash offer started!
Fill In This Form To Get Your No-Obligation All Cash Offer Started!
Why Choose 209 House Buyers?
At 209 House Buyers, we specialize in working with homeowners to simplify their Inherited property process. We provide fair, transparent all-cash offers and handle every step of the house-selling process, ensuring you can sell with confidence. Here's what you can expect when working with us:
- Fast Closings: Complete your sale in as little as 7-14 days.
- No Repairs or Fees: Sell your property as-is with no hidden costs.
- Stress-Free Process: We handle all the paperwork and logistics for you.