I inherited a house. Now what?
Inheriting a property comes with legal responsibilities, financial decisions, and tax implications. Generate your state-based probate checklist and explore your options.
Step 1: Customize Your Guide
Selling the Property
Selling allows the heirs to liquidate the asset, pay off any outstanding mortgage or estate debts, and distribute the net proceeds.
- 1
Obtain Letters of Administration or Letters Testamentary from the probate court.
- 2
Get a professional appraisal to establish the property's date-of-death value (critical for step-up tax basis).
- 3
Resolve any active mortgages, reverse mortgages, or property tax liens.
- 4
Clear out personal belongings and coordinate estate distribution or sales.
- 5
List the property on the market or explore direct sales alternatives.
Property Verification
Check if the inherited property has any active mortgage balances, county foreclosure notices, or municipal liens before proceeding.
Data checks are confidential and do not affect property title or credit.
Frequently Asked Questions
What is step-up in basis?
When you inherit real estate, the property's tax basis is "stepped up" to its fair market value on the date of the donor's death. This means if you sell the property immediately, you will pay little to no capital gains taxes.
Do I have to pay inheritance tax?
Most states do not levy inheritance taxes, and the federal estate tax exemption is extremely high ($13.61 million in 2026). However, a handful of states (like PA, NJ, MD, IA, KY, and NE) levy an inheritance tax on certain heirs.
What is the Garn-St. Germain Act?
Under the federal Garn-St. Germain Depository Institutions Act of 1982, lenders are prohibited from enforcing a "due-on-sale" clause when a property is transferred to a relative through inheritance, provided you continue making payments.
What is probate real estate?
Probate is the legal court process that validates a deceased person's will and distributes their assets. Real estate must usually go through probate unless it was held in a trust, joint tenancy, or has a transfer-on-death deed.
Protect Your Home & Verify Your Options
Guardian AI provides completely free, non-alarmist property intelligence to help you stay ahead of scams and verify your legal rights.
Disclaimer: The tools and information provided on this page are for educational purposes only. They do not constitute formal legal advice, tax planning, or estate administration counsel. Please consult a qualified probate attorney or certified public accountant (CPA) for your specific estate situation.