Selling an Inherited House in California: Probate & Taxes

Do I need probate to sell an inherited house?

Not always. It depends on how the owner held title:

• Living trust: the successor trustee can typically sell without probate.
• Joint tenancy or community property with right of survivorship: the surviving owner takes title and can sell after recording the proper documents.
• Transfer-on-death deed: the named beneficiary can take title without probate.
• Owned solely, no trust: probate is usually required, although California has simplified procedures for smaller estates and, for deaths on or after April 1, 2025, a streamlined petition for a primary residence valued up to $750,000.

The primary-residence procedure has eligibility and filing requirements; it is not an automatic transfer. See California Courts: simplified procedures to transfer an estate, and confirm the applicable procedure with a probate attorney.

Can you sell a house during probate?

Yes. If the executor or administrator has full authority under the Independent Administration of Estates Act (IAEA), they can usually sell after giving heirs a Notice of Proposed Action, without a court hearing. With limited authority, the sale must be confirmed by the court, and other buyers may overbid at the hearing.

How long does it take?

California probate commonly takes nine months to a year and a half from start to finish. A trust sale can move much faster. A direct buyer can often close within weeks once the person with authority is ready to sign.

What taxes apply when you sell an inherited home?

Inherited property generally takes a tax basis equal to fair market value at the date of death, although exceptions and alternate valuation rules may apply. That value can be higher or lower than the prior basis. Selling soon after inheriting does not guarantee there will be no taxable gain. See IRS guidance on sales of inherited property and consult a tax professional.

For a qualifying family home, Proposition 19 generally requires the inheriting child to use it as a principal residence and meet filing requirements to obtain the intergenerational property-tax exclusion; value limits apply. Family farms have separate rules. See the California Board of Equalization Proposition 19 guidance and ask the county assessor or a tax professional how the rules apply.

What if the heirs disagree?

Co-heirs who disagree can often resolve it by getting clear numbers: an as-is offer, a listing estimate, and the cost of repairs. If they still cannot agree, a California court can order a partition sale — usually the slowest and most expensive route.

Your options for an inherited house

• Sell as-is — leave belongings and repairs behind
• Clean up and list — often nets more on a house in decent condition
• Rent it out — keeps the asset but adds landlord responsibilities
• Move in — may preserve the property tax base under Prop 19