Inherited Property?
Here's What to Do Next
Inheriting a property can feel like both a gift and a challenge. Whether you’ve just lost a loved one or received a home unexpectedly, it’s natural to feel overwhelmed. This guide will walk you through your next steps with care and clarity, so you can make informed decisions that honor your family and protect your future.
What to Do First After Inheriting Property
1. Take Time to Process
Losing a loved one is emotional. Give yourself space to grieve before making any big decisions. You don’t have to act right away.
“The property may be waiting, but your peace of mind comes first.”
2. Understand the Legal Process
You’ll need to confirm whether the property goes through probate—a legal process that settles the estate. If there’s a will, it may name an executor. If not, the court might appoint one.
- If you’re the executor, you’ll need to gather documents like:
- Death certificate
- The will (if available)
- Mortgage and tax records
- Property deed
- Death certificate
🔗 Related: Estate Planning Basics for Families
🔗 Related: What to Know Before Transferring Property Titles
Your Options With Inherited Property
Keep It
Keeping the home may be a great option if:
- You want to live there.
- You want to rent it for income.
- You want to preserve a family legacy.
Consider:
- Property taxes
- Maintenance costs
- Mortgage or liens (if any)
✅ Tip: You may qualify for first-time homeowner assistance even with an inherited home—check with https://files.hudexchange.info/resources/documents/HOME-CDBGGuidebook.pdf
Sell It
Selling might make sense if:
- The home needs too many repairs
- You live far away
- You’d rather use the funds for other goals
You may owe capital gains tax, depending on the home’s value at the time of inheritance. Ask your CPA for more information
Share or Transfer Ownership
If you inherited the property with siblings or others, you’ll need to agree on:
- Keeping vs. selling
- Who maintains the home?
- How proceeds will be split
A legal agreement or mediation can help protect relationships and avoid confusion.
Practical Tips to Move Forward
✅ Get a Property Appraisal
Know the home’s current market value. This helps with taxes, selling, or refinancing.
✅ Review Home Insurance
Make sure the property is protected during the transition.
✅ Talk to a Housing or Estate Advisor
Nonprofits like B’resheet can walk with you through legal, emotional, and financial decisions.
We’re Here to Help
At B’resheet, we understand how personal inheritance can be. You’re not alone. Whether you’re thinking of selling, keeping, or passing the home on, we’re here with tools and guidance that put your family first.
📞 Contact us today to schedule a free consultation.
📄 Download our free Inherited Property Checklist
💡 Explore more on Estate Planning
Frequently Asked Questions
Do I have to pay taxes on inherited property?
Most states don’t charge inheritance tax, but capital gains tax could apply when you sell. Talk to a tax advisor for clarity.
Can I live in an inherited home with a mortgage?
Yes, but you may need to refinance or assume the mortgage. Check with the lender about next steps.
What if I don’t want the property?
You can disclaim the inheritance or donate/sell the property. An estate attorney can help you do this properly.
What happens if multiple people inherit the home?
All parties must agree on how to handle the home—keeping, renting, or selling. A buyout option is common if one person wants to keep it.
1. What is probate, and do I have to go through it?
Probate is the court-supervised process of settling an estate. It may be required unless the home was held in a trust or joint ownership.
2. How do I find out if there’s a mortgage on the inherited home?
Check the deceased’s financial records or contact the county recorder’s office and the mortgage lender directly.
3. Can I refuse an inherited property?
Yes. You can legally disclaim the property, but it must be done in writing within a specific time frame—usually 9 months.
4. Is an inherited home considered income?
No. The property itself is not taxable income, but selling it may trigger capital gains tax.