What to Do When You Inherit a House in California

First, take a breath. If you've recently inherited a home, you're likely navigating grief at the same time you're facing unfamiliar legal and financial decisions. There is no rush to figure everything out today. Most decisions can wait a little while you gather information, talk with family, and consult professionals. This guide is here to help you understand the landscape — not to push you toward any particular choice.

The very first steps

• Locate the deed, mortgage statements, property-tax bills, and any trust or will documents.
• Order several certified copies of the death certificate — you'll need them for nearly everything.
• Don't make major changes yet: avoid selling, transferring, or refinancing until you understand the legal authority required.
• Secure the property: check locks, utilities, and insurance, and let the homeowner's insurer know the property is vacant if it is.
• Gather a team: a probate attorney, a CPA or tax professional, and — if you're considering selling — a real estate professional.

Does the house have to go through probate?

Not always. If the home was held in a living trust, it may pass outside of probate. If it was held in joint tenancy with a right of survivorship, or as community property with right of survivorship, it may also avoid probate. But if the property was in the deceased person's name alone and valued above California's statutory thresholds, a probate proceeding is generally required to transfer or sell it. A probate attorney can tell you whether probate applies to your situation.

Selling during probate

If probate is required, the executor or administrator typically needs authority from the court to sell real property. Under California's Independent Administration of Estates Act (IAEA), an executor with 'full authority' granted in the letters testamentary can sell real property without a separate court hearing or confirmation — though notice to heirs and certain procedures still apply. Without full authority, a court-supervised sale with confirmation hearing may be required. This is why understanding the estate's legal status early matters.

Property taxes and Proposition 19

California property taxes can change significantly on inheritance. Under Proposition 19, children who inherit a parent's primary residence can retain the parent's lower property-tax base only if they move in and establish the home as their own primary residence within one year and meet eligibility requirements. Otherwise, the property is reassessed to current market value, which can substantially increase the tax bill. A tax professional can help you understand what applies to your family.

What about the mortgage?

Many inherited homes still have a mortgage. Under the federal Garn-St. Germain Depository Institutions Act, a lender generally cannot enforce a 'due-on-sale' clause when a home transfers to a relative upon death — meaning the estate or heirs can often continue making payments while deciding what to do. But you'll need to communicate with the servicer, and missing payments can lead to default. Keep paying if you can, and notify the lender of the transfer.

"You don't have to decide everything at once. The most important first step is understanding your options — and giving yourself the time to grieve while you do."