Selling an inherited home in LA County: what to know first

When a parent passes away and leaves the house to the family, the questions come fast. Can we sell it? Who signs? Do we owe taxes? What do we do with everything inside?

I've walked a lot of families through this, and most of the stress comes from not knowing the order things happen in. Here's how it usually goes in Los Angeles County.

First, figure out how the house was held

This decides almost everything else. Pull the most recent deed (the county recorder has it) and look at how title is held.

• In a living trust. The successor trustee named in the trust can usually sell the home without going to court. This is the fastest path.
• Joint tenancy or community property with right of survivorship. The surviving owner usually records an affidavit of death and owns the home outright.
• In the parent's name alone, with no trust. In California, that usually means probate.

Since 2021, California also allows a "transfer on death" deed. If your parent recorded one, the named beneficiary may be able to skip probate too.

If the home has to go through probate

Probate is the court process that gives someone (the executor or administrator) legal authority to handle the estate. The person you'll hear about most is the probate attorney, and you'll want one.

A few things that surprise people:

• You can usually sell during probate. You don't have to wait until the whole estate is closed.
• "Full authority" makes it simpler. If the court grants full authority under the Independent Administration of Estates Act, the executor can sell after giving heirs notice, without a court hearing.
• "Limited authority" means a court confirmation. The sale goes before a judge, and other buyers can show up and overbid in the courtroom. It works, it just takes longer.

Your attorney will tell you which one you have. I plan the listing, the timing and the paperwork around it.

Taxes: the two rules worth knowing

Stepped-up basis. For federal capital gains, inherited property generally gets a new cost basis equal to its value on the date of death. If you sell soon after, there's often little or no gain to tax. That's a big deal for a house bought decades ago.

Prop 19. Before 2021, children could often keep a parent's low property tax assessment. Under Prop 19, that only carries over if a child moves in and makes it their primary home, and only up to a limit. If nobody in the family is moving in, the home gets reassessed, which is one reason many families decide to sell.

I'm a REALTOR®, not an attorney or a CPA. Use this to get oriented, then run your situation by a probate attorney and a tax professional before you decide.

Sell as-is, or fix it up first?

Many inherited homes haven't been updated in years. You have three realistic options:

1. Sell as-is on the open market. Clean it out, get good photos, and price it for its condition. Lots of buyers want a project.
2. Do light work first. Paint, flooring, landscaping. This can pay off, but only if the numbers work and the estate can wait.
3. Take a cash offer. Fastest and simplest, usually for a lower price. If that's what the family needs, we can get you cash offers through SoCal TopOffers.

I'll show you what each option would likely put in the estate's pocket so the family can decide together.

A rough order of steps

1. Secure the house: change locks, keep insurance active, keep utilities on.
2. Find the deed and any trust, and talk to a probate attorney if needed.
3. Get a value range so everyone knows what the home is worth.
4. Decide as a family: sell, keep or rent.
5. Clear out belongings. Take your time with the things that matter.
6. List, sell and close, with the attorney and escrow handling the estate side.

Common questions

If your family is dealing with this now, reach out. I'm happy to just talk it through, even if you aren't ready to sell.