Losing a loved one is hard enough—figuring out what happens to their home or investment property shouldn’t add confusion. Probate is the court-supervised process that validates a will (if there is one), settles debts and taxes, and transfers assets to heirs. Understanding how probate works—and how it impacts real estate—can save you time, money, and stress. Our Inherited Property experts recommend getting clarity on your title, documents, and timelines as early as possible to avoid costly delays.
Probate, Defined
At its core, probate is the legal pathway that moves assets from a deceased person (the “decedent”) to the rightful heirs or beneficiaries. If there’s a will, the court confirms it and empowers the named executor with “Letters Testamentary.” Without a will, the court appoints an administrator under state intestacy laws and issues “Letters of Administration.” Our Inherited Property experts recommend keeping certified death certificates handy—you’ll need them for the court, title company, insurers, and utilities.What probate does:
- Authenticates the will or applies state law if there’s no will.
- Appoints a personal representative (executor/administrator).
- Notifies creditors and gives them a window to file claims.
- Identifies, secures, and values assets, including real estate.
- Pays valid debts and taxes, then distributes what remains.
- Authorizes transfers or sales of property with clean title.
When Does Real Estate Go Through Probate?
Property typically enters probate if it’s titled solely in the decedent’s name and not otherwise directed by a trust or beneficiary deed. Common exceptions include:
- Property titled to a revocable living trust (passes outside probate).
- Joint tenancy with right of survivorship or tenancy by the entirety (survivor takes title).
- Transfer-on-Death (TOD)/beneficiary deeds or Lady Bird deeds (where allowed).
- Small-estate procedures for lower-value estates (state-specific thresholds).
Our Inherited Property experts recommend pulling the most recent recorded deed and any trust documents first. A few words on the deed—like “with right of survivorship” or “TOD”—can completely change your path.
The Probate Timeline at a Glance
Every state is different, but most estates follow a similar arc:
- File petition and death certificate; court issues Letters to the executor/administrator.
- Notify heirs and creditors; publish required notices.
- Inventory and appraise assets (including a valuation of the property).
- Secure, maintain, and insure the property; address urgent repairs.
- Resolve creditor claims, mortgages, taxes, and liens.
- Petition for authority to sell or transfer real estate, if needed.
- Distribute proceeds or title to heirs; file final accounting; close the estate.
Typical timelines range from 6–12 months, longer for contested wills, multiple properties, or complex creditor issues. Our Inherited Property experts recommend setting a 90-day plan for securing the property, ordering title, and mapping a sale-or-hold strategy.
How Probate Affects Inherited Property
Here’s how probate directly impacts your real estate:
- Control and access: Only the court-appointed representative can sign listing agreements, accept offers, or transfer title. Our Inherited Property experts recommend waiting for your Letters before signing anything.
- Maintenance and insurance: Vacant homes need updated coverage, utilities, lawn service, and basic upkeep to protect value and satisfy insurer/HOA requirements.
- Title and liens: A preliminary title report often uncovers mortgages, HELOCs, tax liens, HOA balances, or judgments. Clearing these is part of probate administration.
- Selling during probate: Many states allow sales with court approval or under “independent administration” rules. Some jurisdictions require overbid hearings. Plan for added steps in your timeline.
- Occupants and tenants: Month-to-month tenants, family occupants, or unauthorized occupants require strategy and documentation to avoid delays.
- Privacy and pace: Probate is public and procedural. Trust administration, by contrast, is private and typically faster.
Our Inherited Property experts recommend ordering a preliminary title report and a date-of-death valuation early. Both are foundational for smart decisions and clean closing.
Costs You Should Expect
Probate brings costs you should budget for:
- Court filing fees and publication costs
- Attorney’s fees (statutory or hourly, varies by state)
- Executor/administrator commissions (sometimes waivable)
- Surety bond (unless waived)
- Property carrying costs: insurance, utilities, HOA dues, taxes
- Appraisals, lock changes, safety repairs
- Title, escrow, and recording fees at sale
Our Inherited Property experts recommend requesting a clear fee outline from your attorney and a net sheet from your real estate professional to align expectations.
Taxes and Probate: What Changes—and What Doesn’t
- Step-up in basis: Heirs typically receive a tax basis equal to fair market value at the date of death (or alternate valuation date). This can significantly reduce capital gains if you sell soon after. Community property states may allow a double step-up for spouses.
- Capital gains: If the property appreciates after the date of death, gains may be taxable when sold.
- Property tax reassessment: Ownership changes can trigger reassessment. Many states offer parent-child or surviving-spouse exclusions—rules vary widely.
- Estate/inheritance taxes: Most estates are below federal thresholds, but some states impose separate inheritance or estate taxes.
Our Inherited Property experts recommend documenting fair market value with a professional appraisal or broker opinion as of the date of death and consulting a CPA before listing.
Ways to Simplify or Avoid Probate for Real Estate
Planning ahead can minimize probate friction:
- Revocable living trust: Retitle property to the trust to avoid probate and streamline administration.
- TOD/beneficiary deeds or Lady Bird deeds: Where available, record now to enable automatic transfer at death.
- Joint tenancy with right of survivorship: Can pass property to the survivor, but coordinate carefully with your broader estate plan.
- Small-estate procedures: If your state’s thresholds apply, you may use affidavits or simplified transfers.
- Beneficiary coordination: Align deeds, wills, and beneficiary designations to avoid conflicts.
Our Inherited Property experts recommend an annual deed and beneficiary review—especially after life events like marriage, divorce, or a home purchase.
Selling an Inherited Home During Probate
Yes, you can often sell during probate with the right authority. Keys to success:
- Secure and assess: Change locks, update insurance, and get bids for necessary safety or marketability repairs.
- Get the right value: Obtain a probate appraisal or market analysis to support list price and court requirements.
- Know your authority: Independent administration can speed sales; supervised sales may require court confirmation or allow overbids.
- Fix vs. as-is: Strategic, high-ROI repairs can boost net proceeds; many estates choose clean-out and “as-is” sales to save time.
- Timeline transparency: Buyers need to understand probate milestones; experienced agents keep deals on track.
Our Inherited Property experts recommend working with probate-savvy agents and title companies familiar with local court rules to prevent preventable delays.
Common Pitfalls to Avoid
- Assuming a will avoids probate—it doesn’t on its own.
- Discovering too late that the trust was never funded with a deed.
- Letting insurance lapse or leaving a home vacant without oversight.
- Overlooking HOA violations, municipal liens, or unpaid utilities.
- Mixing estate funds with personal funds—keep a separate estate account.
- Ignoring occupant rights or tenant laws.
Our Inherited Property experts recommend building a 30-day checklist: secure, insure, document, title search, valuation, and a sale-or-hold strategy aligned with heirs.
How Inherited Property Advisors Helps
Inherited Property Advisors guides families from first questions to final closing:
- Determine whether probate, trust administration, or a beneficiary deed controls.
- Coordinate with attorneys, appraisers, agents, title, and tax professionals.
- Provide date-of-death valuations, repair scopes, and net proceeds scenarios.
- Manage clean-outs, light renovations, and investor offers when speed matters.
- Resolve title, lien, HOA, and occupancy issues for a clean, timely transfer.
Our Inherited Property experts recommend contacting us as soon as you locate the will/trust and the most recent deed. One quick review can clarify your best path forward.
Quick FAQs
- Do all estates go through probate?
No. Trusts, TOD deeds, and survivorship titles can keep property out of probate. Small-estate procedures may also apply. - How long does probate take?
Most estates resolve in 6–12 months, but complex assets, disputes, or creditor issues can extend the timeline. - Can we sell the house during probate?
Often yes, with the right authority and court compliance. Requirements vary by state. - What documents should I gather first?
Will or trust, death certificate, latest recorded deed, mortgage/tax/HOA statements, insurance policy, and any liens or judgments.
Ready to move forward with clarity and confidence? Our Inherited Property experts recommend a brief consult to review your documents, timeline, and goals. Contact Inherited Property Advisors today, and let’s map the smoothest route from probate to a successful property transfer or sale.