Inherited a House? Now What? A California Checklist to Protect Your Money (and Your Family)

by Dar Mardan

Inherited a House? Now What? A California Checklist to Protect Your Money (and Your Family)

A few days after a loss, the house becomes more than a home. It becomes paperwork, pressure, family opinions, and a thousand unanswered questions. Most people think inheriting a house feels like winning the lottery—until they realize how fast it can turn into delays, conflict, and expensive mistakes.

Here’s the truth: selling an inherited home isn’t just “put it on the market.” It’s about LEGAL AUTHORITY, TRUST VS PROBATE, TITLE ISSUES, TAXES (STEP-UP IN BASIS), TIMING, and FAMILY DYNAMICS.

Below is a practical, step-by-step checklist (California focused) to help you protect the value of the inheritance and avoid the most common traps.

The 6 Things to Do First After Inheriting a House

1) SECURE THE HOME (AND KEEP UTILITIES ON)

Your first goal is to protect the asset.

Change the locks
Confirm the insurance is active and appropriate
KEEP UTILITIES ON (this is necessary)

Utilities help prevent avoidable damage and keep the home functional for inspections, repairs, and showings.

2) GET THE RIGHT TEAM EARLY (REALTOR + PROBATE ATTORNEY)

To keep this simple and organized, you need TWO THINGS right away:

An experienced realtor who understands INHERITED HOME SALES, TRUSTS, AND PROBATE
A PROBATE ATTORNEY (AT LEAST INITIALLY) to confirm the legal path—especially if the trust is missing, outdated, or unclear

I’m not an attorney, and I’m not legal counsel. But I’m a CPA and REALTOR®, and I work alongside probate attorneys. I can help you avoid the common real-estate and tax mistakes and connect you with the right probate attorney when needed.

3) PULL PROPERTY TITLE INFORMATION (DON’T ASSUME IT’S CLEAN)

Before you plan repairs, pricing, or even timing—verify the title.

Title issues can include:

Mortgages or HELOCs
Reverse mortgage due at death
Unpaid property taxes
Mechanics liens
Recorded restrictions or other items that can delay closing

The best first step is a PROPERTY PROFILE and/or a PRELIMINARY TITLE REPORT.

If you contact me, I can pull a PROPERTY PROFILE so you can see what’s recorded on the property—and I can help you make sense of it.

4) CONFIRM LEGAL AUTHORITY (WHO CAN ACTUALLY SIGN?)

This is where many families lose months.

You need to determine:

Is there a TRUST?
Is the home actually TITLED INTO THE TRUST?
If it’s not in a trust, does it require PROBATE?

If the home is not in a trust, you often CANNOT SELL YET. You typically need the probate court to establish who has authority to sign and sell.

Probate courts are busy. In many cases it takes MONTHS, and it can go as long as A YEAR OR MORE, depending on the situation.

This is exactly why a probate attorney early can save you from wrong turns and delays.

5) UNDERSTAND TAXES (STEP-UP IN BASIS CAN SAVE YOU BIG)

This is where heirs can accidentally lose a significant amount of money.

In many inheritance situations, you receive a STEP-UP IN BASIS, meaning the tax basis becomes the FAIR MARKET VALUE ON THE DATE OF DEATH, not what your parent originally paid.

To protect yourself, you should strongly consider getting a DATE-OF-DEATH APPRAISAL. This is one of the most important financial documents in the entire process.

As a CPA and REALTOR®, I can help you understand how this can reduce capital gains taxes—but you need proper documentation to support it.

6) INSPECT THE HOME (FOCUS ON THE “BIG FIVE” BEFORE SPENDING MONEY)

Before you remodel or throw money at upgrades, get clarity.

Get a HOME INSPECTION and focus on what I call the BIG FIVE items that most affect value and buyer confidence:

Plumbing / water leaks
HVAC
Roof
Electrical
Foundation

Most families do better by “NEUTRALIZING” instead of renovating:

Declutter and depersonalize
Deep clean
Neutral paint

This protects estate cash and avoids spending $30,000–$60,000 on upgrades that may not pay back.

The 5 Biggest Mistakes to Avoid (Quick Summary)

These are the mistakes that typically cost families the most:

Ignoring title issues until the last minute
Rushing into a quick low offer
Missing step-up in basis and failing to document value
Family conflict because roles aren’t clear
Over-renovating and draining the estate

Best Advice If You Have Aging Parents

If you have a close relationship with your parent, have the conversation now:

Make sure they have a proper WILL + TRUST
Confirm the home is actually TITLED INTO THE TRUST

That planning can save your family major probate delays and ongoing costs later (taxes, insurance, utilities, maintenance) while the home is sitting.

FAQ (California Inherited Homes)

How long does probate take in California?

It depends on the county, complexity, and whether there are disputes. Many cases take months, and some can take a year or more.

Who can sell an inherited house?

Usually the TRUSTEE (if in a trust) or the court-appointed EXECUTOR/PERSONAL REPRESENTATIVE (if probate is required). Until legal authority is established, signing may not be possible.

Do I have to pay capital gains tax when I inherit a house?

In many cases, heirs may benefit from STEP-UP IN BASIS, which can reduce or eliminate capital gains—especially if the property is sold near the date-of-death value. Documentation matters, so consult your tax professional and consider a date-of-death appraisal.

Should I renovate before selling?

Often, major renovations don’t pay back. Start with an inspection and focus on the BIG FIVE. Many inherited homes sell best with decluttering, cleaning, and neutral paint.

Need Help With an Inherited House in California?

If you want a clear plan—legal steps, timing, title concerns, inspection priorities, and tax pitfalls—I’m happy to help you map out the smartest next move.

LET’S USE THIS INFORMATION TO PROTECT YOU, AND LET’S DO SOMETHING GREAT TOGETHER.

AS I TOLD YOU, TOGETHER WE CAN USE THIS INFORMATION TO PROTECT YOU, AND LET’S DO SOMETHING GREAT TOGETHER. THE LINK TO CONNECT IS IN THE DESCRIPTION.

Click Here to Book a Call with Dar Mardan