South Bay and Greater Los Angeles
California
Inheriting a home can bring important financial and real estate decisions at a time when families may already be managing many other responsibilities. You may need to determine who has authority over the property, understand what the home is worth, address decades of personal belongings, decide whether repairs are worthwhile, and ultimately determine whether to keep, rent or sell the property.
Lisa Babros and Carrie Miller, Global Real Estate Advisors with Vista Sotheby's International Realty, provide specialized guidance for inherited property sales throughout the South Bay and Greater Los Angeles, including Torrance, Palos Verdes Estates, Rancho Palos Verdes, Redondo Beach, Lomita, Hawthorne, San Pedro and surrounding communities. With more than 36 years of real estate experience, they help heirs, beneficiaries, trustees, executors and families navigate inherited home sales with clarity, discretion and care.
Lisa and Carrie are Certified Probate & Trust Specialists and Seniors Real Estate Specialists® (SRES®), bringing additional expertise to inherited homes, trust and probate property sales, longtime family residences and significant real estate transitions.
Before deciding what to do with an inherited home, one of the most important first steps is determining how the property was owned and who has legal authority to make decisions about it.
An inherited property may be held in a trust, transferred through probate, pass through another legal procedure, or transfer directly depending on how title was held and the circumstances of the estate. California Courts advise that determining the appropriate process for transferring property after someone dies begins with understanding what the person owned and how it was held.
An estate or trust attorney can determine the legal process and who has authority to act.
Once that has been established, Lisa & Carrie focus on the real estate decisions surrounding the property:
What is the home worth?
Should we sell it or keep it?
Should we make repairs or sell it as-is?
What should we do with everything inside the home?
How much should we spend preparing it for sale?
How do we manage the property if we live outside the area?
The goal is to answer these questions before significant money, time or effort is committed to the property.
Inheriting California real estate can trigger a reassessment for property-tax purposes. Under Proposition 19, the previous broad parent-child exclusion was substantially changed.
A qualifying transfer of a family home between a parent and child may receive an exclusion from reassessment when specific requirements are satisfied, including requirements related to use of the property as a principal residence. The amount of the exclusion can also depend on the property's value.
If the requirements are not met, the inherited property may be reassessed to its current fair market value.
Because the financial effect can be substantial, heirs should verify the property-tax consequences with the county assessor and appropriate tax or legal professionals before making long-term decisions based on the property's existing tax bill.
Inherited property generally receives a different tax basis from property purchased during the owner's lifetime.
The IRS states that the basis of property inherited from a decedent is generally its fair market value on the date of death, or an alternate valuation date in certain circumstances. When inherited property is later sold, the difference between the applicable basis and sale amount is relevant to determining the capital gain or loss.
This is commonly referred to as a step-up in basis, although the actual tax treatment depends on the circumstances.
Lisa & Carrie can provide current real estate market information and comparable sales. Questions regarding basis, capital gains, estate taxes or individual tax consequences should be reviewed with a CPA, tax attorney or other qualified tax professional.
Selling an inherited home often involves more than placing the property on the market.
Families may be dealing with a home that has been owned for decades, significant personal property, deferred maintenance, multiple beneficiaries, an out-of-area decision-maker or a trust or probate administration happening simultaneously.
Lisa & Carrie provide a single point of contact for the real estate component of the transition.
Their support may include:
The approach is consultative and property-specific. Before significant estate or family resources are spent, Lisa & Carrie help clients understand the property's condition, current market and available real estate options.
The Inherited Home Sale Process
Yes, once ownership and the legal authority to sell the property have been established.
How that happens depends on how the property was owned. A home held in a living trust may follow a different process from a home that requires probate, while some property may transfer through other procedures. California Courts specifically notes that the appropriate transfer process depends on the type, value and ownership of the property.
Not always.
Property held in a living trust generally is not counted as probate property, and property held with rights of survivorship or certain other ownership arrangements may also transfer without formal probate. California also provides simplified procedures for certain qualifying estates and real property.
A California probate or estate attorney should determine which procedure applies to the particular property.
First determine how title is held and who has legal authority to act.
From the real estate perspective, it is often beneficial to have the home evaluated before cleaning it out, making significant repairs or investing in renovations.
Understanding the property's condition and current market value can help you make informed decisions about whether to keep, rent, improve or sell it.
That depends on the property and your individual circumstances.
Consider the home's current value, mortgage or other obligations, property taxes, insurance, maintenance, condition, potential rental income, ownership among multiple heirs and whether you personally want to own the property.
A real estate analysis can help you understand the property's market and potential sale value. Financial and tax implications should be reviewed with the appropriate professional advisors.
No.
Many inherited homes are sold successfully without major renovation. Whether improvements make financial sense depends on the property's condition, location, price range, cost of the work, buyer expectations and current market.
Lisa & Carrie evaluate the potential benefit of improvements before recommending that significant money be spent.
Yes, an inherited property can potentially be sold in its present condition when appropriate.
An as-is sale does not automatically eliminate applicable contractual or disclosure obligations. The property's circumstances and the authority under which it is being sold should be evaluated before determining the appropriate strategy.
From a marketing standpoint, Lisa & Carrie can help determine how an as-is home should be priced and positioned to reach the appropriate buyers.
When multiple people inherit an interest in the same property, decisions about retaining or selling the home can become more complicated.
The first step is understanding the ownership structure and who has authority to make decisions. If the heirs disagree about what should happen to the property, they should obtain legal advice before proceeding.
The tax consequences depend on the property's basis, sale price and individual circumstances.
The IRS generally provides that inherited property's basis is its fair market value on the date of death, or another permitted valuation date in certain circumstances. The eventual sale may produce a capital gain or loss based on the applicable tax basis and sale transaction.
A CPA or qualified tax professional should calculate the actual tax consequences.
They may.
An inheritance is considered a change in ownership for California property-tax purposes unless an exclusion applies. Proposition 19 provides a limited parent-child and grandparent-grandchild exclusion for qualifying family homes and family farms when specified requirements are met.
The county assessor should determine the property's reassessment and whether an exclusion applies.
This is very common.
You do not need to clean out the entire property before asking Lisa & Carrie to evaluate it.
In fact, it can be helpful to assess the home first. Once the appropriate parties have determined which personal belongings must be retained, distributed or otherwise handled, Lisa & Carrie can help coordinate resources for estate contents, donations, hauling and property preparation.
You do not necessarily need to be physically present for every part of the real estate sale.
Lisa & Carrie can serve as the local real estate point of contact for property access, vendors, clean-out, preparation, inspections, marketing, showings, offers and transaction coordination.
They can also communicate with the trustee, executor, attorney or other authorized parties when appropriate, allowing much of the real estate process to be managed remotely.
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