Inherited a Home in Los Angeles? The First Steps, Explained in Plain Language

Brandon Arlington is a Certified Probate & Trust Specialist and Realtor® with Rooster Homes in Los Feliz, Los Angeles, helping families settle the real estate side of an estate at a pace that fits them. This article walks through the questions families ask first.

Inheriting a home often comes at one of the hardest times in a family's life. There is grief, there are siblings to talk with, and suddenly there are court dates, trustees and a house full of memories. Take it one step at a time.

What is the first thing to do?

Find out how title was held. The grant deed for the home shows who owned it and how. That tells you which path the home takes.

A home can usually pass without full probate when it was held:

• In a living trust
• In joint tenancy, with an owner who is still living
• As community property with right of survivorship, with a surviving spouse
• With a recorded transfer-on-death deed

If none of these apply, the home usually goes through probate. A probate attorney confirms the right path for your family. We can help you pull the deed so you have it in hand when you talk with them.

Does the home have to go through probate?

Not always. Besides the routes above, there are a few other paths an attorney may use:

• When a home was meant to be in a trust but was never deeded into it, a court petition (often called a Heggstad petition) may confirm the home belongs to the trust.
• A surviving spouse or registered domestic partner can often use a spousal property petition, a shorter court process than full probate.
• Small estates below a value threshold set by law may use simplified procedures. The threshold is adjusted every few years, so ask your attorney for the current figure.

Who has the authority to sell?

In a trust: the successor trustee named in the trust can sign the listing, accept an offer and close escrow, usually without court involvement. Title and escrow commonly ask for the trust or a certification of trust, plus a certified death certificate.

In probate: the court appoints a personal representative. That is an executor when the will names one who can serve, or an administrator when there is no will. A Los Feliz resident's probate is filed in Los Angeles County, where they lived.

Until the court appoints that person and issues Letters, no one has legal authority to sign a listing agreement or accept an offer. A will alone does not give that authority. This is one of the most common surprises for families.

How does a probate sale work, step by step?

1. The attorney files the petition. The first hearing is usually set several weeks later.
2. The court issues Letters. The personal representative now has authority to act for the estate, with either full or limited authority under the Independent Administration of Estates Act.
3. The probate referee values the home. A court-appointed referee appraises the estate's assets, often without going inside. Interior photos and repair estimates can be sent to the referee through the estate's attorney, so the value reflects the home's real condition. We can take those photos and gather those estimates for you.
4. We prepare and list the home. With the representative's written approval, we coordinate clean-out, locksmith and repair vendors, then market the home.
5. An offer is accepted. With full authority, the attorney sends a Notice of Proposed Action to the heirs at least 15 days before the sale can go forward. If no one objects, escrow can close. With limited authority, the sale goes to court for confirmation, where other buyers may bid higher at the hearing.
6. Escrow closes. The sale money stays in the estate. Creditors generally have four months after Letters are first issued to file claims, and heirs are usually paid after the court approves distribution.

How long does it take?

Full probate in California commonly takes about a year or longer from filing to final distribution. A home sold under full authority can often close within a few months of the case opening. A trust sale usually moves faster, because it generally does not go through court.

Should we sell, rent it out, or keep it?

There is no single right answer, and you do not have to decide on day one. A few things to talk through as a family:

• Taxes when you sell. Heirs who inherit a home often receive a stepped-up tax basis equal to its value at the date of death, which can reduce or remove capital gains tax on a sale soon after. A CPA confirms your family's situation.
• Property taxes if you keep it. Since February 2021 (Proposition 19), an inherited home can keep the parent's property tax base only when it was the parent's main home and the child makes it their own main home within one year, and only up to a capped amount. Otherwise it is reassessed. Ask a CPA or the County Assessor how this applies to you.
• Carrying costs while you decide. Insurance, utilities, HOA dues and upkeep continue. A vacant home may need its insurance updated, since some policies limit coverage when a house sits empty.

What are the most common mistakes families make?

1. Listing before anyone has authority. In probate, nothing can be signed until Letters are issued.
2. Skipping the condition report for the referee. Without interior photos and repair estimates, the appraisal may not reflect the home's real condition.
3. Forgetting the vacant-home insurance. Call the insurance company as soon as the home is empty.
4. Clearing out the house before the family agrees. Talk first, then take care of belongings together.
5. Deciding everything at once. You can take it one step at a time.

What do families say?

Jana Purdy sold her brother's condo through probate with us while living out of state:

"Brandon and Sarah worked closely with me and our lawyers, handling all the details with professionalism and confidence, guiding and advising me through the entire process." (Jana Purdy, Google review)

For attorneys, CPAs, lenders and insurance agents

Your clients often call you first when a parent passes. If you are helping a family with an estate in Los Angeles, this article is written to share. We work alongside the estate's attorney so the real estate side moves at a pace that fits the family, with a clear explanation at every step. You can read more in our posts on why trust and probate attorneys partner with a real estate agent and the top challenges attorneys face with trust clients.

Brandon Arlington is a Certified Probate & Trust Specialist and Realtor® with Rooster Homes in Los Feliz, Los Angeles, helping families settle the real estate side of an estate at a pace that fits them. When we serve, you succeed.

This article is general information, not legal or tax advice. Your attorney and CPA confirm what applies to your family.

Next steps

1. Book a 15-minute call. Pick a time on Brandon's calendar and bring your questions.
2. Call or text us at (323) 201-2724. We are glad to answer questions, even before you are ready to decide anything.

You can also read what families say on our reviews page.

Frequently asked questions

What is the first step after inheriting a home in Los Angeles?

Find out how title was held. The grant deed shows whether the home is in a trust, in joint tenancy, or in the person's name alone, and that usually decides whether it goes through probate.

Can I sell an inherited house before probate is finished?

Often, yes. Once the court issues Letters, the personal representative can sell, and the sale can close before the estate is finished. The sale money stays in the estate until the court approves distribution.

Who signs the listing agreement for a house in a trust?

The successor trustee named in the trust. Title and escrow commonly ask for the trust or a certification of trust and a certified death certificate.

Does a will let the executor sell the house right away?

No. A will names who should serve, but the court has to appoint the personal representative and issue Letters before anyone can sign a listing or accept an offer.

Do I pay capital gains tax when I sell an inherited home?

Heirs often receive a stepped-up tax basis equal to the home's value at the date of death, which can reduce or remove capital gains tax on a sale soon after. A CPA confirms your situation.

Is probate public?

Probate filings are public court records. Trust administration generally is not filed with a court.