more difficult. Even when all parties agree to sell, conflicts may occur regarding pricing, marketing strategies, or repairs needed to make the home market-ready. The process is further complicated by the emotional weight of mourning a loved one while trying to make objective decisions about the estate. Maintenance costs, taxes, and vacant property insurance can quickly add up, creating financial pressure on the heirs. Swift action, including deciding on a sale, can help reduce carrying costs and avoid prolonged financial strain.
LEGAL AND PRACTICAL CONSIDERATIONS
The executor named in the will—or appointed by the court if no executor is specified—is responsible for managing the property’s sale and ensuring the estate’s wishes are carried out. In California, probate is often required to transfer title, especially for real estate, unless the property was held in a trust or co-ownership arrangement that bypasses probate. Retaining an attorney experienced in both real estate and estate law can prevent costly mistakes during this process. Inherited homes often require significant repairs or updates to meet market expectations. Homes that have not been updated in decades may need work on heating, plumbing, septic systems, or other essentials. Inspections can uncover additional issues, such as underground oil tanks, that may need to be addressed before the sale. These expenses can accumulate quickly, and heirs must carefully balance repair costs with potential market value.
FINANCIAL IMPLICATIONS AND TAXES
In California, the tax basis of an inherited property is typically stepped up to its fair market value on the date of the original owner’s death. If the property is sold for more than this value, the difference is subject to capital gains tax. When multiple heirs
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