Overview
Selling a home after a death, or a home held in a trust, is rarely only a real estate decision. It arrives with conversations among heirs and beneficiaries, paperwork, and often a house full of belongings that carry meaning well beyond their value. It deserves to be handled with patience and order. This page sets out the questions to settle before listing, a sequence for the work, and the points where an inherited or trust sale may differ from an ordinary one.
Sidney is a licensed real estate agent, not an attorney or tax adviser. Nothing here is legal or tax advice. The authority to sell, the court process if any, and the tax effects all depend on documents and facts that an attorney and a CPA should review.
What to have ready
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First, who can sell?
Before anything is listed, it needs to be clear who has authority to sign. The answer depends on how the home is held, for example:
- In a trust
- In a decedent's estate
- By heirs or co-owners who already hold title
- Under a conservatorship
Who may sign, and what steps come first, are questions for the attorney handling the trust or estate. Sidney works alongside that attorney and the escrow officer so the listing follows their direction. The probate page and the Journal note How does a probate home sale work in LA County? cover the court-supervised path in more detail.
A sequence for the work
The order below is general practice. The attorney's direction on authority and timing comes first and governs each step.
- Secure the home. Confirm insurance and tell the insurer the home may be vacant. Change locks if appropriate, keep utilities on and arrange regular checks.
- Find important papers. Before anything is cleared, search for documents, account statements, keys, jewelry and items of sentimental value.
- Confirm authority. The attorney confirms who may sign and what steps come first.
- Agree on a plan among heirs or beneficiaries. Discuss whether to sell, keep or buy out, and put any agreement in writing.
- Obtain a pricing review. A review of comparable sales helps conversations move from opinions to facts. Ask the attorney or CPA whether a formal appraisal is also needed for the estate or for tax purposes.
- Address contents. Let heirs and beneficiaries choose items, then arrange the rest.
- Decide on preparation. Cleaning, small repairs or an as-is sale.
- Prepare disclosures. With the attorney's guidance on which forms apply.
- List and sell, following the attorney's direction on any court steps.
If this, then that:
- If someone is living in the home, then ask the attorney about the arrangements before any listing plans are made.
- If heirs live far away, then ask the escrow officer early how documents will be signed.
- If any heir wishes to keep the home, then raise property tax and Proposition 19 questions with an attorney before deciding.
Planning tool
Estate and Trust Sale Organizer
Keep the page's sequence, who you are waiting on and the people involved in one place. The attorney's direction comes first at every step.
A sequence for the work
0 of 9 steps done.
1Secure the home. Confirm insurance and tell the insurer the home may be vacant. Change locks if appropriate, keep utilities on and arrange regular checks.
2Find important papers. Before anything is cleared, search for documents, account statements, keys, jewelry and items of sentimental value.
3Confirm authority. The attorney confirms who may sign and what steps come first.
4Agree on a plan among heirs or beneficiaries. Discuss whether to sell, keep or buy out, and put any agreement in writing.
After the attorney confirms authority
5Obtain a pricing review. A review of comparable sales helps conversations move from opinions to facts. Ask the attorney or CPA whether a formal appraisal is also needed for the estate or for tax purposes.
After the attorney confirms authority
6Address contents. Let heirs and beneficiaries choose items, then arrange the rest.
After the attorney confirms authority
7Decide on preparation. Cleaning, small repairs or an as-is sale.
After the attorney confirms authority
8Prepare disclosures. With the attorney's guidance on which forms apply.
After the attorney confirms authority
9List and sell, following the attorney's direction on any court steps.
After the attorney confirms authority
People involved
Names and roles only, such as the attorney, escrow officer, CPA, insurer and family members.
Waiting on
Nothing marked as waiting.
A personal organizer. The attorney's direction on authority and timing comes first and governs each step. Property tax and Proposition 19 questions go to an attorney; income tax questions go to a CPA.
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Before listing
Questions to settle before listing
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Disclosures may differ
Some disclosure rules treat fiduciary sales differently.
- Transfer Disclosure Statement. Civil Code section 1102.2(d) exempts "sales or transfers by a fiduciary in the course of the administration of a trust, guardianship, conservatorship, or decedent's estate." The same subdivision says the exemption "shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and is a former owner of the property or was an occupant in possession of the property within the preceding year." Section 1102.2(b) also exempts sales pursuant to court order, including sales ordered by a probate court in the administration of an estate.
- Smoke alarm statement. Health and Safety Code section 13113.8(d) lists among its exemptions transfers ordered by a probate court and transfers by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship or trust.
Other disclosures have their own rules, and an exemption from one form is not an exemption from all duties. Ask the estate's or trust's attorney which apply to your sale. The disclosures overview lists the main forms.
A note on homes with collections and heirlooms
Many long-held homes contain art, furniture, books, silver or collections assembled over decades. These deserve the same care as the house.
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In practice. The clearing of a home often takes longer, and carries more feeling, than anyone expects. Separating the decisions, first papers, then heirlooms, then everything else, keeps the work orderly and spares difficult conversations later.
The clearing of a home often takes longer, and carries more feeling, than anyone expects.
Preparing the home
Inherited homes often need more preparation than a home being sold by its occupant. Steps to plan:
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The Journal note on an executor with a dated home full of belongings walks through this situation, and the inherited property page explains how Sidney helps.
Taxes
Property tax and Proposition 19
If an heir is thinking of keeping the home rather than selling, property tax becomes part of the decision. The State Board of Equalization summarizes Proposition 19's parent-child exclusion for a family home as covering the "principal residence of transferor and transferee," with a value limit that is biennially adjusted. The BOE notes that its page is summary information and that the text of the proposition or its legal interpretation prevails. The BOE adds: "It is highly encouraged that you consult an attorney for advice specific to your situation."
The Journal note How does Prop 19 affect selling or inheriting a home? explains more background.
Income tax questions to bring to a CPA
- How is basis figured for an inherited home? IRS Publication 523 says that if you inherited your home from a decedent who died before or after 2010, "your basis is the fair market value of the property on the date of the decedent's death (or the later alternate valuation date chosen by the personal representative of the estate)." The publication adds further rules, including where an estate tax return was filed, so ask a CPA how it applies to you.
- Does California real estate withholding apply? FTB Publication 1016 lists estates and trusts among the sellers subject to real estate withholding "unless an exemption applies," and says that "if the property being sold qualifies as the decedent's principal residence, withholding is not required if certified on Form 593, Part III."
- Which records should be kept, and for how long?
Questions
Common pitfalls
Clearing before searching.
Documents, keys and valuables are easily lost in a hurried clear-out.
Acting before authority is confirmed.
Listing plans should follow the attorney's direction.
Informal agreements.
Spoken understandings among heirs are easily remembered differently; write them down.
Letting insurance lapse.
A vacant home may need different coverage; ask the insurer.
Assuming every exemption applies.
An exemption from one disclosure form is not an exemption from all duties.
Questions to bring to your advisers
The trust's or estate's attorney
Who may sign, and what must happen first? Is court involvement required? Which disclosures apply? Is a formal appraisal needed?
A CPA
What is the basis of the home? Does California withholding apply, and can any exemption be certified on Form 593? Which records should be kept?
The escrow officer
What documents will you need to show authority? How will heirs or trustees who live elsewhere sign?
Frequently asked questions
Can we sell before probate is finished?
That is a question for the estate's attorney. Whether and when the home can be listed depends on how it is held, whether a court process applies and what authority has been granted, all of which turn on the documents and any court orders. Sidney can begin preparation conversations, such as clearing, cleaning and a pricing review, while those questions are being answered, and then follow the attorney's direction on timing.
Do we need to fix up an inherited home before selling?
No. Many inherited homes are sold largely as they are, after belongings are cleared and the home is cleaned. Others benefit from small repairs. The decision depends on the home's condition, the beneficiaries' wishes and the timing. Sidney can walk the home and talk through the options, and any agreement among beneficiaries is worth putting in writing before money is spent.
What if the beneficiaries disagree about selling?
Disagreements are common and understandable. Sidney can provide a pricing review and explain the options, which often helps conversations move from opinions to facts. But authority to sell, and how disputes are resolved, are legal questions. The trustee or personal representative should speak with the trust's or estate's attorney, and sometimes a neutral mediator can help everyone reach agreement.
Does Proposition 19 apply if we sell the home?
The State Board of Equalization summarizes the parent-child exclusion for a family home as covering the "principal residence of transferor and transferee." Whether Proposition 19 matters to your plans, including a decision to keep or sell, depends on your facts. The BOE says: "It is highly encouraged that you consult an attorney for advice specific to your situation."
What should we do with the contents of the home?
Begin with papers and items of sentimental value, then let heirs and beneficiaries choose what they wish to keep, with their choices recorded in writing. Ask the attorney whether anything must be valued for the estate. Only then arrange donation, sale or removal of the rest. Photographing rooms before anything moves gives everyone a shared record.
Can the home be sold if an heir lives far away?
Usually, yes. Documents can often be signed electronically or with a notary, depending on what the escrow officer and the attorney require. Raise the question early, since arrangements can take time to put in place. A single point of contact among the heirs or beneficiaries also keeps communication with Sidney and escrow clear.
Do we need a formal appraisal of the home?
Possibly. A pricing review is an agent's informed opinion of a likely price range for listing; it is not an appraisal. An estate, trust or tax matter may call for a formal appraisal as of a particular date. Ask the attorney or CPA whether one is needed, and who should prepare it, before the home is prepared or listed.
Official sources
- California Civil Code section 1102.2
- California Health and Safety Code section 13113.8
- California State Board of Equalization, Proposition 19
- IRS Publication 523, Selling Your Home
- California Franchise Tax Board Publication 1016
Settling an estate or trust and thinking about the home? Use the "Ask Sidney about your home" card on this page to send a private note.
When you would like a second set of eyes
When you are ready, Sidney works alongside your attorney and escrow officer so the sale follows their direction.
Sidney Manzo, licensed real estate agent, in real estate since 1990. CA DRE #01108914. RE/MAX Dream Properties (ASLG Inc), CA DRE #02142193.
