Got a Family Home in Probate? Here’s How You Can Avoid Common Mistakes

When a loved one’s home enters probate, the family can find themselves facing difficult decisions. Managing a property while it’s under probate isn’t always straightforward, and many heirs in Los Angeles County make mistakes that end up costing them time, money, and stress.

In this blog, we’ll walk you through the most common probate mistakes involving family homes and give you actionable advice on how to avoid them.

Mistake #1: Waiting Too Long to Sell the Property

Probate can take months — or even years — to complete. During that time, property can deteriorate, become a target for vandalism, or accumulate costly repairs. Some heirs think they can wait until the probate process is fully complete before addressing the house, but delaying can lower the value of the home or even prevent it from selling quickly when the time comes.

How to Avoid This Mistake:

• Stay on Top of Maintenance: Regular checks, basic repairs, and routine cleaning can keep the home in good shape.

• Get a Certified Appraisal: Before listing the home, get an accurate value assessment to ensure you know what it’s worth.

• Consult With Experts Early: Speak with probate real estate professionals like The Borges Real Estate Team to help you make decisions quickly and effectively.

Mistake #2: Failing to Understand the Executor’s Role

Not understanding what the executor is allowed to do — or should do — is another common mistake. Executors can be held legally accountable for decisions made during probate. Failing to follow the correct procedures, not notifying all beneficiaries, or mismanaging the estate can result in legal consequences.

How to Avoid This Mistake:

• Know the Executor’s Responsibilities: Understand that the executor must follow the instructions of the will and ensure the estate is administered in good faith.

• Communicate with the Executor: Beneficiaries should communicate openly with the executor about their intentions for the property. Clarity helps avoid disputes.

Mistake #3: Not Planning for Inherited Property Taxes

When you inherit property in California, you may be liable for taxes. These could include property taxes, inheritance taxes (if applicable), or capital gains taxes when the home is sold. Ignoring these financial aspects can result in unexpected costs when the property is sold or transferred.

How to Avoid This Mistake:

• Consult with a Tax Professional: It’s always a good idea to work with a tax professional who understands California’s inheritance laws and probate taxes.

• Account for Capital Gains: If the house appreciates in value, the executor and heirs may need to account for potential capital gains taxes when selling.

Mistake #4: Not Understanding How Probate Affects the Sale of the Home

Many heirs believe they can sell the family home immediately after the probate process starts. In reality, the property typically can’t be sold until the court appoints the executor or administrator and grants authority to manage the estate’s assets. There are strict timelines and procedures to follow, and skipping a step can cause delays or legal issues.

How to Avoid This Mistake:

• Understand the Probate Process: Take the time to understand what’s required before a sale can take place. A probate lawyer or real estate expert can guide you through the specific steps involved.

• Get Court Approval if Necessary: If the estate is under Limited Authority, court approval may be required before a sale can occur.

Mistake #5: Not Clearing the Home Before Listing It

A home that hasn’t been cleared of personal belongings, junk, or even hazardous materials can scare off buyers and lower the sale price. In Los Angeles County, where property values are high, it’s crucial to make sure the home is in good condition before putting it on the market.

How to Avoid This Mistake:

• Hire a Professional Service: Cleaning services, junk removal, or even contractors who specialize in property cleanouts can save time and reduce stress.

• Evaluate the Home’s Condition: Have an inspector or contractor look for issues that could lower the value, such as structural damage or outdated systems that need replacing.

Mistake #6: Not Knowing Your Options

Some families believe they are required to sell the family home after a loved one’s death, but this isn’t true. Depending on the estate’s wishes and the family dynamics, there may be several options for handling the property.

For example, if you don’t want to sell, you may have the option to buy out other beneficiaries’ shares, transfer the property to one heir, or keep the house as an investment.

How to Avoid This Mistake:

• Explore Your Options: Talk to an experienced probate professional or financial planner to understand all of your options for the home.

• Make Informed Decisions: Whether you sell, rent, or keep the house in the family, having all the facts and options laid out will make the decision-making process easier.

Mistake #7: Not Getting Help From Probate Experts

Probate is not something most families deal with on a daily basis. In fact, it’s often something that’s only encountered once in a lifetime. That’s why it’s important to get help from professionals who deal with probate on a regular basis.

A probate real estate expert can help you make smart decisions regarding the property, avoid costly mistakes, and navigate legal requirements with ease.

How to Avoid This Mistake:

• Consult With A Probate Real Estate Specialist: At The Borges Real Estate Team, we specialize in helping families with probate real estate in Los Angeles County. Our team can guide you through everything from maintaining a home to managing the sale, making sure the process goes smoothly and efficiently.