How Do I Sell an Inherited Property in California?
Trust vs. probate timelines, the step-up basis tax win, Prop 19, and the 3-step process: explained by someone who has guided LA County families through this for 13 years.
Selling an inherited property in California means choosing a legal path first. If the property was in a living trust, the successor trustee can sell within 30 to 90 days without court involvement. If it goes through probate, expect 12 to 18 months and statutory fees of 4 to 8 percent of the gross estate. The step-up in basis rule is your biggest tax advantage: and most heirs do not know it exists.
Every few months, I get a call from someone in LA County who has just inherited a parent's home in Pasadena, Glendale, or Burbank. The immediate question is almost always "how long will this take?" followed quickly by "how much will we owe in taxes?" The honest answer to both questions depends on one thing: how was the property held when the parent died?
In my 13 years working with families in Los Angeles County, I have seen inherited property situations range from a 45-day trust sale with zero capital gains owed to a 22-month probate that cost the family over $80,000 in combined fees and carrying costs before the sale even closed. The legal structure set up years before the death determines almost everything about how smooth: or painful: the process will be.
This guide covers every dimension of selling inherited property in California: the trust vs. probate decision tree, the step-up basis rule (the single most valuable tax provision in the U.S. tax code for heirs), Proposition 19's impact on your property tax bill, what happens when siblings disagree, and exactly what the probate referee and attorney fee schedule looks like on a $910,000 LA County home. Use this as a reference, then call me when you're ready to map out your specific situation.
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Trust vs. Probate: The Critical Fork in the Road
The single most important variable in every inherited property situation is whether the property was held in a living trust or titled in the deceased's individual name. These two paths have dramatically different timelines, costs, and levels of court involvement.
When property sits in a revocable living trust, the successor trustee steps in after death and has immediate authority to manage and sell the property: no court permission required. The trustee notifies beneficiaries within 60 days of death (California Probate Code §16061.7), and once the 120-day trust contest period expires, a sale can proceed. In practice, most trust real estate sales in LA County close in 30 to 90 days from listing.
When property is titled in the deceased's individual name: with no trust and a value above California's thresholds: it goes through probate. The executor must petition the Los Angeles Superior Court, obtain Letters Testamentary, satisfy a mandatory 4 to 6 month creditor notification period, and in many cases obtain court confirmation before a sale can close. The standard timeline is 12 to 18 months.
Probate does not always mean 12 to 18 months for the actual sale. If the executor petitions for and receives Full Authority under California's Independent Administration of Estates Act (IAEA), the property can be listed, sold, and closed without a court confirmation hearing: requiring only a 15-day notice to heirs. Full IAEA authority can compress the real estate sale portion of probate to 30 to 90 days, similar to a trust sale, even while the overall probate case continues.
| Factor | Trust Sale | Probate (IAEA Full Authority) | Probate (Court Confirmation) |
|---|---|---|---|
| Sale Timeline | 30–90 Days | 30–90 Days | 4–6+ Months |
| Court Involvement | None | Minimal (15-day notice only) | Full hearing required |
| Overbid Risk | None | None | Yes: anyone can overbid at hearing |
| Total Case Timeline | 3–18 months | 12–18 months | 12–18 months |
| Approx. Admin Cost | 1–2% of value | 4–8% of gross estate | 4–8% of gross estate |
| Price Impact | Market rate | Near market rate | 10–15% discount typical |
| Deposit Required (Buyer) | 1–3% typical | 1–3% typical | 10% cashier's check |
The probate court confirmation process introduces a specific complication: the accepted offer must be at least 90 percent of the Probate Referee's appraised value, and anyone can appear at the confirmation hearing to overbid. The minimum overbid formula is the original accepted price plus 10 percent of the first $10,000 plus 5 percent of the balance. On a $500,000 offer, that means a competing buyer needs to show up with at least $525,500 and a 10 percent cashier's check before they can even bid. For sellers, this process can occasionally push the final price higher: but the uncertainty and delay cost most families more than any potential overbid premium.
For more detail on how the probate sale timeline works from list to close, see my guide on how long it takes to sell an inherited property in California. If you're specifically looking to buy a probate property as an investor, my California probate property finder guide walks through the court record research process.
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Step-Up Basis: The Tax Win Most Heirs in California Miss
If there is one thing I make sure every heir I work with understands before we discuss anything else about the sale, it is the step-up in basis rule. Under IRC §1014, when you inherit property, your tax basis: the number used to calculate capital gains: resets to the fair market value of the property on the date of death. Not the price your parent paid 30 years ago. The value when they died.
The practical impact is enormous in Los Angeles County. If your parent bought a home in Pasadena in 1988 for $180,000 and it was worth $910,000 when they died in 2025, your new basis is $910,000. If you sell it six months later for $940,000, your taxable gain is only $30,000: not the $760,000 gain that would have applied if you had inherited the basis your parent paid. At a combined California and federal capital gains rate that can reach 33 percent for high earners, that distinction is worth hundreds of thousands of dollars.
Parent's original basis in 1988 vs. stepped-up basis at 2025 death. Selling at $940K: tax owed on $30K gain (stepped-up) instead of $760K gain (original basis). Potential tax savings exceed $200,000 for a high-income heir.
California adds an extra layer of advantage for community property. Because California is a community property state, when one spouse dies, both halves of the community property receive the stepped-up basis: not just the deceased spouse's half. This double step-up is unique to community property states and means a surviving spouse who later sells the home pays capital gains only on appreciation from the date of the first spouse's death, not from the original purchase date.
The $250,000 / $500,000 primary residence exclusion under IRC §121 does NOT automatically apply to inherited property unless you actually live in the home as your principal residence for at least 2 of the 5 years before you sell. If you inherit and sell quickly: which is common in probate situations: the step-up in basis is your primary tax protection. The §121 exclusion is separate and requires you to occupy the property.
For inherited properties with mortgages, the federal Garn-St. Germain Act offers another protection: lenders cannot enforce a due-on-sale clause when a property is inherited by a family member. If your parent had a 3 percent mortgage, you can assume that loan on the original terms rather than being forced to refinance at current rates. You must occupy the property as your primary residence to invoke this protection. My full guide on inheriting a California home with a mortgage covers all three options in detail: assume, refinance, or sell.
Federal long-term capital gains rates in 2026 are 0 percent for lower-income filers, 15 percent for middle-income filers, and 20 percent for high earners. California, by contrast, taxes all capital gains as ordinary income with no preferential rate: up to 13.3 percent at the top bracket. For heirs in the highest combined bracket, the total federal plus California rate can reach 33 percent on gains above the stepped-up basis. For detailed calculations specific to your LA County situation, see my dedicated guide on capital gains tax on inherited property in California.
Proposition 19 and Your Property Tax Bill After Inheriting
In February 2021, California voters passed Proposition 19, which fundamentally changed the rules for parent-to-child property tax exclusions. Before Prop 19, California's Prop 58 allowed a child to inherit essentially any property: primary home, rental, vacation house, commercial: and keep the parent's low assessed value without any occupancy requirement. Prop 19 ended that.
Under Prop 19, which applies to transfers on or after February 16, 2021, the parent-to-child property tax exclusion is limited to the family home: and only if the child moves in and makes it their principal residence within one year of the transfer and files for the homeowners' exemption within that same year. If the child does not move in, the property is fully reassessed at current market value, which in many LA County neighborhoods means a property tax increase of $10,000 to $20,000 per year on a single home.
The Prop 19 exclusion for family homes is capped at $1,044,586 above the parent's assessed value for transfers between February 16, 2025 and February 15, 2027. If the parent's home is assessed at $400,000 and the fair market value at transfer is $1,600,000, only the first $1,044,586 of the $1,200,000 increase is excluded. The remaining $155,414 above the cap is reassessed at current value.
What I tell my clients about Prop 19 is this: if you want to keep the family home and hold onto the low property tax base your parents established, you need to move in within one year and file for the homeowners' exemption immediately. If you are going to sell: and most heirs in LA County do sell within the first year: Prop 19 does not affect your sale price or capital gains tax. It only matters if you want to keep the property long-term.
One nuance that trips up families with multiple heirs: only one child needs to make the home their principal residence to qualify for the exclusion on their share. The other children do not get the exclusion unless they each separately make the property their principal residence. If you have three siblings and only one moves in, that sibling qualifies; the other two do not: but that has no bearing on the sale decision for the portions they plan to sell.
If you inherited a rental property rather than a primary residence, Prop 19 offers no exclusion at all. Your parent's rental in East LA or Koreatown will be fully reassessed at current FMV the moment title transfers to you. For families considering whether to convert an inherited rental to a primary residence, I can help you run the numbers on property tax costs vs. rental income vs. sale proceeds. See my dedicated Prop 19 guides: Prop 19 eligibility requirements, Prop 19 family home inheritance rules, and Prop 19 and inherited property in California.
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Selling with Siblings: Buyouts, Disputes, and the Partition Threat
Inheriting with siblings is the situation that most often turns straightforward real estate into a prolonged legal dispute. In California, when multiple heirs inherit real property jointly, every co-owner has equal say over what happens to the property. If one sibling wants to sell and another wants to keep it: or two want to sell and one does not: the disagreement can stall any transaction indefinitely unless someone acts.
The legal tool available to any co-owner is a partition action under California Code of Civil Procedure §872.210. A partition action asks a court to either physically divide the property or, far more commonly, order a forced sale and split the proceeds. The threat of a partition action is often what brings a reluctant co-owner to the negotiating table: the alternative is a 6 to 18 month court process that costs everyone $10,000 to $50,000 or more and results in a forced sale at potentially below-market terms.
- Faster: can close in 30 to 60 days
- Private: no court involvement
- Cheaper: no partition attorney fees
- Preserves family relationships
- Buyer (sibling) keeps all equity upside
- Price is negotiated, not court-imposed
- Timeline: 6 to 18 months in Superior Court
- Cost: $10,000 to $50,000+ in attorney fees
- Forced sale often below market value
- Court controls sale process, not family
- Damages relationships, sometimes permanently
- Additional "accounting disputes" phase common
When I work with families navigating sibling disagreements, the first step I recommend is getting an independent appraisal. Most disputes are not really about whether to sell: they're about what the property is worth. A neutral appraisal from a licensed California appraiser removes the argument about value and lets everyone negotiate from the same set of facts. If a buyout is the goal, the buying sibling can finance their purchase using a conventional mortgage or home equity loan against their own assets to pay out the selling siblings' shares.
California partition law allows any co-owner to seek reimbursement from the estate for expenses they paid unilaterally: mortgage payments, property taxes, repairs, insurance. If one sibling has been paying the bills on an inherited home while others did nothing, those costs can be raised as "accounting disputes" in a partition action and significantly affect how proceeds are divided. Document everything. If you have been carrying the costs alone, keep records so you can be compensated in any eventual settlement or sale.
Early mediation: sometimes before attorneys are even retained: resolves roughly a third of California partition disputes and can cut the timeline from 12 months to 3 to 6 months while saving both parties significant legal fees. California courts encourage mediation, and the cost ($2,000 to $5,000 for a joint mediator) is a small fraction of the cost of going to trial. For a complete breakdown of every option, see my guide on selling an inherited house with siblings in California.
The 3-Step Process: From Legal Clearance to Closing
Regardless of whether the property is in a trust or going through probate, the journey from inheriting to closing follows the same three phases. Where the paths diverge is in how long each phase takes and how much court involvement is required.
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1
Legal Clearance
Determine the title situation: trust, probate, or joint tenancy with right of survivorship. If it's a trust, identify the successor trustee and obtain the trust certificate. If probate is required, file the petition with Los Angeles Superior Court within 30 days of death, pay the $435 filing fee, and petition simultaneously for IAEA full authority if real estate is involved. Notify all beneficiaries. For primary residences under $750,000, investigate the new April 2025 expedited transfer provision: it may allow the property to transfer in 2 to 6 months without full probate.
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2
Property Preparation
Order the appraisal: a Probate Referee appraisal for probate estates (0.1% of appraised value, completes in 1 to 3 weeks, valid for 1 year) or an independent licensed appraisal for trust sales. Run a title search to identify any liens, code violations, or easements. Decide on the as-is vs. repair strategy: most inherited properties sell as-is, but strategic cosmetic improvements: fresh paint, landscaping, staging: can reduce the typical 10 to 15 percent probate discount and are often worth the investment on higher-value LA County properties. For homes with a reverse mortgage (HECM), understand that heirs have approximately 30 days to notify the servicer and up to 6 months to sell, refinance, or buy out the loan at 95 percent of appraised value.
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3
Sale Execution
For trust sales and IAEA-authority probate sales: list the property, accept an offer, serve the required 15-day notice to heirs (probate only), and close escrow. For court-confirmation probate sales: schedule the confirmation hearing 4 to 8 weeks out, publish the required legal notice, accept the highest bid at the hearing (including any overbids at the minimum threshold), and close escrow once confirmed. In all cases, the step-up in basis from the date of death is your baseline for calculating any capital gains. If you plan to sell within six months of inheriting, your gain is almost certainly modest: and in many LA County cases, zero.
In my experience, the families who have the worst outcomes are the ones who wait. The carrying costs on an inherited property in LA County add up fast: property taxes, homeowners insurance, utilities, and in many cases deferred maintenance. A $910,000 property sitting vacant for six months while the family debates costs $15,000 to $25,000 in carrying costs alone. Get the legal clearance process started within the first 30 days. You can always take more time on the sale strategy once the legal clock is running.
For inherited properties with reverse mortgages, the timeline pressure is even more acute. A HECM becomes due and payable when the last surviving borrower dies, and heirs typically have only 30 days to notify the servicer of their intention and up to 6 months to resolve the loan. The critical rule to know is that heirs can purchase the home for the lesser of the loan balance or 95 percent of current appraised value: the non-recourse protection means you will never owe more than the home is worth. See my complete guide on what happens to a reverse mortgage after death in California for all heir options and timelines.
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What Probate Actually Costs in LA County: The Fee Schedule Nobody Shows You
California's probate attorney and executor fees are not negotiated: they are set by statute under Probate Code §10810. Both the probate attorney and the executor are each entitled to a full fee on the same percentage schedule. These are not combined; they are paid separately. The result on a typical LA County property is a number that surprises most heirs.
| First $100,000 of gross estate | 4% | $4,000 |
| Next $100,000 ($100K–$200K) | 3% | $3,000 |
| Next $800,000 ($200K–$1M) | 2% | Up to $16,000 |
| Next $9,000,000 ($1M–$10M) | 1% | Up to $90,000 |
| Next $15,000,000 ($10M–$25M) | 0.5% | Up to $75,000 |
Here is what that looks like on a real LA County number. The median home price in Los Angeles County in early 2026 is approximately $910,000. On a $910,000 estate:
- First $100K at 4% = $4,000
- Next $100K at 3% = $3,000
- Remaining $710K at 2% = $14,200
- Subtotal per person: $21,200
- Total statutory fees (attorney + executor): $42,400
This is calculated on the gross estate value, not net after debts. If there is a $400,000 mortgage on that $910,000 home, the fees are still based on $910,000: not the $510,000 in equity. Add the $435 filing fee, probate referee appraisal (0.1% of asset value, capped at $10,000), publication costs for the legal notice, and bond premiums, and the total probate cost range is typically 4 to 8 percent of gross estate value.
Probate statutory fees (attorney + executor) vs. trust administration costs (1–2% of property value). The trust setup cost of $1,500–$5,000 paid 10 years ago saves $24,000–$33,000 at settlement.
Trust administration, by contrast, typically costs 1 to 2 percent of the property value in trustee fees, accounting, and tax preparation: with no statutory schedule and no court involvement. On that same $910,000 home, trust administration costs run $9,100 to $18,200 total. The math makes the case for living trusts clearly: a trust that cost $2,000 to set up a decade ago saves the family $24,000 to $33,000 compared to probate on a single LA County property.
The New April 2025 Fast-Track Probate Provision for Homes Under $750K
Effective April 1, 2025, California implemented a significant change to probate law that opens a faster path for many families inheriting primary residences in lower-cost LA County neighborhoods. Primary residences valued under $750,000 can now transfer to heirs via an expedited petition process: without going through full probate: in approximately 2 to 6 months.
This is separate from the existing small estate affidavit threshold for personal property ($208,850 as of April 2025). The new $750,000 threshold applies specifically to the primary residence and allows the estate to avoid the full 12 to 18 month probate timeline. For families inheriting homes in parts of South LA, the Valley, East LA, Compton, or Inglewood: where the 2026 median is closer to $600,000 to $750,000: this provision may allow a significantly faster and less expensive transfer process.
The home must have been the decedent's primary residence and valued under $750,000 at the time of death. This is an expedited petition: not a full probate bypass: and still requires filing with the Superior Court, but without the full creditor notice period and court confirmation requirements of standard probate. Consult a California probate attorney to confirm whether your specific estate qualifies.
For context, this is a meaningful update to articles you may have read before 2025. The "12 to 18 months, no exceptions" timeline that many guides cite is now outdated for a portion of LA County inherited homes. If the property qualifies, a family that would have faced 15 months of probate may now be looking at a 4 to 6 month process. Heirs should verify qualification early: within the first 30 days of the death: so the right petition can be filed from the start.
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Quick Reference: What to Do Based on Your Situation
Use this as your starting-point decision guide. Every situation has nuances: call me once you know which row you're in.
| Your Situation | First Action | Expected Timeline |
|---|---|---|
| Property in a trust, ready to sell | Successor trustee lists property: no court needed | 30–90 days to close |
| Primary residence under $750K, no trust | File expedited petition under April 2025 provision | 2–6 months |
| Property over $750K, no trust, will exists | File probate petition + petition for IAEA full authority | 12–18 months probate; 30–90 days for sale portion with IAEA |
| No will (intestate succession) | Petition for Letters of Administration: court appoints administrator | 12–18 months minimum |
| Siblings disagree about selling | Get independent appraisal + demand letter + attempt mediation before partition filing | 3–6 months (mediation) or 6–18 months (partition) |
| Child wants to keep home under Prop 19 | Move in within 1 year + file homeowners' exemption: exclusion capped at $1,044,586 | Must act within 1 year of transfer |
| Home has a reverse mortgage (HECM) | Notify servicer within 30 days: sell, refinance, or buy out at 95% of appraised value | 6 months to resolve (extensions possible) |
| Selling quickly after inheriting | Confirm stepped-up basis with CPA: gain is likely minimal or zero | No waiting period required for tax benefit |
| Joint tenancy (no trust, no probate) | File Affidavit of Death: title transfers automatically to surviving joint tenant | 30–60 days for title update |
Dig Deeper: Related Guides on Inherited Property in California
Each of these guides covers a specific dimension of the California inherited property process in detail.
Frequently Asked Questions
How long does it take to sell an inherited property in California?
It depends on how the property was held. A trust sale can close in as little as 2 to 6 months because no court is involved. Standard probate takes 12 to 18 months due to mandatory creditor periods and court confirmation. Under the new April 2025 fast-track provision, primary residences valued under $750,000 may transfer in 2 to 6 months without full probate.
Do I owe capital gains tax when I sell an inherited house in California?
Your tax basis resets to fair market value on the date of death under the step-up in basis rule (IRC §1014). If you sell quickly after inheriting, your taxable gain is often close to zero. California taxes capital gains as ordinary income up to 13.3%, so even a modest gain can cost you if you wait and the property appreciates significantly before selling.
What is Proposition 19 and how does it affect inherited property in California?
Proposition 19, effective February 16, 2021, limits the parent-to-child property tax exclusion to homes that a child will actually live in as their principal residence. The exclusion is capped at $1,044,586 above the parent's assessed value for 2025 to 2027. If the child does not move in within one year, the property is fully reassessed at current market value, which can dramatically increase property taxes.
What happens if siblings can't agree on selling an inherited house in California?
Any co-owner can file a partition action under California Code of Civil Procedure §872.210, which forces a sale through the courts. This process typically takes 6 to 18 months and costs $10,000 to $50,000 or more. A negotiated buyout or early mediation is almost always faster and cheaper than going to court.
Can I keep my parent's mortgage when I inherit their home in California?
Yes. Under the federal Garn-St. Germain Act, lenders cannot enforce a due-on-sale clause when a property is inherited by a family member. You can assume the original mortgage terms if you occupy the property as your primary residence. The lender cannot force you to refinance or pay off the loan simply because of the ownership transfer.
What is the difference between a trust sale and a probate sale in California?
A trust sale requires no court involvement; the successor trustee can list, negotiate, and close the property in 30 to 90 days. A probate sale with Independent Administration of Estates Act authority is similar but requires a 15-day notice to heirs. Without IAEA authority, court confirmation is required, adding months to the timeline and introducing the risk of competing overbids at the courthouse.
How much does probate cost in California?
Probate costs typically run 4 to 8 percent of the gross estate value. Both the executor and the probate attorney are each entitled to a statutory fee: 4 percent on the first $100,000, 3 percent on the next $100,000, and 2 percent on the next $800,000. For a $910,000 LA County home, each party earns roughly $21,200, totaling over $42,000 in fees alone before court costs.
What is the new California fast-track probate rule for inherited homes under $750,000?
Effective April 1, 2025, California allows primary residences valued under $750,000 to transfer without full probate through an expedited petition process. This can shorten the transfer to 2 to 6 months instead of the typical 12 to 18 months. The threshold is separate from the $208,850 personal property small estate affidavit rule.
Let's Map Out Your Inherited Property Situation
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