Inheriting a Home: Legal and Financial Steps You Need to Take

When a loved one passes away, the family home often becomes more than just a place—it turns into a complex responsibility. Whether you intend to keep, sell, or rent the property, there are several legal, financial, and emotional decisions to make. Understanding your obligations and options can help you navigate this process with clarity and confidence.

1. Establishing Ownership and Understanding Probate

Clarify Who Legally Owns the Property

Before making any decisions about the home, it's essential to confirm who has the legal right to do so. This depends on a few factors:

• Whether the deceased had a will or trust naming specific beneficiaries
• The existence of joint ownership with survivorship rights
• Intestate succession laws, if no estate plan was in place

If the property was held in a trust or jointly owned with a right of survivorship, it may pass directly to the surviving co-owner without probate. However, if it was only listed in a will—or if there was no plan at all—then the home will likely need to go through the probate process.

What Happens During Probate?

If the property is subject to probate, the court appoints an executor or administrator to manage the estate. Their responsibilities include:

• Filing the necessary paperwork to open the probate case
• Paying outstanding debts, taxes, and property expenses
• Distributing assets (including the home) in accordance with the will or state law

Probate timelines vary depending on the estate’s complexity. It can take several months—or longer—before the property can be sold or officially transferred to heirs.

2. Covering Ongoing Financial Responsibilities

Inheriting a home means taking over its associated costs. These may include:

• Mortgage payments – If the property still has a loan, someone must continue payments to avoid foreclosure.
• Property taxes and insurance – These continue even if the home is vacant.
• Utilities and maintenance – Basic upkeep and bills must be managed during the transition.
• HOA fees – If the home is part of a homeowners' association, fees must be paid to avoid penalties.

If the property was subject to a reverse mortgage, the estate typically needs to repay the loan—often by selling the home—before any transfer of ownership can occur.

3. Deciding Whether to Keep, Sell, or Rent the Home

Once ownership and probate matters are addressed, heirs will need to determine what to do with the property:

• Keep the home – A good option if a family member wants to live in or preserve the property.
• Sell the home – Often the simplest way to divide assets and pay off estate expenses.
• Rent the home – This can provide passive income, but also requires active management or a property manager.

Disagreements can occur when multiple heirs inherit the property but have different ideas about its future. A clear estate plan and open communication can help reduce tension and avoid legal disputes.

4. Practical Steps for Managing an Inherited Property

Here’s a quick checklist to help you get organized:

• Secure the property – Change the locks, check for damage, and notify the insurance company of the death.
• Evaluate financial obligations – Review any mortgage documents, tax records, or liens tied to the property.
• Order a home appraisal – Knowing the home’s market value is essential for making informed decisions.
• Transfer the title – Work with an attorney to ensure the legal ownership is updated correctly.
• Make a decision – Consider all financial, personal, and legal factors before deciding to keep, sell, or rent.

Get Legal Support for a Smooth Transition

Inheriting a home involves more than just accepting a gift—it often includes probate, ongoing expenses, and emotionally charged decisions. A knowledgeable estate attorney can help you navigate these complexities, ensure proper legal transfers, and avoid costly mistakes.

Key Takeaways

• Probate may be required – If the property wasn’t held in a trust or jointly owned, it likely must go through probate.
• Financial obligations continue – Inheriting a home also means taking over the mortgage, taxes, and upkeep.
• Heirs must decide on the property’s future – Whether you keep, sell, or rent, each path comes with pros and cons.
• Disputes can arise among multiple heirs – Clear communication and legal guidance are key to avoiding conflict.
• Legal assistance streamlines the process – A skilled attorney ensures the estate is handled properly from start to finish.

At The Werner Law Firm, our estate planning attorneys are here to guide you through every step of managing an inherited home. From navigating probate and resolving title issues to understanding your financial responsibilities, we’re committed to helping you make informed decisions that protect your interests and honor your loved one’s legacy.

If you have any questions, schedule a free appointment with us through our online appointment page.

You can also read reviews from some of the hundreds of clients we have helped over the years.

Reference: AllLaw (Aug. 03, 2022) “Transferring Real Estate After Death”