Complete Guide to Inheriting a House in California
Introduction
Inheriting a house in California can bring a flood of emotions—grief, confusion, and often, uncertainty about what to do next. While receiving a home from a loved one may seem like a blessing, it also comes with responsibilities, legal hurdles, and decisions that can deeply affect your future.
Understanding the legal process of property inheritance in California is crucial before you sell, move in, or transfer ownership. The state has specific laws that determine how and when a house passes to heirs, and those laws have changed in recent years—most notably with Proposition 19 and AB 2016, which reshaped how homes are taxed and transferred after death.
This guide breaks down everything you need to know about inheriting real estate in California, including probate, inheritance law, taxes, and what to expect in 2025 and beyond.
Fundamentals of Property Inheritance in California
What Happens When You Inherit a House?
When someone passes away and leaves behind real estate, the first question is: how is it titled?
- If the house was in a
living trust or had a
Transfer-on-Death (TOD) deed, it typically passes directly to the beneficiary without court involvement.
- If the home was titled solely in the decedent’s name, it likely must go through
probate.
- If there’s a
will, it must be validated, and the named executor will petition the court for authority.
- Without a will, the court will appoint a personal representative—usually a close relative—to handle the estate.
Only after this appointment (via
Letters Testamentary or
Letters of Administration) can the home legally be sold, rented, or transferred.
How Inheriting a House in California Differs from Other States
California’s inheritance laws are heavily influenced by high property values and strict probate court procedures. The state also offers some unique tools, like the TOD deed, and laws such as Prop 19, which have a direct impact on your financial outcome.
Inheriting a House from Your Parents: What to Expect
If you’ve inherited a home from your parents, you may expect to keep their low property tax base. But under
Proposition 19, that’s no longer automatic. Unless you move into the home as your primary residence—and even then, only under specific conditions—the property will be reassessed, potentially raising your tax bill significantly. For many, this makes
selling the inherited house the most practical option.
Types of Property Inheritance
Inheriting a House in a Trust in California
If your loved one placed their home in a revocable living trust, you’re in luck. In this case, the house avoids probate entirely. The successor trustee (possibly you) can transfer the home or sell it according to the trust’s terms without court delays.
This is often considered the
best way to inherit a house, as it saves time, money, and stress.
Direct Inheritance vs. Through a Will
A direct inheritance via trust or TOD deed is faster and cleaner. A will, on the other hand, often triggers probate. That means delays, court fees, and legal oversight—especially in California, where probate can last months.
Best Way to Inherit a House in California
Here’s a quick comparison:
Method | Probate Required? | Speed | Email Address | Flexibility |
---|---|---|---|---|
Living Trust | No | Fast | Low | High |
TOD Deed | No | Fast | Low | Moderate |
Will Only | Yes | Slow | High | Low |
No Will | Yes | Slow | dave.hill@mail.com | Low |
The Probate Process in California
What Is Probate and When Is It Required?
Probate is the court-supervised process of validating a will, settling debts, and transferring property to heirs. In California, it’s required if:
- There’s no trust or TOD deed
- The home’s value exceeds the small estate threshold
- Title was solely in the deceased person’s name
Step-by-Step Probate Timeline
- File a petition for probate
- Receive appointment (executor or administrator)
- Notify heirs and creditors
- Inventory assets
- Pay debts and taxes
- Obtain court approval to sell the home (if required)
- Distribute remaining assets to heirs
How Long Does Probate Take?
Depending on court backlogs, probate can take 6 months to over a year. If there’s no opposition or complication, some cases move faster. But sales that require court confirmation (common without Independent Administration of Estates Act authority) can drag out.
Can You Avoid Probate?
Yes. If the home qualifies under the new AB 2016 law—meaning it was the decedent’s primary residence and valued at $750,000 or less—you may use a simplified petition to transfer it without formal probate.
This is a major change from the previous $184,500 threshold and applies to most homes in areas like West Sacramento, Rosemont, and Woodland.
Key Legal Concepts for Heirs
Inheritance Law with a Will vs. Without One
- With a will: The executor named in the document takes charge.
- Without a will: The court appoints an administrator, and
California intestate succession law determines who inherits.
Your Rights as an Heir
You have the right to:
- Be notified of the probate proceedings
- Contest the will (under valid legal grounds)
- Receive your share once the estate is settled
Required Documentation
To
inherit a house, you’ll likely need:
- Death certificate
- Letters of Administration or Testamentary
- Court orders (if probate is involved)
- Affidavit of Death (if using TOD deed)
- Trust certification (if applicable)
House Inheritance Tax Basics
California does not have a state inheritance tax. However, property taxes may increase due to reassessment unless protected by Prop 19’s limited exceptions. On the federal side, if the total estate exceeds ~$13 million (set to drop in 2026), it may face estate tax—though that affects only a small percentage of families.
Special Situations
Can a Person on Disability Inherit a House?
Yes, but it may affect their
eligibility for government benefits like SSI or Medi-Cal. In some cases, placing the home in a
special needs trust preserves both the inheritance and the benefits. Legal advice is essential here.
If You Inherit a House with Multiple Heirs
When multiple siblings inherit a house together, all must agree on what to do—sell, rent, or keep it. If there’s disagreement, one heir can sometimes force a sale through partition action, but that’s costly and can strain family relationships.
Inheriting a House with Debt or a Mortgage
If the house still has a mortgage, the loan doesn’t go away—you’ll need to keep paying or refinance it. Other debts, such as tax liens or unpaid utility bills, may need to be settled before the title can be transferred or sold.
7. How to Proceed the Right Way
Complete Checklist: How to Inherit a House in California
- Get a copy of the death certificate
- Determine how the property was titled
- File for probate if required
- Secure legal authority as executor or administrator
- Clarify ownership and resolve any title issues
- Appraise the property and assess its condition
- Decide whether to keep, rent, or sell
- Handle taxes, debts, and necessary repairs
- Disclose all required information if selling
- Finalize the sale or transfer ownership
First Steps After Inheriting a House
Don’t rush to clean or list the property. First, make sure you have legal standing. Then begin gathering documentation and assessing your options.
Common Mistakes to Avoid
- Listing the home before probate is opened
- Assuming property taxes will stay the same
- Failing to involve co-heirs in decisions
- Ignoring title issues or debts attached to the home
When to Seek Professional Help
When You Need a California Inheritance Attorney
- If the will is contested
- If there’s no will and heirs disagree
- If the property has title complications or multiple liens
- If you’re navigating complex benefits (disability, Medicaid)
What a California Inheritance Lawyer Does
- Guides you through probate
- Prepares and files court paperwork
- Assists with title transfers
- Advises on taxes and asset distribution
Typical Legal Fees
Many inheritance attorneys charge a percentage of the estate or a flat fee for probate filings. Some offer consultations to explain your situation before committing.
Legal Changes in 2024–2025
Proposition 19 (Still in Effect)
As of 2025, children inheriting a house in California can no longer automatically keep the parent's low property tax base unless they move in. This leads many families to sell inherited homes they otherwise might keep.
AB 2016 (Effective April 1, 2025)
This law increases the threshold for a simplified transfer process to $750,000 for primary residences. It’s a significant time- and cost-saver for families inheriting modest homes outside major metros.
What’s Coming?
Efforts to repeal Prop 19 are underway but haven’t made the ballot yet. Meanwhile, California extended the TOD deed law through 2032, solidifying its place as a viable estate planning tool.
Conclusion and Next Steps
Inheriting a house in California is both a legal and emotional journey. With recent legal updates, it’s more important than ever to understand how probate works, what your rights are, and how to avoid costly mistakes.
Whether you decide to keep the home, rent it out, or sell it, make sure you start from a place of clarity and legal authority. If you're feeling unsure, you’re not alone—and help is available.
This is your opportunity to make informed decisions that honor your loved one’s legacy while securing your own peace of mind.









