Probate and inherited homes in California: a plain-English guide
Losing someone is hard enough without a court process and a house to deal with. This guide explains when probate is needed, how long it usually takes, how a house gets sold during probate, and what to know about mortgages, family disagreements, and property taxes.
General information, not legal advice. Probate rules depend on the facts, the paperwork, and the date of death. Talk to a California probate attorney about your situation. The California Courts Self-Help Guide is also a good free resource.
Is probate needed?
Probate is the court process that puts someone in charge of a person's estate, pays debts, and passes property to the people entitled to it. A house usually needs probate if it was in the person's name alone and no other transfer method applies.
Property that usually doesn't count toward a probate estate:
- Property held in a living trust (the successor trustee usually handles it)
- Property owned in joint tenancy with someone who is still living
- Property that passes directly to a surviving spouse or registered domestic partner
Simpler court procedures can apply in some cases. For deaths on or after April 1, 2025:
- A primary residence worth up to $750,000 may be transferred through a simpler court petition (Petition to Determine Succession), after 40 days.
- A small estate up to $208,850 can use an affidavit after 40 days, but that affidavit is for personal property like bank accounts. It can't transfer a house.
These dollar limits are adjusted every few years and depend on the date of death. Check the current limits with the court or an attorney.
How long probate takes, step by step
The California courts say formal probate typically takes 9 to 18 months, and sometimes longer. Family disagreements, missing heirs, or problems with paperwork can add time.
1. Open the case
Someone files a Petition for Probate (form DE-111) in the county where the person lived. The filing fee is typically $435, and it can usually be paid back from the estate. The court sets a hearing date.
2. Give notice
Family members and anyone who may inherit get notice of the hearing, and a notice is published in a local newspaper.
3. Hearing and Letters
The judge appoints a personal representative (an executor if there's a will, an administrator if not). The court then issues "Letters," the document that proves that person can act for the estate.
4. Inventory and appraisal
The personal representative lists the estate's property and has it valued, usually by a probate referee. It's due within four months after Letters are issued.
5. Creditors, debts, and taxes
Creditors get formal notice, valid debts are paid, and final tax returns are filed. This is often when a house is sold if there's a mortgage to pay off, heirs who want cash, or no one who wants to keep it.
6. Close the estate
The personal representative asks the court to approve final distribution, and what's left goes to the heirs.
Full vs. limited authority (IAEA)
Under California's Independent Administration of Estates Act (IAEA), the court can let the personal representative handle many tasks without going back to court each time. The court grants either full or limited authority. It's shown on the Letters.
| Full authority | Limited authority | |
|---|---|---|
| Can sell the house without a court hearing? | Yes, after giving a Notice of Proposed Action | No. The sale needs court supervision (confirmation) |
| Notice to heirs | Notice of Proposed Action (form DE-165) at least 15 days before the sale | Court hearing notice |
| If an heir objects | The sale then has to go through the court | The court reviews the sale at a hearing |
| Overbids in court? | No. The sale isn't presented to the court for higher bids | Yes. Others can outbid at the hearing |
Selling a house in probate
With full authority
The personal representative accepts an offer, then mails a Notice of Proposed Action to the heirs and others entitled to notice, at least 15 days before the sale can happen. If no one objects in writing, the sale can close like a normal sale, through escrow.
With court confirmation
If the representative has limited authority, or someone objects, the sale goes to a court hearing:
- For a private sale, the price must be at least 90% of the appraised value, based on an appraisal done within the past year.
- At the hearing, other buyers can overbid. The first overbid must be at least 10% more on the first $10,000 of the accepted offer and 5% more on the rest. On a $400,000 offer, that's at least $420,500.
- The judge confirms the sale to the highest qualified bidder, or can order a new sale.
Because others can overbid and a hearing has to be scheduled, court-confirmed sales can take longer and are less certain for a buyer, so it helps to know which kind of authority you have before you list.
An inherited house with a mortgage
- The loan doesn't go away when the owner dies. Tell the servicer about the death as soon as you can.
- The servicer may ask for proof of your right to the home, like the will, the death certificate, or a letter from the executor.
- Ask the servicer how to keep making payments, and whether you can apply for a loan modification. According to the CFPB, if you already have title through inheritance, the lender isn't required to re-check your "ability to repay" before letting you take over the loan.
- Missed payments can still lead to foreclosure, even while probate is open. Keep the payments going if you can, and tell the estate's attorney about any notices right away.
- Reverse mortgages work differently. Ask the servicer and a HUD-approved counselor about your deadlines.
When siblings or heirs disagree
It's very common. One person wants to keep the house, another needs the money, someone lives there, someone lives out of state. A few things that help:
- Get the numbers on paper for everyone: the loan payoff, taxes, insurance, repairs, and what each option would leave for each heir.
- Know the process. With full authority, any heir entitled to notice can object to a proposed sale, which sends it to court. That adds time but gives everyone a hearing.
- Let the estate's attorney lead. The attorney works for the estate. A mediator can also help families reach an agreement without a court fight.
- Be wary of pressure. Rushing, secrecy, or one relative shutting out the others are warning signs. Anyone, including a buyer like us, should put every number in writing for all heirs to see.
Property taxes: Prop 19 basics for inherited homes
Since February 16, 2021, Proposition 19 limits when a child can keep a parent's lower property-tax value:
- It only applies to the parent's family home (or a family farm). Rentals and other property don't qualify.
- The child must make it their own principal residence and file for the homeowners' exemption within one year. The claim form (BOE-19-P) is due within three years, or before the home is transferred to someone else.
- There's a value limit: the parent's taxable value plus about $1 million ($1,044,586 for transfers from February 16, 2025 to February 15, 2027). Value above that gets added to the taxable value.
- If the child moves out later, the home is reassessed.
In practice, an heir who won't live in the home is likely to see a higher property-tax bill, which is one reason some families decide to sell. Ask your county assessor or a tax professional for your numbers. Source: California Board of Equalization.
Probate and foreclosure at the same time
If loan payments stopped after the death, a foreclosure can move forward on its own schedule while probate is still getting started. Until someone has Letters, it can be hard for anyone to deal with the servicer for the estate.
- Write both timelines on one page: the probate hearing date and any foreclosure sale date.
- Tell the estate's attorney about every foreclosure notice right away.
- Call the servicer, explain the situation, and ask what they need from the family.
- See our California foreclosure guide for how the notices and deadlines work.
How we fit in
Our Home Advisor buys houses, including inherited and probate homes, as-is. If selling makes sense for the estate, we can make a written cash offer and work alongside your attorney and the personal representative. We don't give legal or tax advice, and you're never obligated to sell to us.
Common questions
Can we sell the house before probate is finished?
Often, yes. Once the court appoints a personal representative and issues Letters, that person can usually sell, either with a Notice of Proposed Action (full authority) or with court confirmation (limited authority, or if someone objects). The estate's attorney can tell you which applies.
Do we have to fix up or clean out the house first?
No. Many probate homes are sold as-is. The personal representative decides what makes sense for the estate. If a buyer like us makes an offer, we'll buy as-is and the price will reflect that.
Who signs the sale papers?
The personal representative (executor or administrator) appointed by the court, using the authority in their Letters. If the house was in a living trust, the successor trustee usually signs instead.
Will you work with our attorney?
Yes, gladly. We're not attorneys and can't give legal advice, so we'll follow your attorney's lead on paperwork, notices, and timing.
Inherited a house and not sure where to start?
Tell us what's going on. We'll listen, explain the selling side in plain English, and work with your attorney if you decide to sell. No fee, no pressure.
Or call (909) 999-1339, 8 AM to 8 PM Pacific.