Seller guide

Selling an Inherited Home or Trust Property in San Mateo County

Selling a parent's home is a lot to carry. Here is the path, step by step: who has the authority to sell, what changes with taxes, and how to get the house ready without making it harder on the family.

First: who has the authority to sell?

It depends on how the home was held. Find the deed and any trust papers, then match your situation:

The home was in a living trustSuccessor trustee sellsUsually no court involvement. The trustee follows the trust and must notify beneficiaries and heirs within 60 days.
No trust, primary residence up to $750,000Simplified court petitionFor deaths on or after April 1, 2025, heirs can petition to receive the home without full probate, then sell.
No trust, larger estateProbateThe executor or administrator sells, either with notice to heirs (full authority) or with court confirmation (limited authority).

Other assets, like bank accounts, have their own small estate limit ($208,850 for deaths on or after April 1, 2025). This is general information, not legal advice: an estate attorney should confirm your path.

The steps, in order

  1. 1Secure the houseChange locks if needed, keep utilities and insurance active, and tell the insurer it is vacant.
  2. 2File with the assessorA Change in Ownership Statement (BOE-502-D) is due within 150 days of the death.
  3. 3Confirm authorityTrust papers, a court order or letters from probate court.
  4. 4Get a valueA date of death value helps with taxes and with agreeing on a price.
  5. 5Prepare and listClean out, decide what to fix, and market the home.
  6. 6Close and distributeProceeds go to the trust or estate, then to the heirs.

Keep, rent or sell: what happens to taxes

Move in

Under Proposition 19, a child who makes it their principal residence can keep part of the parents' tax base. Excess value above the base plus $1,044,586 is added (for transfers February 16, 2025 to February 15, 2027).

Rent it out

The home is reassessed to market value, which can multiply the property tax bill.

Sell

Inherited property generally gets a stepped up basis to its value at death, so capital gains are often small.

Example: taxable value after a parent passes

Parent today$400,000
Child moves in$955,414
Kept as a rental$2,000,000

Hypothetical home worth $2,000,000 with a parent's taxable value of $400,000. If the child moves in, the new taxable value is $2,000,000 minus $1,044,586. If it is rented, it resets to $2,000,000. California property tax is about 1% of taxable value plus local charges. Talk to a CPA about your numbers.

Getting the house ready

Sell as is, or prepare?

Many inherited homes need updating. I'll show you what a light refresh is likely to return versus selling as is, so the family can decide together.

The clean out

Take photos and keep family items first. I can connect you with estate sale, donation and haul away services.

Out of town heirs

Most of the work can be signed electronically. I can manage access, vendors and showings so you don't have to fly in for each step.

See how I sell homes or start with a free home valuation. Thinking about your own next move at 55 or older? Proposition 19 also lets you carry your tax base to a new home.

Inherited home FAQ

Do I need probate to sell an inherited house in San Mateo County?

Not always. If the home was in a living trust, the successor trustee can usually sell it without court. If it was not, you may need probate, though for deaths on or after April 1, 2025 a primary residence worth up to $750,000 can pass to heirs through a simpler court petition. An estate attorney can tell you which applies.

Can an executor sell a house during probate?

Yes. With full authority under the Independent Administration of Estates Act, the executor or administrator can sell after giving heirs notice, without a court confirmation hearing. With limited authority, the sale must be confirmed by the court, and others can overbid at the hearing.

Will I owe capital gains tax when I sell an inherited home?

Often little or none. For federal tax purposes, inherited property generally takes a basis equal to its fair market value on the date of death, so you are taxed only on gains after that date. Ask your CPA how this applies to your situation.

Will the property taxes go up if I keep my parents' house?

Usually, unless you move in. Under Proposition 19, a child who makes the inherited home their principal residence, and files for the homeowners' exemption within a year, can keep part of the parents' tax base. If you rent it out or use it as a second home, it is reassessed to market value.

Is there a transfer tax when heirs inherit a home?

Transfers to heirs as a result of a death are exempt from the San Mateo County documentary transfer tax. When the heirs later sell, the normal county rate of $1.10 per $1,000 applies, plus the City of San Mateo's tax for homes inside that city.

Settling a family home?

I'll walk through the house with you, give you a value, and lay out the steps, with no pressure on timing.

Sources: Judicial Council: summary succession amounts, including AB 2016; California Courts self help: probate; Probate Code 16061.7 (trustee notice); BOE: Proposition 19 exclusion amount, 2025 to 2027; BOE: Proposition 19; San Mateo County Assessor: change in ownership; San Mateo County documentary transfer tax; IRS Publication 551: basis of inherited property. Facts as of November 2026. This page is general information, not legal or tax advice; Joseph is a real estate agent, not an attorney or CPA.