To sell an inherited house in Sacramento you first need legal authority to sell: a successor trustee if the home was in a living trust, or a court-appointed executor or administrator through Sacramento County probate if it was not. Then decide whether to keep, rent or sell, knowing that Prop 19 can raise the property tax and the step-up in basis often lowers the income tax on a quick sale.
By Gary Burmaster, California real estate salesperson and CEO of All Inclusive Realty Group, Inc. Updated October 25, 2026. General information only, not legal or tax advice.
Inheriting a house usually arrives at the worst possible time, with grief, family decisions and a property full of belongings. Many heirs live out of the area. Some inherit a rental with a tenant still in it. This guide walks through the order things actually happen in, so you can make the decision once and make it well.
Who has the authority to sell an inherited house in California?
| How the home was held | Who can sell | Court involved? |
|---|---|---|
| In a living trust | The successor trustee named in the trust | Usually no |
| Joint tenancy or community property with right of survivorship | The surviving owner, after recording an affidavit of death | No |
| Transfer-on-death deed (Probate Code 5600 and following) | The named beneficiary, after the steps the statute requires | No |
| In the decedent's name alone, no trust | An executor or administrator appointed by the Sacramento County Superior Court | Yes, probate |
California also has simplified procedures for smaller estates, starting at Probate Code 13100. The dollar limits adjust periodically, so check the current figure with a probate attorney before relying on one.
How does selling a house through probate work in Sacramento?
- Open probate. A petition is filed with the Sacramento County Superior Court, and the court appoints the personal representative and issues letters.
- Get sale authority. With full authority under the Independent Administration of Estates Act (Probate Code 10400 and following), the representative can usually sell after giving heirs a Notice of Proposed Action, without a court confirmation hearing.
- Court confirmation if required. With limited authority, or if an heir objects, the sale goes to a confirmation hearing where other buyers may overbid under Probate Code 10311.
- Close through escrow. The proceeds go to the estate and are distributed under the will or the law of intestate succession after debts, taxes and costs.
Probate takes time, often many months. A trust sale is usually much faster because no court is involved.
What does Prop 19 mean for an inherited Sacramento house?
Proposition 19, in Revenue and Taxation Code 63.2, changed the parent-to-child property tax exclusion for transfers on or after February 16, 2021:
- The child can keep the parent's lower assessed value only on the parent's family home, and only if the child makes it their principal residence within one year.
- The exclusion is capped at the old assessed value plus about $1 million, an amount adjusted every two years. Value above that is added to the assessment.
- An inherited rental or second home is reassessed at market value. For many Sacramento heirs that means the property tax on a long-held rental jumps.
A change in ownership statement must be filed with the Sacramento County Assessor within 150 days after the date of death under Revenue and Taxation Code 480, and the exclusion has its own claim form with filing deadlines. Ask the assessor's office or your attorney which forms apply.
Do I pay capital gains tax when I sell an inherited house?
Often very little. Under Internal Revenue Code Section 1014, inherited property generally receives a new tax basis equal to its fair market value on the date of death. If you sell soon after for about that value, there is little or no gain. In California, a community property state, when a spouse dies both halves of community property can receive the new basis, not just the deceased spouse's half. Get a date-of-death appraisal; it is the number your CPA will need.
Should I keep, rent or sell the inherited house?
Run all three before deciding:
- Keep and live in it. Best when it can be your principal residence within one year, so the Prop 19 exclusion may apply.
- Keep and rent it. Check the reassessed property tax, insurance, repairs and the cost of management against the realistic rent. California rental rules, including AB 1482 (Civil Code 1947.12 and 1946.2) and the one-month deposit limit in Civil Code 1950.5, will apply to the new tenancy.
- Sell. Often the simplest answer when there are several heirs, the house needs work, or nobody lives nearby. The stepped-up basis keeps the tax low on a near-term sale.
What if the inherited house has a tenant?
The lease survives the death. The trust or estate steps into the landlord's shoes, collects the rent, keeps up the property and holds the security deposit. A tenant who has been in place 12 months is generally covered by just cause rules under Civil Code 1946.2, so the tenancy can only be ended for a legal reason. Many inherited rentals are sold with the tenant in place to an investor buyer.
What should I do in the first 30 days?
- Secure the house: change locks, confirm insurance covers a vacant property, and keep utilities on.
- Find the will, trust and deed, and identify who has authority to act.
- Keep paying the mortgage, property tax and insurance from estate funds if possible.
- Do not give away or sell belongings until the representative or trustee has authority.
- Order a date-of-death appraisal for the tax basis.
- Talk to a probate or trust attorney and a CPA before listing.
How does AIRG help with inherited Sacramento properties?
AIRG buys inherited homes as-is, all cash, including probate situations and homes still full of belongings. We handle the cleanout, so you take what you want and leave the rest, and you can handle it from anywhere. There is no cost or obligation to ask, and we reach out within one business day. We recently bought a Sacramento rental on 40th Street directly from the owner: as-is, all cash, no agent commissions, closed on the seller's timeline. If the family decides to keep the house as a rental, our Property Management team can take it over.
Get an as-is cash offer on an inherited Sacramento house
Frequently asked questions
Can I sell an inherited house before probate is finished?
Yes, once the court has appointed a personal representative with authority to sell. With full authority under the Independent Administration of Estates Act, the sale can usually close without a court confirmation hearing.
Do I have to go through probate to sell an inherited house in Sacramento?
Not always. Homes held in a living trust, in joint tenancy, or under a transfer-on-death deed usually pass without probate. A home in the decedent's name alone generally requires probate unless a small estate procedure applies.
Will my property taxes go up if I inherit my parents' house?
Under Prop 19, the house is reassessed unless it was the parent's family home and becomes your principal residence within one year, and even then the exclusion is capped. Inherited rentals are reassessed at market value.
Do I owe capital gains tax on an inherited house?
Usually little if you sell soon. Inherited property generally gets a stepped-up basis equal to its value at the date of death under IRC Section 1014, so gain is measured from that value.
Can I sell an inherited house with belongings still inside?
Yes. Many cash buyers, including AIRG, buy inherited homes as-is and handle the cleanout, so the family keeps what it wants and leaves the rest.
This article is for informational and educational purposes only and is not legal or tax advice. Consult a California probate attorney and a CPA about your situation.
