Blog Series: What to Do When You Inherit a House in California, Part 1: First Steps

What are the first steps when I inherit a house in California? What should I watch out for when inheriting a house? How do I handle the title of a house in California that I inherit?

by Maya Bovshow, CEO, Trust Properties USA

Welcome to Part I in our blog series on “What to Do When You Inherit a House in California.” We’ll give you a basic guide, and for more information, please get in touch!

You’re holding the keys, maybe literally—or maybe just metaphorically. A parent, a spouse, a grandparent, or perhaps a friend or other loved one has passed away, and suddenly, there’s a house you need to deal with on behalf of yourself or your family. Maybe it’s sitting there unoccupied except for belongings, memories, and cobwebs. Or maybe a tenant is living there, or a family member, or perhaps even a squatter. Maybe the weeds are growing fast.

If you’re feeling overwhelmed, you’re not alone.

Thousands of people inherit a home in California each year. It can be a gift. It can be a burden. It’s often both. Because while it may sound simple—“You’ve inherited a house!”—the reality can be far more complicated. Questions come fast and uninvited:

• What legal steps must I take?
• Do I owe taxes?
• Should I move in, rent it, sell as-is, or invest in fixing it up for maximum value? (and is there someone like Trust Properties USA that will front the money for me?)
• What if there are other heirs? A mortgage? A mess inside?
• Are there valuables inside that need to get distributed?
• Should you hold an estate sale? Do you want to hire professionals to help with an estate sale?
• Who gets to make the decisions?

There’s paperwork to file. Emotions to manage. Deadlines to meet. Family dynamics to navigate. And under it all is a simple fact: This isn’t just property. It’s personal.

What this Blog Series Guide to Inherited Real Estate Will Cover

This guide in the form of a blog series will cover the basics of what you need to know when inheriting a house in California. But remember that there’s no substitute for working with qualified attorneys and specialist agents like those here at Trust Properties USA.

I’ll cover the fundamental legal processes, such as probate and trust resolution, as well as key financial issues, including capital gains and property taxes. I’ll also address practical questions and outline the critical decision of whether to sell as-is or make the improvements for maximum value.

I am not a lawyer, and this is not legal advice. My goal is to outline the issues so that you can properly begin your decision-making process.

Remember: This isn’t about knowing everything. It’s about knowing what matters, when it matters—and learning who you can trust to help.

Warning: “Quick Sale” Scams on Inherited Homes

Let me start with a warning:

When someone who owns real estate in California dies, it is not a private event.

All kinds of real estate companies, investors, flippers, and scam artists will know instantly. You will very likely begin getting calls, letters, even knocks on your door, possibly within days of the death. You will see the billboards for “We Buy Your House Sight Unseen,” and you may be tempted to act fast. It’s even worse if you enter probate, where even the estate’s finances may become public information.

In most cases, truly, these are ultimately bad deals. You may receive a juicy offer that gets “renegotiated” during the transaction. The true value, if the house were fixed up, can be obscured. Even worse, you may be tempted to act before all the legal issues are settled. In most cases, working with a reputable company like Trust Properties USA will greatly improve your ultimate profit if you decide to sell.

Indeed, a reputable company like Trust Properties USA does not buy properties at all—we help people sell at the maximum profit “as-is” or with a “fix-and-sell” strategy in which we front the money on your behalf. We never take any ownership, and we honestly give you our expert advice on when and how to sell, protecting the best interest of the estate.

That’s why we are so often recommended by people’s estate attorneys as they work through the issues. You can learn more about our comprehensive services here, or contact us to learn more.

What Are the First Things to Do When You Inherit a House?

Inheriting a house doesn’t come with an instruction manual—but it should. Most people don’t expect to become property owners overnight, especially during a time of grief, confusion, or family tension.

But the very first steps are crucial. You need to take them calmly and deliberately, because the decisions you make—or avoid—early on can result in months of frustration down the road.

Unfortunately, you can’t “wait until the dust settles and everyone finds their emotional equilibrium” before taking action, because lots of things have to happen right away.

First Steps Checklist for Inheriting Property in California

1.    How Do I Secure a Property I Inherit?

The very first thing you should do is make sure the home itself is protected.

• Change the locks. You may not know who has keys, especially if other family members, neighbors, or service providers have had access. Err on the side of caution.
• Inspect the property. Look for damage, leaks, broken windows, signs of vandalism, or evidence of squatters. If the property is located in another city or state, consider asking a local realtor, property manager, or trusted friend to walk through and send photos.
• Turn on (or maintain) utilities. If power, water, or gas are shut off, you will likely want them restored, especially if the home needs maintenance or is for sale. At a minimum, ensure there’s electricity and water. You don’t want a dying lawn or a dark house inviting intruders.
• Set up insurance. Homeowner’s insurance doesn’t automatically transfer. Call the insurance company and notify them of the death. Ask about coverage for vacant homes, which may need special arrangements.
• Notify neighbors. Let the immediate neighbors know what’s going on. They can be your eyes and ears while you sort through logistics.

In Summary: A vacant, unmonitored home can attract problems—everything from break-ins to burst pipes. If you contact us at Trust Properties USA for a sale, we can handle security and bring in trusted maintenance people to keep the property operating safely, with money fronted by us before the sale.

2.    Locate and Read the Will or Trust

Now it’s time to answer the big question: Who legally owns the house?

• Look for a will or living trust. These documents should name the person(s) who should inherit the house. You might find these crucial documents in a home office, a safe deposit box, with the deceased’s attorney, or on file with the county. If they exist, read them carefully. If they do not, you should contact a qualified California estate attorney immediately to advise on next steps.
• Who is the executor or successor trustee? This is the person responsible for managing the estate or trust and ensuring assets (like the home) are appropriately distributed to the beneficiaries named in the will or trust. If that’s you, don’t panic. You’re not alone, and you can get help. If it’s not you, you need to hand over the responsibility to that person as soon as possible. If you have been given the job and don’t want it, you don’t have to serve. Consult an attorney.
• Trust vs. probate? If you are a spouse or other co-owner, or if the house was titled under a revocable living trust, it may bypass probate (more on this later).
  However, if the house is titled only in the deceased’s name, it will likely go through probate court, even if there’s a will. Talk to a lawyer about this.
• What if there’s no trust or will? If a person dies intestate (without a will), California law determines who inherits the property according to a set order of relatives. This usually refers to spouses, children, or parents—but it becomes more complex with blended families or distant relatives. A judge will make this decision in probate court.
• Take control of accounts so you can maintain the property. If the situation is complex, consult an attorney.

Pro tip for heirs: Don’t take rash actions on real estate. Even if you know you’re the sole heir, don’t do anything legally significant (like selling the house) until you’ve confirmed your legal standing. Title transfer is a legal process, not just a handshake. And if you make a mistake on ownership rights, lots of problems could follow.

3.    What Are the Ownership and Mortgage Documents for an Inherited Property?

Once you’ve secured the home and located the estate documents, the next step is to get a clear picture of the property’s financial and legal status.

Here’s what you’ll want to find:

• Title or deed to the property. This indicates who the legal owner of the home is. You’ll need this to transfer title, refinance, or sell the property. If you cannot locate the title, you can look it up and get a copy online from the County Assessor in which the property is located.
• Hidden Liens or Title Problems: An important reason to run a title search immediately is to identify hidden issues like liens on the house. Possible complications include unpaid mortgages, tax liens, judgment liens, code violations, or errors in the deed. If you see issues, contact an estate attorney quickly. If you work with Trust Properties USA on a sale, we can help with these issues.
• Mortgage statements. Does the house have an outstanding mortgage? Are payments current? Is there a second mortgage or a HELOC (Home Equity Line of Credit)? Lenders will need to be notified of the owner’s death, and payments must continue if you want to avoid foreclosure.
• Insurance policies. This includes homeowners’ insurance, earthquake or fire insurance, and any umbrella liability coverage.
• Property tax bills. These can often be found through the county tax assessor’s office. You’ll want to check whether taxes are current and whether reassessment may apply (we’ll get into Prop 19 and other tax rules later).
• Utility bills and vendor accounts. Garbage, water, electricity, internet—knowing what services are active will help avoid shutoffs and reconnect fees.
• Homeowner association (HOA) documents. If the home is in a condo or planned community, there may be fees or restrictions you’ll need to be aware of.

In summary: You or your family has inherited more than a structure. You’ve inherited a legal and financial responsibility—and possibly challenges that need immediate attention. However, taking these first steps—securing the home, identifying ownership, and gathering documents—will provide the foundation you need to move forward, whether that means moving in, selling, or simply taking a deep breath and figuring it out.

Pro Tip: You may be eligible to receive compensation from the estate for your time working as a trustee or executor. Check the will or trust, and consult an attorney.

In the next blog we discuss other immediate issues like dealing with hoarding, clean-outs, evictions, foreclosure threats, distribution of property, and more.  Click here for Part 2.

Best, Maya
Maya Bovshow, CEO, Trust Properties USA

Maximizing the equity your family took a lifetime to build.

If you are dealing with a property in probate or trust, call us today at 📞 1-800-579-4380