Selling an Inherited Home in Sacramento: Probate and Trust Sales, Step by Step
A Certified Probate & Trust Specialist guides the executor or trustee through court timelines, the property and the sale.
Where do you start when you inherit a house?
Short answer: start by finding out how the house was held, because that decides who can sell it and whether a court is involved.
This is general information, not legal or tax advice. Your attorney and CPA advise on your case.
New to all of this? Start with Trusts and Probate, Made Simple. It explains what a trust is, how it helps and the words you will hear, in the simplest terms.
If you're an executor, a successor trustee or the son or daughter who got the phone call, you're probably holding a set of keys and a lot of questions. If your first thought is "I don't know where to start," this page is for you. It goes in the order things tend to happen, with the rules behind each step and where they come from.
At Surroundings, Maggie B. Hopkins is a Certified Probate & Trust Specialist. She's a licensed real estate broker and a mortgage broker, licensed in real estate since 2006. We handle the house, the sale and the updates to heirs. Your attorney handles the court and the legal questions. Do you want the steps on one page? Download the Inherited Home Checklist.
Get the Inherited Home Checklist
What are the steps in a probate home sale?
Short answer: confirm who can sign, plan with the attorney, price and prepare the house, sell it, then finish the notice or court step and close.
Here is the whole sale on one page. The details for each step are further down.
- Confirm who can sell. In probate, the court appoints the personal representative and issues Letters. In a trust, the successor trustee signs. No one can sign a listing or a contract before that.
- Plan with the attorney. Find out whether the sale has full authority or needs court confirmation, and which notices, deadlines and signatures apply.
- Value the house. We walk it, look at its condition and the recent sales nearby, and give you a price range. On a court sale, the probate referee's appraisal matters too.
- Prepare the home. Family takes what they want first. Then the cleanout, the repairs worth making, safety fixes, staging and photos.
- List and market it. The home goes live with buyers and agents who understand probate and trust sales.
- Review and accept an offer. We compare the net to the estate, the terms, the deposit and the strength of the buyer's loan, not just the price.
- Finish the notice or court step. With full authority, heirs get a Notice of Proposed Action at least 15 days ahead. With court confirmation, a judge approves the sale at a hearing where other buyers can bid higher.
- Close escrow. Title, signatures and funds are handled, ownership transfers, and the attorney reports the sale to the court or the heirs.
Every estate is different, and courts set their own calendars. Your attorney confirms the steps for your case.
Is it probate, a trust or neither?
Short answer: a home titled in a living trust usually passes through the trust with no court, a home in the person's own name usually goes through probate, and some smaller estates qualify for a shortcut.
- Trust. Look at the deed. If it names someone "as trustee" of a trust, the successor trustee named in the trust usually handles the sale without a probate case.
- Probate. If the deed is in the person's own name and nothing else moves it, the estate usually goes through the superior court in the county where the person lived. Probate Code section 7051 sets that county as the proper place for the case.
- Passing to a spouse. A surviving spouse can ask the court to confirm that property passes to them under Probate Code section 13650, known as a spousal property petition. That section sets no dollar cap.
- Other title forms. Joint tenancy with a living co-owner and a recorded transfer on death deed can move a home outside both probate and a trust. Your title officer and attorney confirm which one applies.
The small estate limits
California sets dollar limits for skipping full probate. The Judicial Council's form DE-300 on courts.ca.gov (revised April 28, 2025) lists these limits for deaths on or after April 1, 2025:
- $208,850. This is the gross California property limit for the small estate affidavit under Probate Code sections 13100 and 13101. It counts real and personal property together. A house counts toward it unless it goes through the primary residence petition below.
- $750,000. This is the gross limit for the decedent's primary residence under the petition to determine succession, Probate Code sections 13151 to 13154. This is a court petition, but a much shorter one than full probate. The limit was $184,500 for deaths from April 1, 2022 through March 31, 2025.
- $69,625. This is the gross limit for all California real property under the small value real property affidavit, Probate Code section 13200.
The same form says these figures are next adjusted on April 1, 2028. Your attorney decides whether the estate qualifies, since the counting rules have exclusions.
Who has the right to sell an inherited house?
Short answer: in probate it's the personal representative once the court issues Letters, and in a trust it's the successor trustee named in the trust document.
In probate
The court appoints a personal representative. That's the executor named in a will, or an administrator when there's no will or no executor who can serve. Probate Code section 8400 says a person has no power to administer the estate until appointed, and the appointment takes effect when the court issues letters. Letters testamentary go to an executor. Letters of administration go to an administrator.
So before Letters are issued, no one can sign a listing agreement or a purchase contract for the estate. We can still walk the house, give you a price range and plan the prep work while you wait.
In a trust
The successor trustee signs as seller under the powers the trust gives them. Title and escrow will usually ask for a certification of trust instead of the whole document. Probate Code section 18100.5 requires it to be an acknowledged (notarized) declaration signed by all currently acting trustees. It can confirm the trust exists, who the trustees are and what powers they hold. It doesn't have to show who inherits what.
If there are co-trustees, the trust says whether one can sign alone or all must sign. Read that part early, because it affects every document in escrow.
How does a court-confirmed probate sale work, step by step?
Short answer: the estate accepts an offer subject to court confirmation, the court sets a hearing, and at that hearing other buyers can outbid the accepted offer by a set formula.
Probate Code section 10308 says that, outside full authority sales, all sales of estate real property must be reported to and confirmed by the court. Here's the order.
- Appraisal by the probate referee. The personal representative files an inventory and appraisal within four months after Letters are first issued, under Probate Code section 8800. Under section 8902, the court-appointed probate referee appraises the property the representative doesn't, which includes real estate.
- The 90 percent rule. Probate Code section 10309 says the court can confirm a private sale only if the offer is at least 90 percent of the appraised figure. The appraisal must have been made within one year before the hearing. If the market moved, the court can order a new appraisal.
- Published notice of sale. Under Probate Code section 10300, the estate publishes a notice of sale in a newspaper in the county where the house sits. That publication has to be complete by the date in the notice on or after which the sale may happen. Section 10303 lets a sale skip this notice when the will directs or authorizes the sale.
- Marketing and an accepted offer. The house is listed and shown like any other. The accepted offer is subject to court confirmation, and the buyer knows they may be outbid.
- Petition and hearing date. The attorney files a petition to confirm the sale and the court sets a hearing. Section 10308(b) lets the buyer file it if the estate doesn't within 30 days after the sale. Notice of the hearing goes out as the code requires.
- The hearing and any overbids. The judge calls the case. Anyone who wants to outbid the accepted offer makes an offer in court. Bidding goes up in amounts the court sets.
- Order confirming sale, then escrow closes. Once the court signs the order, escrow can close with the confirmed buyer.
The overbid formula, with a worked example
Probate Code section 10311 says the first overbid must be at least 10 percent more on the first $10,000 of the accepted offer, plus 5 percent more on the rest. The bidder must be a responsible person and the offer has to comply with the law. Commissions don't count when comparing bids.
Say the estate accepted $500,000.
- 10 percent of the first $10,000 is $1,000.
- 5 percent of the remaining $490,000 is $24,500.
- The minimum first overbid is $500,000 + $1,000 + $24,500 = $525,500.
After that, the judge sets how much each later bid has to go up. The original buyer can bid too. Section 10311 also lets the court decline a qualifying offer, though it then has to order a new sale.
Deposits for overbidders
Plan on bringing a deposit to the hearing if you intend to bid. The amount and form come from that county's local rules and the judge's practice. Your attorney or the buyer's agent confirms them before the hearing.
How long it takes
Courts set their own calendars, so we never promise a date. The hearing date the court gives you is the real timeline, and escrow is built around it. Buyers on a court-confirmed sale need to be ready to wait.
How is a trust sale different?
Short answer: a trust sale has no court hearing and no overbid, but the trustee has duties to the beneficiaries and a notice to send within 60 days.
A successor trustee manages the house for the beneficiaries. That means keeping it insured and maintained, getting a fair price and keeping good records. Your trust attorney walks you through the specific duties in your trust.
The 60-day notice under Probate Code section 16061.7
When a revocable trust becomes irrevocable because the person who made it died, the trustee has to notify each beneficiary and each heir. Section 16061.7 sets the deadline at no later than 60 days after the death. If there's a change of trustee, a new notice is due.
That notice has to carry a warning in bold type. It says a person may not bring an action to contest the trust more than 120 days after the notice is served, or 60 days after a copy of the trust terms is delivered during that 120-day period, whichever is later. Ask your attorney whether to list or close the sale before that window ends.
Typical timeline
With no court calendar, a trust sale can follow a regular listing and escrow schedule once the trustee has what title needs. That's the certification of trust, the death certificate and anything title asks for on its preliminary report. Repairs and cleanout are usually what set the pace.
Disclosures in estate and trust sales
Civil Code section 1102.2(d) exempts sales by a fiduciary in the course of administering a trust or a decedent's estate from the standard Transfer Disclosure Statement. There's an exception for a trustee of a revocable trust who is a former owner, or who lived in the home within the past year. Ask your attorney what the estate still needs to disclose.
What should you do with the house in the first 30 days?
Short answer: lock it, insure it, keep the utilities on and leave the belongings where they are until the estate's authority is clear.
- Secure it. Change or rekey the locks and collect every spare key you can find. Make a list of who has one.
- Call the insurance carrier. Tell them the owner has passed and the home is empty. Ask in writing whether the policy still covers a vacant home. If it doesn't, ask about a vacant dwelling policy.
- Keep the utilities on. Power, water and gas protect the house and let an appraiser, inspector and buyer see it working. Move the bills into the estate or trust's name once you have authority.
- Forward the mail. Mail tells you about mortgages, reverse mortgages, insurance, property tax and open accounts. The executor or trustee can work with the post office to redirect it.
- Take photos. Walk every room and the yard before anything moves. It protects you if an heir asks later what was there.
- Don't clear it out yet. Deeds, wills, trust papers and loan statements are often in a drawer. Heirs may want specific items. Selling or donating belongings before authority is clear can cause problems with the estate and other heirs.
- Find the loan. If there's a mortgage or a reverse mortgage, contact the servicer early. Reverse mortgages have their own deadlines, covered below.
What taxes come with an inherited house?
Short answer: the big ones are the income tax basis, the property tax reassessment and the transfer tax at sale, and your CPA should run the numbers before you decide anything.
Step-up in basis (income tax)
IRS Publication 551 says the basis of inherited property is generally its fair market price on the date of death. If the personal representative elects alternate valuation, it's the figure on that later date instead. In plain words, the gain on a sale is usually measured from what the house was worth when your parent died, not from what they paid.
Example, for illustration only: a parent paid $90,000 decades ago and the home was worth $600,000 on the date of death. If the estate sells for $610,000, the gain starts from $600,000, before costs of sale. Ask your CPA how this applies to your case, including any rules for a surviving spouse.
Property tax reassessment and Prop 19
The Board of Equalization says a change in ownership is reassessed to current market price as of the date ownership changed. A death is a change in ownership unless an exclusion applies. Transfers to a surviving spouse are excluded.
The BOE's Proposition 19 page explains the parent-child exclusion for transfers on or after February 16, 2021:
- The home must have been the parent's principal residence and must become the child's principal residence. Rental homes don't qualify.
- The child has to file for the homeowners' exemption within one year of the transfer.
- The exclusion claim is form BOE-19-P. It's due within three years of the date of death or before a transfer to a third party, whichever comes first.
- The parent's factored base year figure carries over, plus an adjusted $1,000,000. That amount is $1,044,586 for transfers from February 16, 2025 through February 15, 2027. Market price above the limit is added to the tax base.
If the plan is to sell, the exclusion usually doesn't help. If a child plans to move in, it can change the math a lot. Our Prop 19 in Sacramento page walks through it, and the Sacramento property tax calculator gives a rough yearly bill.
Change in ownership statement
Revenue and Taxation Code section 480(b) sets the deadline to tell the assessor about the death. For property in probate, the personal representative files before or with the inventory and appraisal. For other transfers at death, including trusts, the trustee or the person inheriting files within 150 days of the death.
Supplemental property tax bills
The BOE says a change in ownership triggers a supplemental assessment, effective the first day of the next month and prorated through June 30. It's a separate bill from the regular one. The estate may see one tied to the death, and your buyer gets their own after the sale.
Documentary transfer tax
Revenue and Taxation Code section 11911 lets a county charge $0.55 for each $500 of the price. Sacramento County's Clerk-Recorder lists that rate. That works out to $1.10 per $1,000, or $660 on a $600,000 sale. The same office notes that the City of Sacramento charges its own separate transfer tax. Its page also says buyer and seller decide who pays by agreement. In Placer, El Dorado and Yolo counties, escrow confirms the figure for your sale. We show it on your estimated net sheet.
Should you keep it, rent it, buy out a sibling or sell?
Short answer: each path works for some estates. The right one depends on the house, the taxes, what the heirs can afford and whether everyone agrees.
- Keep it. This works best when one heir will live there and the Prop 19 exclusion applies. Someone has to cover the loan, insurance, taxes and upkeep while the estate settles.
- Rent it. Rental homes don't get the Prop 19 exclusion, so expect reassessment. Someone has to be the landlord. Inherited homes often need work before a tenant can move in.
- Buy out a sibling. One heir buys the others' shares. That usually means a loan, a price everyone accepts and attorney help with the paperwork. If the buyer is the executor, plan for court supervision under Probate Code section 10501(a).
- Sell. Everyone gets their share in cash, and no one carries the house.
When an heir wants to buy the house
An heir buying from the estate still needs financing like any buyer. As a mortgage broker, Maggie shops loans across a network of approved lenders, so you compare real options instead of taking one bank's offer. That includes a purchase loan or a refinance if the heir already holds title. Give yourself options. You're free to use any lender you like. Call Maggie directly about the loan at (916) 549-3131. Approval depends on the borrower and the property, and nothing here is a promise of terms.
We price the house from real comparable sales either way. When one sibling is buying from the others, a fair price protects everyone.
What if the house has a reverse mortgage?
Short answer: the loan comes due, the heirs have 30 days after the servicer's notice to say what they'll do, and they may get up to six months to sell or refinance.
The Consumer Financial Protection Bureau's page on reverse mortgages and heirs (last reviewed August 28, 2026) lays out the rules for heirs when there's no surviving co-borrower or eligible non-borrowing spouse:
- After the heirs receive a due and payable notice, they have 30 days to buy, sell or turn the home over to the lender to settle the debt.
- The timeline may be extended up to six months so heirs can sell or arrange their own financing.
- To keep the home, heirs pay off the loan balance.
- To sell when the balance is more than the home is worth, the heirs repay the full balance or sell for at least 95 percent of the appraised figure.
Send the servicer the death certificate and ask for the deadlines in writing. Then get a market price early, because six months goes fast when the estate hasn't opened yet. Our reverse mortgage page explains how these loans work. Maggie can explain your loan options at (916) 549-3131.
How do you prepare and sell a dated home?
Short answer: you can sell it in its current condition, make a few repairs that pay for themselves or compare cash offers, and we'll show you the likely net for each before you choose.
Inherited homes often have original kitchens, older roofs and years of deferred maintenance. The question is which path leaves the estate with the most after costs and time.
- Current condition, open market. Clean it, clear it and price it for the work it needs. Buyers who want to remodel look for these homes.
- Light repairs. Paint, flooring, yard cleanup and obvious safety fixes can widen the buyer pool. We tell you which repairs we expect to return more than they cost, and which to skip.
- Cash buyers. Some estates want certainty over top price, especially with a reverse mortgage deadline or a home that won't qualify for a loan. We can compare offers from our cash-buyer network against an open-market estimate, side by side.
Estate sales, donations and the cleanout
Once the estate can act, belongings usually go out in this order:
- Items heirs want to keep.
- An estate sale for things with resale interest.
- Donations.
- Hauling for the rest.
Our Sacramento giving map lists places to donate furniture, clothing and household goods. We can coordinate the cleanout and repair crews, so an out-of-town heir isn't managing five vendors from a distance.
Why are investors sending letters, and how do you compare offers?
Short answer: probate filings are public, so some buyers mail offers to estates, and you compare them by what the estate nets and how likely they are to close.
Get a real market price before you answer any letter. Then compare every offer, from a letter or the open market, on the same terms:
- Net to the estate. This is the price minus the closing costs, transfer tax, repairs and commission the estate pays.
- Proof of funds. Ask for a bank or lender letter, not a promise.
- Contingencies. Check the inspection, appraisal and loan contingencies, and how many days each lasts.
- Assignment. Some contracts let the buyer sell the contract to someone else. Know if yours does.
- Court fit. On a court-confirmed sale, the buyer has to accept the hearing and the chance of being outbid.
A lower cash offer can be the right choice. The estate should choose it with the numbers in front of them, not because a letter arrived first.
What if the heirs live out of state or don't agree?
Short answer: give every heir the same updates in writing at the same time, so no one feels left out and fewer objections turn into court hearings.
"How do you manage everything if I live out of town?" is one of the first questions out-of-town heirs ask. Here's how we run it:
- One written update goes to the executor or trustee at each step, and with their okay to every heir.
- We send photos and video of the house, the work and the showings, so heirs far away see what we see.
- We share the price range, the comparable sales and every offer the same way with everyone the executor or trustee authorizes.
- We use electronic signing for documents that allow it.
When siblings disagree, it's usually about price, timing or one person wanting the house. Data helps. So does knowing that under full authority, one written objection sends the sale to court under Probate Code section 10589. Legal disputes between heirs belong with the attorney. We keep the house ready and the information clear while they work it out.
Which superior court handles probate in each county?
Short answer: the case goes to the superior court in the county where the person lived, even if the house is in a different county.
- Sacramento County: Superior Court of California, County of Sacramento. See probate and trust sales in Sacramento County.
- Placer County: Superior Court of California, County of Placer. See probate and trust sales in Placer County.
- El Dorado County: Superior Court of California, County of El Dorado. See probate and trust sales in El Dorado County.
- Yolo County: Superior Court of California, County of Yolo. See probate and trust sales in Yolo County.
Your attorney files the case and tracks the court's calendar. Each court posts its own local rules, which can affect things like overbid deposits.
Probate and trust sales by city
Sacramento · Elk Grove · Carmichael · Fair Oaks · Roseville · Rocklin · Lincoln · El Dorado Hills · Davis
How does Surroundings run a probate or trust sale?
Short answer: we handle the house and the sale from first walk-through to closing, and we work alongside your attorney, never in place of one.
- First call. You tell us where the estate stands: probate or trust, Letters or not, who the heirs are and any loan on the house.
- Walk-through and price range. We see the house and give a price range from real comparable sales, before you fix anything.
- Plan with the attorney. We line up our steps with the attorney's. That covers full authority or court confirmation, the Notice of Proposed Action and any hearing.
- Prep. We coordinate the cleanout, estate sale and donations. Then come the repairs worth doing.
- Listing and marketing. We handle photos, the listing and showings. On a court sale, every buyer knows about the hearing and the overbid process up front.
- Offers. We lay out every offer side by side, with the estimated net to the estate.
- Escrow and closing. We work with escrow, title and the attorney until it closes.
- Updates throughout. We send written updates to the executor or trustee, and to heirs with their okay.
Legal questions go to your attorney, and tax questions go to your CPA. Attorneys and CPAs who want a real estate partner for their clients can start at our page for professionals. This describes our general process and is not legal, tax or lending advice.
Ready to talk about an inherited home?
Short answer: you don't need every answer before you call.
Tell us where things stand and we'll explain what comes next on the real estate side. Call or text Maggie at (916) 549-3131 or book a call about an inherited home. Do you want to start on your own first? Download the Inherited Home Checklist. It puts the first 30 days and the probate or trust path in order. It also covers whether to keep, rent or sell.
If the house needs work and nobody wants to manage it, see selling without repairs or Turnkey Home Prep, where we coordinate the cleanout, repairs and staging for you.
Loans are arranged by Maggie B. Hopkins, NMLS #349517, at Surroundings · DRE #02220140 · NMLS #2528307. All loans are subject to credit approval and underwriting, and this page is not a commitment to lend.
Frequently Asked Questions
Can a house be sold while it's in probate?
Yes. Once the court issues Letters, the personal representative can sell. With full authority, heirs get a Notice of Proposed Action at least 15 days ahead under Probate Code section 10586. With limited authority, a judge confirms the sale at a hearing where others can overbid.
What is probate in California?
Probate is the court process for settling an estate when assets aren't held in a trust or passed another way. The court appoints a personal representative who manages property, pays debts and distributes what's left under the will or state law.
Does a house in a living trust go through probate?
Usually not. The successor trustee named in the trust sells under the trust's terms with no court hearing. Title will ask for a certification of trust, and the trustee owes beneficiaries and heirs a notice within 60 days under Probate Code section 16061.7.
What is the small estate limit in California?
For deaths on or after April 1, 2025, the Judicial Council's form DE-300 lists $208,850 for the small estate affidavit and $750,000 for a primary residence petition. It lists $69,625 for the small value real property affidavit. Your attorney decides whether an estate qualifies.
How is the probate overbid amount calculated?
Under Probate Code section 10311, the first overbid must add 10 percent of the first $10,000 plus 5 percent of the rest. On a $500,000 accepted offer, that's $1,000 plus $24,500, so the minimum first overbid is $525,500. The judge sets later increments.
Does a probate offer have to be at least 90 percent of the appraisal?
On a court-confirmed sale, yes. Probate Code section 10309 requires at least 90 percent of an appraisal made within one year of the hearing. Under full authority, section 10503 says the 90 percent rule doesn't apply.
Can an heir buy the house from the estate?
Yes, at a fair price and with financing like any buyer. If the heir is the executor or administrator, Probate Code section 10501(a) requires court supervision for the sale. Maggie can shop the loan across a network of approved lenders at (916) 549-3131, or the heir can use any lender.
Do I pay capital gains tax on an inherited house?
Often you pay less than people expect. IRS Publication 551 says inherited property's basis is generally its fair market price on the date of death, so gain is measured from there. Your CPA should run your numbers before you sell.
Can I keep my parent's property tax base under Prop 19?
You can only if the home was your parent's principal residence and becomes yours. You file for the homeowners' exemption within one year. The BOE lists the added limit as $1,044,586 for transfers from Feb. 16, 2025 through Feb. 15, 2027. Rentals don't qualify.
What happens to a reverse mortgage when the owner dies?
The loan comes due. The CFPB says heirs have 30 days after the due and payable notice to buy, sell or turn the home over, with possible extensions up to six months. If the balance exceeds the home's worth, selling for at least 95 percent of the appraised figure settles it.
Should we clear out the house before listing?
Not right away. Papers like a will, trust or loan statement are often in the house, and heirs may want specific items. Secure and insure it first, then plan the cleanout once the executor or trustee has authority to act.
What costs come out of the estate when a probate house sells?
Usually the commission, escrow and title fees, county transfer tax, the probate referee's appraisal fee, and the attorney's and personal representative's fees, which California sets by law. Add cleanout, repairs, insurance and utilities while the house sits. Most of these are paid from the sale at closing. Your attorney confirms the fees for your estate.
How long does it take to sell a probate house?
It depends on the path. Once Letters are issued, a full authority sale can move much like a regular sale, plus the 15-day notice period. A court-confirmed sale waits for a hearing date, which each county court sets. A trust sale has no court step at all. We never promise a date; we build the plan around the real one.
Do I need an attorney to sell a probate property?
Most personal representatives work with a probate attorney, and we recommend it. The attorney handles court filings and legal questions. We handle pricing, preparation, marketing and escrow. We coordinate with your attorney throughout.
Tell us about the house.
We will tell you what comes next on the real estate side, and who to talk to for the rest.
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