What are the most common mistakes when selling an inherited house?
By Sam Yusufi, Certified Probate & Trust SpecialistUpdated
Short answer
Most come from honest assumptions: thinking a will avoids probate, assuming the house is in the trust, acting before anyone has authority, debating price before agreeing on a process, clearing out belongings too quickly, renovating without a plan, and learning about Prop 19 too late.
- Assuming a will means no probate
- A will names who inherits. The house may still need to go through probate.
- Assuming the house is in the trust
- Check the deed. Homes are sometimes never transferred in, or are taken out during a refinance.
- Acting before anyone has authority
- Being the closest relative isn't the same as having legal authority. In probate, wait until Letters are issued.
- Listing before the trustee paperwork is ready
- A successor trustee needs proof of authority in place before the home goes on the market.
- Debating price before agreeing on the process
- Settle who decides, and how, before anyone talks numbers.
- Missing someone on the notice
- If an heir doesn't receive the Notice of Proposed Action correctly, the 15-day clock can start over.
- Clearing out belongings too quickly
- Make sure the right people agree on what happens to belongings before anything is sold, donated, or thrown away.
- Renovating before there's a plan
- Know what the house is worth as it is, and what buyers care about, before spending estate money.
- Learning about Prop 19 too late
- If anyone might keep the house, talk to a CPA about property taxes before the family decides.