So You've Inherited a House. Congratulations! (I Think.)
Inheriting a home from a loved one is a meaningful gift — and also, if I’m being honest, a to-do list that arrives at the worst possible time. Between the grief and the paperwork, most people aren’t prepared for what actually comes next. Here’s what no one tells you.
The House Has Opinions About Your Timeline – That slow drip under the bathroom sink? It has been patient for years. The moment the estate is opened, it will become a waterfall. Inherited homes have a mysterious tendency to reveal deferred maintenance right when you have zero bandwidth to deal with it. Budget for surprises: a common rule of thumb is 1–2% of a home’s value per year for maintenance, and an inherited home may come pre-loaded with several years’ worth of skipped repairs.
You May Owe Taxes — But Probably Not the Ones You’re Worried About – Most people panic about inheritance tax. In reality, only a handful of states levy one, and federal estate tax only kicks in on estates worth over $13 million (as of 2025). What does affect you is capital gains tax if you sell. The good news: inherited property typically receives a stepped-up cost basis, meaning its value resets to fair market value at the time of death — which can significantly reduce what you owe if you sell. Get a formal appraisal done quickly; you’ll need it.
The Utilities Are Still Running (And You’re On the Hook) – Electricity, gas, water, insurance — the bills don’t pause for estate proceedings. Contact utility providers and the homeowner’s insurance company immediately. Standard homeowner’s policies often won’t cover a vacant property for more than 30–60 days, so you may need a specialized vacant home policy while things get sorted out.
The Contents Are an Entire Separate Project – The house comes with everything in it. Every junk drawer. Every mystery key. Every piece of furniture your relative swore was an antique (some of it might actually be). Before selling or donating, consider hiring an estate sale company or appraiser — items that look unremarkable can occasionally be worth real money, and items that look priceless are usually worth $12 on Facebook Marketplace.
Siblings and Co-Heirs Complicate Everything – Inheriting a home with other people is like a group project where the stakes are someone’s childhood bedroom and decades of family history. If you co-inherit, all parties typically must agree on whether to keep, rent, or sell the property. If you can’t agree, a court can force a sale through a legal process called a partition action — which is expensive, slow, and ruins holidays. Talk early, be direct, and consider a mediator before it gets to that.
You Don’t Have to Keep It – There’s often an unspoken expectation to hold on to a family home out of sentiment. But keeping a property you can’t afford to maintain or don’t want to manage is a financial burden, not an honor. Selling, renting, or even disclaiming an inheritance (yes, you can legally refuse it) are all valid options. Grief is complicated enough without adding a leaky roof to it.
And if the house wasn’t in a Trust – buckle up and get ready for the probate process….
Inheriting a house is a process that rewards patience, organization, and a good estate attorney. Get professional advice early, document everything, and give yourself permission to make the decision that makes sense for your life — not the one that feels most like a Hallmark movie. If you need it, I’m here to help.
