Seller’s Desk · By Address District · · 7 min read
How Do I Sell a House I Inherited? Checking Who Can Sign, the Date-of-Death Basis and the 32 Transfer-on-Death Jurisdictions
An heir’s gain on a sale is generally measured from the house’s value on the date of death and reported as long-term, and 32 U.S. jurisdictions now allow a transfer-on-death deed that passes a house outside probate. The federal estate tax exclusion for 2026 deaths is $15 million.
- Inherited homes
- Probate
- Date-of-death basis
- Transfer-on-death deeds
- Heirs
- Older homes
Table of contents
- Key findings
- Who can sign the deed, and must the house go through probate?
- What does the date-of-death value do to the tax?
- What does the wait cost, and what should heirs agree in writing?
- How common are older houses, and what does age change for heirs?
- What does a private sale change when heirs share the decision?
- Methodology and limitations
- Conclusion
- Frequently Asked Questions
- Sources
A parent dies and leaves the house to three grown children. Two live in other states, and the closets hold forty years of coats and paperwork. Before the family can discuss price it has to establish who may sign a deed, usually a court-appointed representative or a trustee, and before it can discuss proceeds it has to know that the gain is generally measured from the value on the date of death.
This brief follows that order. It reads IRS guidance on inherited property, the Uniform Law Commission’s count of transfer-on-death jurisdictions and Address District’s own Older Home Index, works one hypothetical estate through the arithmetic, and finishes with the difference a private sale makes for heirs who live apart.
The limits are plain. Probate, trusts and deeds follow state law, and no single state’s procedure is described here. The tax rules cited are federal, state estate and inheritance taxes are not covered, and nothing here is legal or tax advice or an estimate of any house’s sale price.
Key findings
- The basis of inherited property is generally its fair market value on the date of death, or on an alternate valuation date only when the executor files an estate tax return and elects alternate valuation on it (IRS, September 2026).
- A sale of inherited property is generally reported as long-term, with “INHERITED” entered in place of the purchase date (IRS Form 8949 instructions, 2025).
- Thirty-two American jurisdictions permit a house to pass by a transfer-on-death deed (Probate and Property, September 2025).
- Of the 238 ZIP codes with at least 10 sampled homes in the index, 99 had homes built in 1980 or earlier making up half or more of the sample (Older Home Index).
Who can sign the deed, and must the house go through probate?
It depends on how the house was titled. A house that passes by will, or without one, usually goes through probate, where a court appoints a personal representative, and a title company will want the court’s letters before insuring a sale. Being named executor in a will is not the same as being appointed.
Some houses skip probate. Jane E. Sternecky, a Uniform Law Commission legislative counsel, counted 32 jurisdictions that allow transfer-on-death deeds. Under the commission’s 2009 uniform act, such a deed has no effect until the owner dies, can be revoked until then, and must be recorded where the property sits before the death.
| How the house was held | Who usually signs | Paperwork commonly asked for |
|---|---|---|
| Through probate | Court-appointed personal representative | Letters testamentary or of administration |
| In a living trust | Successor trustee | Trust papers or a certification of trust |
| Joint tenancy with survivorship | Surviving owner | A recorded death certificate |
| Transfer-on-death deed | Named beneficiary | The recorded deed and a death certificate |
Table 1. Common routes of authority to sell an inherited house. Address District summary, which varies by state and title company.
Source Jane E. Sternecky in Probate and Property, September 2025 and January 2026. Other entries summarize common practice.
What does the date-of-death value do to the tax?
It moves the starting line. The IRS says inherited property generally takes a basis equal to its value at death, and a sale above that basis produces a taxable gain. A parent’s purchase price from decades ago generally drops out, and the Form 8949 instructions generally treat the sale as long-term however soon the heirs sell.
| Line | From the parent’s purchase price | From the date-of-death value |
|---|---|---|
| Starting figure | $64,000 | $410,000 |
| Sale price | $432,000 | $432,000 |
| Gain before selling costs | $368,000 | $22,000 |
Table 2. A hypothetical inherited house. Only the second column reflects the IRS’s general rule for heirs. Arithmetic on assumed figures, not a tax calculation.
On those assumptions the date-of-death value removes $346,000 of gain, and selling costs shrink the remaining $22,000. A date-of-death appraisal documents the figure. If an executor files an estate tax return and sends heirs a Schedule A to Form 8971, an heir may have to report a basis consistent with the estate tax value. Estate tax itself reaches only large estates, with a basic exclusion of $15,000,000 for 2026 deaths, up from $13,990,000 for 2025.
The home sale exclusion is a separate rule, built on owning and occupying the house for two of five years, so an heir who never lived there does not meet it. A surviving spouse who has not remarried may count the late spouse’s time in the home and, on a sale within two years of the death, may use the $500,000 limit if other conditions are met.
Source IRS inheritance FAQ, reviewed September 29, 2026, Form 8949 instructions and Publication 523 for 2025, and IRS estate and gift tax update, July 23, 2026. Federal rules only.
What does the wait cost, and what should heirs agree in writing?
More than heirs tend to budget. The mortgage does not end at the death, and tax, insurance and utilities continue while probate runs, which can take a few months or more than a year. A sale during probate is often possible, sometimes only with court approval or notice to heirs.
At a hypothetical $2,200 a month, a nine-month probate costs $19,800 and a fifteen-month one $33,000, a difference of $4,400 for each of three heirs. A written agreement should settle who decides, the lowest acceptable price and who advances costs. Co-owners who deadlock may face a court-ordered partition sale. A buyout is often simpler. If one heir keeps the house at the Table 2 value of $410,000, each one-third share is about $136,667 before costs, so buying out two siblings runs about $273,333.
Source Address District summary of common practice. Probate timelines and partition rules differ by state. Dollar figures are hypothetical.
How common are older houses, and what does age change for heirs?
Common enough to plan for. Across the 1,192 index ZIP codes, 49.0 percent of sampled homes date from 1980 or earlier, and 37.6 percent of the full sample does, and a house a parent bought in the 1970s belongs there by definition.
| Older homes as a share of the sample | ZIP codes | Share of the 238 |
|---|---|---|
| Under 25 percent | 73 | 30.7% |
| From 25 to under 50 percent | 66 | 27.7% |
| From 50 to under 75 percent | 63 | 26.5% |
| 75 percent or more | 36 | 15.1% |
Table 3. ZIP codes where the index sampled 10 or more homes, grouped by how much of the sample predates 1981. Figures from the Address District index, October 2026.
The index counts build years, not condition. What age changes is the paperwork and the number of decisions. EPA rules require anyone selling housing built before 1978 to disclose known lead-based paint, hand over available records and allow buyers 10 days for an inspection, so heirs should look for a parent’s old reports.
Source Address District Older Home Index, 2026, and EPA real estate disclosure guidance, updated May 27, 2026.
What does a private sale change when heirs share the decision?
It removes the steps that need the most agreement. Address District buys houses directly from their owners, estates included, with the house never listed or shown, no open houses, and no repair work, staging or deep cleaning, so heirs need not agree on a contractor first. One of the team’s reviewers looks at the house and may ask to tour it, the heirs receive a written offer they are free to turn down, and the buyer is identified to the estate in writing. The estate picks a closing day weeks or months off, and the representative or trustee still signs.
There is no commission. On the hypothetical $432,000 sale, each percentage point of commission would be $4,320, and each month of carrying at $2,200 is shared among the heirs.
Listing the house publicly can bring several bidders, and heirs splitting proceeds three ways may decide a higher price is worth the months. A private sale produces one offer. The heirs decide.
Source Address District terms of purchase, with arithmetic on the hypothetical figures above. Closing costs are not included.
Methodology and limitations
Tax rules come from the four IRS sources listed below and are federal only. Transfer-on-death counts are as of late 2025 and may have changed. Build-year figures come from the index sample and count age, not condition. Probate descriptions summarize common practice, dollar figures are arithmetic on assumptions, and nothing here values a house.
Conclusion
The record supports a short sequence for heirs. Authority comes first, through a court appointment, a trust, a survivorship title or, in 32 jurisdictions, a transfer-on-death deed. An heir’s gain is generally measured from the date-of-death value and treated as long-term, while the home sale exclusion does not reach an heir who never lived there. Carrying costs run throughout, and a written agreement heads off the costliest delay.
The record does not say whether a listing or a private sale leaves a family with more. A listing can bring competition, and a private sale removes showings, repairs and commission and closes on a date the estate sets. The choice belongs to the heirs.
Frequently Asked Questions
Can the executor sell before probate closes?
Often, once the court has made the appointment. Some states require court approval or notice to heirs first.
Do heirs pay tax on the full sale price?
No. Any tax falls on the gain above the basis, which is generally the value on the date of death.
Does an heir get the $250,000 home sale exclusion?
Not by inheriting alone. The heir would need to own and live in the house for at least two years within the five before selling.
What is a transfer-on-death deed?
A recorded deed naming who receives the house at the owner’s death, outside probate. It has no effect during the owner’s life and is not available everywhere.
Sources
- IRS, Sept. 29, 2026. Gifts and inheritances. https://www.irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritances
- IRS, 2025. Instructions for Form 8949. https://www.irs.gov/instructions/i8949
- IRS, 2025. Publication 523, selling your home. https://www.irs.gov/publications/p523
- IRS, July 23, 2026. What’s new, estate and gift tax. https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax
- American Bar Association, Probate and Property, Sept. 2025. Uniform laws update, the Uniform Real Property Transfer on Death Act. https://www.americanbar.org/groups/real_property_trust_estate/resources/probate-property/2025-september-october/uniform-laws-update/
- American Bar Association, Probate and Property, Jan. 2026. Uniform laws update, 2025 legislative update. https://www.americanbar.org/groups/real_property_trust_estate/resources/probate-property/2026-january-february/uniform-laws-update-2025-legislative-update/
- EPA, May 27, 2026. Real estate disclosures about potential lead hazards. https://www.epa.gov/lead/real-estate-disclosure
- Address District, October 2026. Older Home Index. /older-home-index.html
Figures retrieved October 5, 2026. This brief is general information, not legal, tax or financial advice. Photographs are illustrative.
