The Inherited Home: Decisions Families Face After a Loved One Passes

Losing a parent or family member is hard enough. Then comes the question almost no one is ready for: what do we do with the house?

Families can find themselves grieving and overwhelmed while trying to make a major financial decision. There is no perfect answer, but there are a few things every family should understand before deciding.

Here is what to consider with an inherited home:

Understand the Tax Picture. Inherited property often receives a step-up in basis, which can reduce capital gains if the home is sold. Talk with a CPA or estate attorney before making any decisions.

Know How Property Taxes Change. Under Proposition 19, California changed the rules for passing a parent's low property tax base to children. In many cases, the child must live in the home as a primary residence to keep that tax base, and there are value limits. Confirm the details with a professional.

Decide Together, Then Act. Keep, rent, or sell. Every option works for some families. The hardest situations are the ones where siblings disagree and nobody makes a decision while carrying costs pile up.

The market is fair, but it is not forgiving. An inherited home deserves a thoughtful plan, and families deserve time to make it.

Next week, I am going to share the "Back-to-School Deadline" and how families time their move around the school calendar.