I just inherited a house.
What do I do now?

First: You do not have to decide anything today.

A lot of the times, inheriting a property comes with grief, and grief makes everything feel more urgent than it actually is. There are real deadlines in the process but none of them require you to make the biggest decisions in the first few days.

This guide walks through what actually happens when you inherit a property, what the real decisions are, and how to think through your options without pressure.

Step one: understand the legal situation

Before you can do anything with the property, you need to understand how it was transferred to you. There are three main scenarios:

The property was in a living trust. This is the cleanest scenario. A trust transfers property directly to the beneficiary without going through probate court. You will work with the trustee (or you may be the trustee) to retitle the property in your name. An estate attorney can walk you through this quickly.

The property transfers through a will (probate). The will must be "probated" — validated by the court — before the property can be transferred. Probate timelines vary enormously by state and county: simple estates can clear in a few months; contested or complex ones can take years. During probate, you typically cannot sell the property without court authorization.

There was no will (intestate succession). If the person died without a will, state intestate succession laws determine who inherits the property. If you are the heir, you will still go through probate. If multiple family members are involved, everyone has to agree — or the court decides.

The tax question everyone worries about

The thing most heirs worry about first is taxes, and the good news is that the tax situation on inherited property is generally more favorable than people expect.

The step-up in basis. When you inherit property, your cost basis for tax purposes "steps up" to the fair market value at the time of the original owner's death. This means if your parent bought the house for $40,000 in 1975 and it was worth $200,000 when they died, your basis is $200,000 — not $40,000. If you sell it shortly after for $205,000, you only owe capital gains tax on $5,000.

This is one of the most significant tax advantages in the US tax code, and it means that selling an inherited property soon after inheriting it often carries very little tax liability.

Estate tax. Federal estate tax only applies to estates above $12.92 million (as of 2023). The vast majority of inherited homes are not subject to federal estate tax. Some states have lower thresholds — if the estate is large, an estate attorney can advise you on the specific state rules.

Your three main options

Once the legal transfer is complete, you have three basic paths. Most people already have an intuition about which one makes sense — this is mostly about being clear-eyed rather than rushed.

Move in. If the home is in good condition and you are in a position to use it, this can be a meaningful option — particularly if it would reduce your housing costs significantly. The emotional weight of living in a parent's home is real, but so is the financial case if the numbers work.

Rent it out. Becoming a landlord is a reasonable choice if the property is in good condition, you have capacity to manage a rental (or budget to hire a property manager), and the rental market in that area is strong. The downside: it requires active management, and not every inherited property is in rental-ready condition.

Sell it. For most heirs, especially those who live in another state, whose lives are already established, or whose relationship with the inherited property is emotionally complicated, selling is the practical choice. It converts the asset to cash, closes the chapter, and lets everyone move on. The step-up in basis makes this tax-efficient, particularly if done soon after inheriting.

The complications nobody talks about

Multiple heirs. If siblings or other family members co-inherit the property, you cannot sell without everyone's agreement (or a court order). This is one of the most common sources of family conflict around estates. Having an honest conversation early — even before the estate fully settles — tends to prevent worse conflict later.

The house has belongings in it. Most inherited homes come with decades of accumulated possessions. Clearing a house is emotionally exhausting and practically demanding. For sellers who do not want to manage this, cash buyers typically buy the home with everything in it and handle the contents themselves.

The property needs work. Homes owned by elderly residents often have deferred maintenance — HVAC systems not serviced in years, older roofs, outdated electrical. The repair list can feel overwhelming. If you are not local, managing contractors remotely adds another layer of difficulty.

You are still grieving. This is real, and it affects decision-making in ways people do not always acknowledge. Heirs sometimes hold onto a property they should sell simply because selling feels like letting go. That is understandable. But it can also lead to holding costs and carrying expenses that accumulate while the decision is delayed.

There is no right timeline for grieving. But there is a difference between giving yourself space to grieve and deferring a practical decision indefinitely. Keeping a house you are not using and cannot maintain because it feels easier than deciding — that is a pattern worth noticing.

What to do first, practically speaking

• Secure the property. Change the locks, make sure utilities are on (or off if vacant), and check that the insurance is current. A vacant home can lose insurance coverage quickly.
• Talk to an estate attorney. Even a one-hour consultation clarifies the legal situation and the timeline enormously. This is not optional — it is the map.
• Continue paying property taxes and any mortgage. These do not pause for probate. Falling behind creates new problems on top of existing ones.
• Take inventory, literally and emotionally. Walk through the house. Understand what you are dealing with before you decide what to do with it.
• Do not rush major decisions. Unless there is a pressing financial deadline, give yourself time. Most inherited property situations are not as urgent as they feel in the first weeks.

Whatever you decide — whether it is moving in, renting, or selling — the right decision is the one made with clear information and a clear head. This guide is a starting point. The people who know your specific situation — an estate attorney, a financial advisor, your own family — are the ones who can help you get there.