Inherited a House in California? Here's How to Think Through Your Options

Inheriting a home is rarely just about a house. There's the tax question, the paperwork, sometimes siblings, and a timeline you didn't choose. This page lays out what actually matters for an inherited California property — in plain English, with no pressure to do anything. I'm David — one local buyer and advisor here on the SF Peninsula.

First, the tax clock — Proposition 19

Since February 16, 2021, inheriting a parent's home in California triggers a property-tax reassessment in most cases. You can keep part of the lower basis only if the home was your parent's primary residence and you make it your own primary residence within one year — and even then the protection is capped (currently $1,044,586, adjusted every two years). If you keep it as a rental or second home, it's reassessed to full market value.

The fastest way to see what this means for your specific property is to run the numbers: try the Prop 19 calculator with your parent's assessed value and the home's current market value. It's an estimate, not tax advice — but it's the part most people have to guess at.

Your four real options as an heir

There's rarely one right answer — it depends on your family, your timeline, and what you want the property to do for you:

• Move in as your primary residence to preserve much of the original tax basis. Mind the one-year window — the timing and paperwork matter.
• Keep and rent it. The reassessment applies, but rental income may offset some or all of the higher tax. It also means being a landlord — tenants, upkeep, management.
• Sort out shared ownership among heirs. When several people inherit together, the decision is often about aligning everyone before friction sets in.
• Sell on your own timeline. Selling ends the ongoing tax question and frees up the value — and how you sell shapes the outcome.

When several of you inherit together

Shared inheritances are where most of the friction lives. Usually it comes down to one of three paths: staying co-owners, one sibling buying out the others, or selling and splitting the proceeds. How title is held — a trust, a will, joint ownership — shapes what's actually possible, so a short conversation with an estate attorney early on tends to save a lot of strain later. Getting the structure right at the start is far easier than untangling it after a disagreement.

Do you have to sell?

No. Some families keep the home for a generation; others decide selling is the cleanest path. If you do sell, you still have choices in how — list it on the open market with an agent for the highest gross price, or sell it directly and as-is to a local buyer if certainty and simplicity matter more than squeezing out the last dollar. Neither is automatically right. The point is to choose on your terms, not under pressure.

Where I fit in

I've already run the property-tax math most people have to guess at, and I know the Peninsula market and the Prop 19 timing details. I can be your single point of contact to the right specialists — a CPA for exact numbers, an attorney for title and probate questions, an agent if you decide to list. If a direct, as-is sale turns out to be the right fit, I buy homes here myself. No pressure, no quick-cash pitch — just a clear picture of your choices. If you're weighing a direct sale, that's where we'd start.

Frequently asked questions

What's the first thing I should do after inheriting a house in California?
Three things, roughly in order: confirm how the property is held (a trust and probate are handled differently — an estate attorney can tell you which applies to you), understand the Prop 19 property-tax impact so you're not surprised, and only then decide on a timeline. There's rarely a rush. This is general information, not legal advice.

Will my property taxes go up on an inherited California home?
In most cases under Prop 19, yes — inheriting triggers a reassessment unless the home was your parent's primary residence and you make it your own primary residence within one year, and even then the protection is capped (currently $1,044,586). You can estimate your specific numbers with the Prop 19 calculator. Not tax advice; confirm with a CPA.

Can I sell an inherited house if my siblings and I own it together?
Generally all owners on title need to agree to a sale. Often one heir buys out the others, or everyone agrees to sell and split the proceeds. How title is held shapes what's possible, so an attorney is worth a short conversation before you commit to a path.

Do I have to go through probate before selling?
It depends on how the home was held. Property in a living trust often avoids probate; property that passes by will or intestacy may go through it. An estate attorney can tell you which applies and what has to happen before a sale. This is general information, not legal advice.

Do I have to sell the house to you?
No. The guidance and the Prop 19 estimate are free and there's no obligation. Plenty of people just want a clear picture of their choices before they decide anything.

Estimate and general information only. Not legal or tax advice. Consult a CPA or attorney for guidance specific to your situation.

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