Inheriting a house in California can bring up a mix of emotions—gratitude, grief, stress, and uncertainty. And when that inheritance is shared with siblings, things can get complicated quickly. Even families that usually get along can find themselves overwhelmed by legal steps, financial decisions, and differing opinions about what to do next.
This 2025 guide walks through exactly how selling an inherited house with siblings works in California, including legal requirements, tax considerations, common disagreements, and the best ways families successfully move forward.
Why Selling an Inherited House With Siblings Is So Challenging
Selling a home is already one of the biggest financial decisions most people make. When siblings inherit a property together, there are a few added layers:
- Everyone has a legal stake in the property
- All owners must typically agree to sell
- The home may need to go through probate
- Emotional attachment can cloud decision-making
We’ve seen many families assume selling will be straightforward—only to realize weeks later that nothing can move forward until ownership is legally settled and everyone is on the same page.
Step 1: Confirm How Ownership Transfers in California
Before a house can be sold, heirs must have the legal authority to sell it.
Does the property need to go through probate?
In California, a home usually goes through probate process unless:
- It was held in a living trust
- It was owned in joint tenancy with right of survivorship
- It qualifies for a simplified probate process
Probate can take several months, sometimes longer, and the court must approve the sale if the property is still in probate.
Example:
Three siblings inherited their father’s home in Riverside. Because the house was not in a trust, probate took nearly nine months. Once probate closed, they were finally able to sell—but planning ahead helped them avoid surprises.
Step 2: Decide as a Family What to Do With the House
Once ownership is confirmed, siblings must decide how to move forward. This is often the most difficult step.
Common options include:
- Selling the house and splitting proceeds
- One sibling buying out the others
- Keeping the house as a rental
- Letting one sibling live in the home
Every sibling doesn’t need to love the decision—but everyone does need to agree.
What if siblings disagree?
If one sibling wants to sell and another refuses, the situation can escalate into a legal process called a partition action, where a court can force the sale of the property. While sometimes necessary, this route is expensive and emotionally draining—most families prefer to avoid it if possible.
Example:
A family in San Bernardino struggled when one sibling wanted to keep the house for sentimental reasons while the others wanted to sell. After seeing the maintenance costs and property taxes, they agreed to sell and divide the proceeds fairly.
Step 3: Understand the Tax Benefits of Inheriting a Home
One of the biggest misconceptions about inherited property is taxes. Fortunately, California heirs often receive major tax advantages.
Step-Up in Basis
When you inherit a property, the tax basis is typically “stepped up” to the home’s fair market value on the date of death.
This means:
- You are not taxed on decades of appreciation
- Capital gains may be minimal if the home is sold soon
The IRS explains capital gains on inherited property further in its guidance on basis of inherited assets.
Example:
A home purchased in the 1980s for $150,000 was worth $950,000 when the owner passed. When the siblings sold it shortly after inheriting, they owed little to no capital gains tax.
No California Inheritance Tax
California does not have a state inheritance tax. While federal capital gains tax can apply, the inheritance itself is not taxed by the state.
Property Taxes and Proposition 19
Under California Proposition 19, heirs may be able to keep the lower property tax base only if:
- One of the heirs moves into the property as a primary residence
- The required forms are filed on time
- The property meets eligibility thresholds set by the county assessor
If these conditions are not met, the home is typically reassessed at current market value, which can significantly increase annual property taxes. The California Board of Equalization outlines these rules in its official Proposition 19 guidance.
Step 4: Address Mortgages, Liens, and Property Condition
Outstanding Mortgages
If the inherited home has a mortgage:
- Payments must continue
- The loan can be paid off at sale
- Heirs are generally allowed time to sell
Reverse mortgages often require faster action, as lenders usually expect repayment shortly after the homeowner’s death.
Condition of the Home
Many inherited homes haven’t been updated in years. Siblings must decide whether to:
- Make repairs and list traditionally
- Sell as-is without fixing anything
Example:
Four siblings inherited a fixer-upper in Los Angeles with outdated wiring and plumbing issues. Rather than spending months coordinating repairs, they chose to sell as-is and close quickly.
Step 5: Choose the Best Way to Sell
Option 1: List With a Real Estate Agent
Best for homes in good condition or in strong markets.
Pros
- Maximum exposure to buyers through the MLS
- Competitive pricing based on market demand
Cons
- Repairs or updates may be needed to attract top offers
- Longer timeline due to showings and buyer financing
- Commissions and closing costs
The California Association of Realtors outlines how traditional listings work and why homes in good condition often perform best on the open market.
Option 2: Sell As-Is to a Cash Buyer
Best for homes needing repairs or families wanting simplicity.
Pros
- No repairs
- Fast closing
- Minimal stress
Cons
- Lower sale price than retail
Option 3: One Sibling Buys Out the Others
Often the cleanest option when one sibling wants to keep the property.
Example:
A sibling in Ventura wanted to keep the family home. An appraisal was ordered, and she refinanced to buy out her brothers—allowing everyone to move forward without conflict.
A Simple Timeline for Selling an Inherited House With Siblings
- Confirm legal ownership
- Get a professional appraisal
- Meet and agree on a plan
- Address debts and property condition
- Choose a selling method
- Close and distribute proceeds
Frequently Asked Questions (FAQs)
What happens if only some siblings want to sell the inherited house and others don’t?
When siblings disagree about selling, it can complicate or delay the process, but there are strategies — including buyouts, mediation, or legal solutions — that can help. For a full look at your options when siblings don’t want to sell, check out our guide on Siblings Don’t Want to Sell Inherited House in California.
How Mrs. Property Solutions Helps Families Across California
Selling an inherited house with siblings doesn’t have to be stressful or divisive. At Mrs. Property Solutions, we help families navigate these situations with clarity, compassion, and practical solutions.
Whether you need:
- A fast, as-is sale
- Help coordinating between siblings
- Guidance on next steps
We’re here to help—even if selling to us isn’t the right fit. Our goal is to give families trustworthy information and real options so they can move forward confidently.