If you’ve recently inherited a house and are wondering, “Can I sell this property?” The answer is simple—absolutely! Since you’ve legally inherited the property, you have every right to sell it. However, before you start the process, there are a few key things to keep in mind.
Was There a Will?
The first question you need to ask yourself is whether there was a will. If there was, and the will clearly states that the property goes to you, that’s great! But has the will been probated?
What Does Probate Mean?
Probate is the legal process where a judge reviews the will to ensure it’s legitimate. If a judge has signed off on it, confirming you as the rightful heir, it makes selling the property much easier.
What If There Wasn’t a Will or It Hasn’t Been Probated?
If there wasn’t a will, or if the will hasn’t gone through probate, don’t worry—you still have options. One of the more common solutions in these cases is to get an affidavit of heirship.
What’s an Affidavit of Heirship?
An affidavit of heirship is a legal document that states who the rightful heirs to the property are. This could include one person, several people, or siblings inheriting together. This document is often used when there wasn’t a will or the will wasn’t probated.
To complete an affidavit of heirship, you’ll need some basic information about the heirs, and a few disinterested parties—people who knew the decedent but won’t financially benefit from the sale of the house.
What Types of Property Can Be Inherited?
While we often talk about selling an inherited house, there are many types of property that can be inherited. Here’s a look at different types of property that could be passed down through an estate:
Money, bank accounts, investment accounts
Investment assets such as stocks or bonds
Intellectual property like copyrights or patents
Personal belongings (furniture, clothing, jewelry, cars, etc.)
Real estate including land, homes, or commercial buildings
Even though many types of property can be inherited, real estate tends to be the most common—and often the most complicated—asset to sell.
Can Siblings Force the Sale of Inherited Property?
If you’ve inherited property with siblings, things can get tricky, especially if you don’t all agree on what to do. Yes, siblings can force the sale of inherited property if ownership is divided. This typically happens through a partition action filed in probate court.
If some siblings want to sell and others don’t, the court may force the sale to ensure the estate’s debts are paid or to allow the majority of heirs to liquidate the asset. Once the property is sold, the proceeds will be split among the heirs, even if one of the siblings doesn’t want to sell.
If I Sell Inherited Property, Is It Taxable?
Yes, the sale of an inherited property is taxable and will be treated as an investment gain by the IRS if you make money on the sale. However, you won’t be taxed on the entire difference between the original purchase price and the sale price—just the difference between the inherited value (also called the “stepped-up basis”) and the sale price.
If you sell the house within a year of inheriting it, the IRS will apply a short-term capital gains tax rate, which ranges from 10% to 37%, depending on your income bracket. If you wait over a year to sell, the long-term capital gains tax applies, ranging from 0% to 20%.
When Can the Executor Sell the Probate Property in Texas?
If you’re serving as the executor of an estate in Texas, it’s not a good idea to sell the house before probate is complete. Before listing any property, you’ll need to file with the probate court and get approval. The court must verify the will and either approve or appoint the executor. Once everything is validated, the executor can proceed with selling the property.
If the decedent had outstanding debts, the executor may need to submit any offer on the house to the court for approval before accepting it. This ensures that creditors are paid before the estate is settled.
Can You Sell a House Before Probate Is Complete in Texas?
Yes, you can sell a house during the probate process in Texas, but only if you file an application and make sure everything has court approval. The process needs to be followed carefully to avoid delays or issues with the sale. Once the sale is finalized, the profits go into a probate escrow account. After all debts are paid and probate is finalized, the remaining funds will be distributed as specified in the will.
Do You Need to Go Through Probate to Sell an Inherited House in Texas?
In most cases, yes. Texas probate laws require you to go through probate before selling an inherited house. The exceptions are few, such as if you can request informal probate, which is usually an option when the will is straightforward. The probate process ensures that the deceased’s final wishes are respected, debts are paid, and all beneficiaries receive what they are entitled to.
What’s Next?
Once you’ve sorted out the will, probate, or affidavit of heirship, you can move forward with selling the property. Even if a few extra steps are needed, like handling tax considerations or managing sibling agreements, you can still sell the house. Make sure to work with someone who understands inherited properties to guide you through the process.
Inheriting a property can feel overwhelming, especially when deciding what to do next. But whether you have a will, need an affidavit of heirship, or are navigating tax implications, selling the property is an option. Just be sure to get the right advice from professionals who can help you every step of the way.
If you have questions or need assistance selling your inherited property in San Antonio, give us a call at (210) 201-6644 or visit our website at sellmysanantoniohouse.com. We’re here to make the process as smooth as possible.