Losing a parent is one of the most profound and disorienting experiences a person can go through. In the middle of grief, the world does not pause. If your parent has left you their home, you may suddenly find yourself facing legal, financial, and practical decisions you weren’t prepared to make. At Murray | Lobb Attorneys, we have guided families through this process for more than 37 years. We can do the same for you and your family during this difficult time. Here are the steps for navigating the process when your parent has passed away and left you their home.
Step 1: Give Yourself a Moment, Then Gather the Documents
There is rarely a true emergency in the first few days after a loved one’s passing. Take a breath. Once you have taken some time (but not too much time), begin gathering the essential paperwork:
- The original will, if one exists
- The deed to the property
- Any trust documents
- Mortgage statements or evidence of liens on the home
- The homeowner’s insurance policy
- Recent property tax statements
Order at least 10 to 15 certified copies of the death certificate from the county or state vital records office. You will need them for virtually every institution you deal with, including banks, insurers, the deed office, and the court.
Step 2: Determine Whether Probate Is Required
Whether the home must pass through probate depends on how it was titled and whether your parent had a will or estate planning in place. In Texas, not all property requires a court-supervised probate process.
If the home was held jointly with a right of survivorship, or if your parent had a Transfer-on-Death Deed (sometimes called a “Lady Bird Deed” in Texas), the property may transfer to you automatically without probate. If a living trust was in place, the home may pass directly to the named beneficiaries the same way.
Probate will likely be necessary if the home was titled solely in your parent’s name with no such arrangements. Texas offers several paths, from full estate administration (the most formal route, which requires an attorney) to streamlined options like a Small Estate Affidavit or Muniment of Title for estates with limited assets and no unpaid debts. Only a probate attorney can tell you which method fits your situation.
Step 3: Secure and Maintain the Property
While the legal process is underway, you have a practical responsibility to protect the home. Here is what you must do in the meantime:
- Notify the homeowner’s insurance company. Most policies have provisions about vacant or transferred properties. Contact the insurer promptly to confirm coverage stays in place.
- Continue mortgage payments, if applicable. If your parent had a mortgage, payments must continue. Under the Garn-St. Germain Act, lenders generally cannot call the loan due simply because property passes to a family member through inheritance, but you must stay current and eventually address the loan properly.
- Address property taxes. Exemptions your parent enjoyed, including the homestead exemption, do not automatically transfer to you. Contact your county appraisal district to understand your options under state law.
- Keep up with basic maintenance. A vacant home can deteriorate quickly. Even if you’re not ready to move in or sell, routine upkeep protects the asset.
Step 4: Understand the Tax Implications Before You Act
There are tax consequences when you sell a home. These may have implications for your decision on what to do with the home.
When you inherit property, the IRS generally resets the cost basis to the property’s fair market value on the date of your parent’s death. This is known as the stepped-up basis rule. According to IRS guidance on gifts and inheritances, your basis is typically the fair market value on the date the decedent died. If your parent bought the home for $80,000 and it is now worth $350,000, your taxable gain is measured from the stepped-up value at inheritance, not from what they originally paid.
If you sell the home, any sale must be reported to the IRS. Per IRS Topic No. 409 on Capital Gains and Losses, if you sell for more than your stepped-up basis, you have a taxable gain. Inherited property is automatically treated as long-term, regardless of how long you held it, which typically means a lower tax rate. Keep records of any improvements you make after inheriting, as these increase your basis and reduce your taxable gain at sale.
Step 5: Decide What to Do With the Home
Once title is properly transferred to you, you will face the most personal question of what to do with the home. Here are your options:
- Move in. Some heirs choose to make the property their primary residence for sentimental or financial reasons. If you do, apply for the homestead exemption with your county appraisal district.
- Sell the property. Many heirs find selling the most practical option, especially if the home is in another city or maintenance costs are a burden. Thanks to the stepped-up basis, you may owe little or no capital gains tax if you sell relatively soon after inheriting.
- Rent it out. If you’re not ready to sell but won’t live there, renting can generate income while you decide. Be aware that landlord status brings its own legal and tax obligations.
- Co-ownership with other heirs. If the home is left to multiple people, everyone must agree on a path forward. Disagreements can become legally complicated quickly, so address these conversations early and with legal guidance if needed.
Speak With a Harris County Probate Lawyer Today
Every estate is different. The steps above offer a general roadmap, but the specifics of your situation, including your parent’s will, how the property was titled, and whether there are creditors or multiple heirs, all shape what’s required. Our Harris County probate attorneys can help you avoid costly mistakes, navigate probate when necessary, and make confident decisions about your parent’s home.
Murray | Lobb Attorneys handles probate and estate administration throughout Harris, Galveston, Fort Bend, Montgomery, and Chambers County. Call us today at (288) 481-0630 or message us online to schedule a consultation.