Complete Reference · California Inherited Property

The California Inherited
Home Starter Kit

Every resource you need after inheriting a California home, organized in the order you actually need them. Start at Stage 1, work through each stage, and use the tools and guides at each step.

Inheriting a California home means facing dozens of interlocking questions in a short window. What do you do first? What can wait? Who do you need to hire? What deadlines matter?

This kit organizes every Wolf Allies resource into a coherent path. Each stage has one or two guides, checklists, or calculators tailored to that specific point in the process. Start where you are. Move at your own pace. Come back when you need the next tool.

Stage 1: The First Week

Immediate

Focus on safety, security, and preservation. Do not sign anything, sell anything, or make major decisions yet. The goal at this stage is only to gather information and stabilize the situation.

Timeline
Inherited Home Timeline
Complete week-by-week walkthrough of what to do from day 1 to year 1. Start here to understand the full sequence.
Start with the timeline
First Steps
What to Do First When a Parent Dies
Immediate actions for the first days and weeks. Death certificates, notifications, and property security.
First steps

Stage 2: Understand the Situation

Weeks 2 to 4

Establish what you actually inherited, how it will transfer, and what your obligations are. This is when you engage an attorney and figure out whether probate is required, whether the property is in a trust, or whether a simplified procedure applies.

Overview
California Inherited Property Overview
Foundational guide to how California treats inherited real estate. Trust vs probate, key rules, and common paths.
Overview
AB 2016: The $750K Probate Threshold
Legal analysis of the 2025 simplified probate procedure and whether it applies to your situation.
Legal analysis at AskPlevy

Stage 3: Value the Property

Weeks 4 to 8

Establish the fair market value at date of death. This anchors stepped-up basis calculations, Prop 19 exclusion analysis, family agreements about sale or buyout, and probate filings. Get this right and everything downstream is easier.

Appraisal Guide
When to Appraise: CMA vs Formal Appraisal
When to get an appraisal, why timing matters, and when a CMA is sufficient versus when you need formal documentation.
Appraisal timing
Step-Up in Basis for Inherited Property
The federal tax rule that makes date-of-death valuation so important. Legal detail at AskPlevy.
Legal analysis at AskPlevy

Stage 4: Understand Prop 19

Weeks 4 to 12

California's Proposition 19 determines how the property will be taxed going forward. The 12-month occupancy window starts at the date of death. Understand your options before that clock runs out.

Worked Examples
Real Prop 19 Examples: 10 Scenarios
Ten worked scenarios showing how Prop 19 actually applies to real families with real numbers.
See examples
Calculator
Prop 19 Reassessment Calculator
Estimate your property tax under Prop 19 depending on how you use the inherited home.
Run the numbers

Stage 5: Make the Decision

Months 3 to 6

With value established, Prop 19 analysis complete, and the family understanding the options, it is time to decide: keep the home and occupy, keep and rent, sell, or one heir buys out the others.

Framework
Decision Framework
A structured framework for walking through the keep-sell-rent-buyout decision with the right questions in the right order.
Work through the decision
Guide
Keep vs. Sell Analysis
The tax math, carrying costs, and framework for making the keep-or-sell decision.
Keep or sell
Family Meeting

If multiple heirs are involved, work through Stage 5 together. Use the Family Meeting Guide to structure the conversation productively and reach consensus with everyone seeing the same numbers.

Open the Family Meeting Guide →

Stage 6a: If You Are Selling

Months 4 to 9

Selling inherited property has additional complexity beyond a standard residential sale. Court approvals, disclosure exemptions, trust or estate documentation, and coordination with attorneys and title companies all matter.

Checklist
Documents to Gather Before Selling
The complete checklist of documents you need before listing. Property records, estate documents, financial records, disclosures.
Get organized
Guide
Trust Sale vs Probate Sale
Understand the differences between selling through a trust and selling through probate, including timelines and requirements.
Trust vs probate

Stage 6b: If One Heir Is Buying Out Others

Months 4 to 9

Sibling buyouts can preserve Prop 19 benefits and keep the property in the family. But they need to be structured properly, financed appropriately, and documented carefully.

Calculator
Family Buyout Calculator
Calculate what each heir owes or receives in a sibling buyout. Home value, mortgage, closing costs, and shares.
Run buyout numbers
Guide
How Sibling Buyouts Work
Structuring the buyout, financing, agreements, and how to preserve Prop 19 benefits through the transaction.
Buyout mechanics

Stage 7: Manage the Ongoing Situation

Throughout Administration

While the estate or trust settles, bills continue and decisions accumulate. Understanding who pays for what and how to document everything prevents most disputes.

Guide
Carrying Costs: Who Pays While Settling
Mortgage, taxes, insurance, utilities, HOA, and maintenance during administration. Who pays, when, and reimbursement rules.
Understand carrying costs
Checklist
Trustee Responsibilities Checklist
If you are the successor trustee, the full checklist of ongoing duties and responsibilities.
Trustee duties

Reference: Key Terms Glossary

Terminology you will encounter throughout the process:

Prop 19
California Proposition 19, effective February 16, 2021. Changed the parent-to-child property tax exclusion. Now requires the inheriting child to make the home their principal residence within 12 months to preserve the parent's assessed value.
Stepped-Up Basis
Federal tax rule that resets the tax basis of inherited property to fair market value at date of death. Substantially reduces capital gains tax when the inheritor later sells.
AB 2016
California Assembly Bill 2016, effective April 1, 2025. Raised the simplified probate threshold for a decedent's primary residence from $184,500 to $750,000.
Petition to Determine Succession to Primary Residence
The court petition (Form DE-310) used to transfer title to a qualifying primary residence under AB 2016 without full probate. Applies to primary residences under $750,000.
IAEA Authority
Independent Administration of Estates Act authority. Allows executors to complete many actions, including selling real property, without individual court approval on each action. Requested when filing the Petition for Probate.
Certification of Trust
A short document summarizing key trust provisions (per California Probate Code Section 18100.5). Used to prove trustee authority without disclosing the entire trust document. Preferred by title companies for trust sales.
Letters Testamentary / Letters of Administration
Court-issued documents formally appointing the executor (with a will) or administrator (without a will) and giving them authority to act on behalf of the estate.
Probate Referee
California-specific court-appointed appraiser used to value estate property in probate cases. Fee is set at 0.1% of property value with a minimum of $75.
BOE-19-P and BOE-19-B
California Board of Equalization forms filed with the county assessor to claim Prop 19 parent-child exclusion. Must be filed timely to preserve the exclusion.
Notice of Proposed Action
Form DE-165 used under IAEA authority to notify beneficiaries of an executor's intended action (like selling real property) with 15 days advance notice, avoiding the need for court confirmation.

Next Steps: Where You Are Now

If you are just starting, work through Stage 1 first. Every subsequent stage builds on the last.

If you are further along, jump to the stage that matches your current situation. Each stage's resources are designed to be useful independently as well as in sequence.

If you have questions the resources do not answer, or if you need referrals to attorneys, appraisers, or agents experienced with California inherited property, Wolf Allies can help you find the right specialists.

Legal Questions?
Talk to a California estate attorney
Wolf Allies can introduce you to an experienced California estate or probate attorney at CunninghamLegal to discuss your specific situation.
Get Connected With an Estate Attorney →
Ready to find the right specialists?

Wolf Allies connects California families with agents experienced in trust, probate, and inherited property transactions. At any stage of the process, we can help you find who you need.

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William B. Plevy, California Attorney & Real Estate Broker · DRE #01956776
William is a California attorney and licensed real estate broker who founded Wolf Allies to connect families with specialists in trust, probate, and inherited property sales. Wolf Allies is a real estate referral platform, not a law firm.