Immediate concerns
Keep paying the mortgage. The estate is responsible for continuing mortgage payments until the house is sold or transferred. Missing payments risks foreclosure, which can destroy estate value.
Keep homeowners insurance active. Many policies automatically lapse if the house becomes unoccupied for 30 to 60 days. Call the insurance company and let them know the owner died and the house is vacant — they can usually convert to a "vacant dwelling" policy (more expensive but necessary).
Keep utilities on. Especially heat in winter and basic electricity. Frozen pipes cause more estate damage than almost anything else.
Check property taxes. Property tax bills continue. Make sure they're being paid; in some states, the mortgage company collects them in escrow and you don't need to do anything.
Sell or transfer?
The decision depends on:
- What the will says. If the house is specifically bequeathed to a named beneficiary, you generally cannot sell it without their consent (and court approval in some states).
- Whether the beneficiary can afford it. Inheriting a house with a mortgage means inheriting the payments. Many heirs can't afford to keep an inherited home.
- Tax implications. Inherited property receives a stepped-up basis to its value at the date of death. Selling shortly after inheriting typically generates little to no capital gains tax. Holding the property and selling years later generates gains on the appreciation since inheritance.
- Multiple heirs. When the house passes to multiple people, unanimous agreement is often required for any decision. Disagreements between heirs frequently force forced sales.
The physical work
At some point you will be cleaning out the house. Allow yourself to take time with this — it is emotionally harder than people expect. Practical notes:
- Inventory anything of value (appraisal-worthy items) before anything is removed
- Distribute sentimental items to beneficiaries only after probate is open and with documentation
- Most clothing, furniture, and household goods have near-zero market value
- Professional estate sale companies typically charge 30–40% of proceeds
- Junk removal and donation are often more realistic than sale for most contents