Inheriting a house in Texas can feel like getting a gift wrapped in a problem. You're grieving, you're dealing with family, and suddenly you're responsible for a property that may have taxes, maintenance, or emotional weight attached to it.
This guide walks you through the most important things to understand — what your options actually are, what the costs look like, and how to move forward without making a mistake you'll regret.
Step 1: Figure Out How the House Was Owned
Before anything else, you need to know how the deceased owned the property. This determines whether you need to go through probate and how quickly you can act.
Was There a Will?
If the deceased left a valid will that names you as a beneficiary, the house transfers through probate. Texas has a relatively streamlined probate process compared to many states — but it still takes time and money. An attorney typically charges $2,500–$5,000 or more for an uncontested probate, and the process can take 3–6 months (sometimes longer if heirs disagree).
Was There a Transfer-on-Death Deed?
Texas allows "Lady Bird Deeds" and Transfer on Death Deeds, which pass real property directly to beneficiaries without going through probate. If this was set up, you may be able to establish your ownership quickly with just a death certificate and some paperwork at the county clerk's office.
Was the Property in a Trust?
If the house was held in a revocable living trust, probate is avoided entirely. The successor trustee can transfer or sell the property according to the trust's terms.
Was There No Will?
If someone dies intestate (without a will) in Texas, the property passes by the state's intestacy laws. This typically means a spouse inherits, or children inherit equally, but it can get complex with blended families. You'll likely need a Small Estate Affidavit, Muniment of Title, or full probate depending on the assets involved.
Step 2: Understand the Immediate Costs You're Taking On
While you're figuring out ownership, the clock is running on expenses. Here's what doesn't stop just because someone passed away:
- Property taxes: Texas has no state income tax, but property taxes are among the highest in the nation. If the deceased had an over-65 or disability exemption, it expired when they died. Expect a higher tax bill.
- Homeowner's insurance: Most policies become void or difficult to maintain when the named insured dies. You need to get your own policy on the property quickly — even a vacant home policy — to protect yourself from liability.
- Utilities: If you want to maintain the property (prevent pipes from freezing, run sump pumps, keep the lawn from dying), utilities need to stay on in someone's name.
- Mortgage payments: If there's an outstanding mortgage, payments are still due. Federal law allows heirs to assume a parent's mortgage in many cases, but the servicer will want to be notified and documentation will be required.
- Deferred maintenance: The longer a property sits, the more problems compound. A leaky roof becomes rot. A small foundation crack becomes a structural issue.
Step 3: Know Your Three Options
Option A — Keep It and Live In It
If the property is in good shape and you want to live there, this can make excellent financial sense. You'll get a stepped-up cost basis for tax purposes (meaning the IRS treats the home's value as of the date of death as your new "purchase price," reducing capital gains if you sell later). You'll also need to transfer ownership officially through probate or a deed — you shouldn't just move in.
Option B — Keep It and Rent It
Rental properties in Bexar and Comal County can be a solid investment. But being a landlord isn't passive — especially with an older property that may need repairs before it qualifies for rental. Be realistic about the time and capital required before committing to this path.
Option C — Sell It
For many heirs, selling is the most practical choice. You avoid ongoing carrying costs, you don't have to manage repairs or tenants, and you can close a chapter during an already difficult time.
Selling through a traditional realtor works well when the house is in good condition, probate is already settled, and all heirs are in agreement. If any of those three things aren't true, working with a direct buyer like I35 Home Solutions is often much faster and simpler.
Step 4: Understand the Tax Implications
The tax picture when inheriting real estate is actually more favorable than many people realize:
- No Texas inheritance tax: Texas does not have a state inheritance or estate tax. Federal estate taxes only apply to very large estates (over $12 million per individual as of 2024).
- Stepped-up basis: Your cost basis in the property is "stepped up" to the fair market value at the date of death. If the home was worth $200,000 when you inherited it and you sell for $205,000, you only owe capital gains tax on the $5,000 gain — not the full value.
- Long-term capital gains treatment: Even if you sell immediately, inherited property is treated as long-term capital gains (favorable rates), regardless of how long you held it.
When Multiple Heirs Are Involved
This is where things get complicated. If you and two siblings inherit a house equally, you all have to agree on what to do with it. One person can't force a sale — but one person also can't block it forever.
If heirs genuinely can't agree, a "partition action" lawsuit is a legal remedy — but it's expensive, slow, and tends to damage family relationships. The better path is an honest conversation about the financial reality: carrying costs, the property's condition, what it would actually sell for, and whether anyone has the capital or desire to buy out the others.
We've worked with estates where multiple heirs are involved. A clean sale at a fair price often becomes the path of least resistance — everyone gets their share and can move on.
Selling an Inherited House As-Is
If the house has deferred maintenance, code violations, outdated systems, or other issues, you have two choices: invest in repairs before selling, or sell it as-is.
Investing in repairs can sometimes make sense — but it requires capital upfront, time to manage contractors, and carries risk (you won't always get back what you put in). Selling as-is eliminates all of that. You don't need to clean it out, repaint it, or fix a single thing.
Inherited a House in Bexar or Comal County?
Tell us about the property and your situation. We'll give you a straight answer about what your options are and what we can offer — no obligation, no pressure, no upselling you on anything.
Talk to Bill → 📞 (830) 264-9899Common Questions
Can I sell before probate is complete?
Generally, no — you need legal authority to sell. However, Texas has a process called "Muniment of Title" that can be faster and cheaper than full probate in some cases. An estate attorney can tell you which process applies to your situation and how quickly you can move.
What if the house has a reverse mortgage?
Reverse mortgages become due when the borrower dies. Heirs typically have 6 months to sell, refinance, or pay off the balance. Contact the loan servicer immediately to understand your timeline — these do have deadlines that matter.
What if the house is in another city?
Managing an out-of-town inherited property is difficult. We work with heirs who live anywhere — you don't have to be local. We can walk the property, handle the process, and close through a title company without requiring you to fly in (though we're happy to meet in person if you prefer).
Do I have to clean out all the stuff inside?
No. We take the property in whatever condition it's in. You can take what you want, leave the rest. We handle the cleanout.