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You Inherited a House. Now What? The First 5 Things You Should Do
Inheriting a home can bring a lot of emotions and unexpected responsibilities. Along with the loss of a loved one, you may suddenly find yourself responsible for a property, expenses, paperwork, and decisions you've never had to make before.
The good news is that you don't have to figure everything out today.
Here are five important steps to help protect yourself, protect the property, and make informed decisions about what comes next.
1. Make sure the house is safe and secure
One of the first things to do is make sure the property is protected, especially if nobody is living there.
- Check that doors and windows are secure.
- Look for water leaks, storm damage, or other urgent problems.
- Make sure heating, electricity, and other essential utilities are maintained as needed.
- Take pictures of the property and its condition.
- Arrange for someone you trust to check on a vacant house regularly.
Why this matters: An unattended home can develop expensive problems quickly. A little attention now may save thousands of dollars later.
If someone is living in the home, respect their legal rights before changing locks or restricting access.
2. Contact the homeowner's insurance company
Don't assume the existing insurance policy will automatically protect an inherited home indefinitely.
Contact the insurance company to explain that the homeowner has passed away. Ask whether the property remains fully covered, particularly if it's now vacant.
Why this matters: Some insurance policies have restrictions on vacant or unoccupied properties. Discovering a coverage problem after damage occurs could be financially devastating.
3. Find out who has the legal authority to make decisions
Before selling, transferring ownership, or distributing possessions, determine how the property was legally owned.
Start by locating the will, trust, or deed, if available.
Find out whether the property will need to go through probate and who is authorized to act on behalf of the estate.
Why this matters: Inheriting a house doesn't always mean you can immediately sell it or make decisions about it. Understanding the legal situation early can prevent family disagreements and expensive delays.
An estate attorney can help if ownership or authority is unclear.
The Colorado courts explain how to open an estate, with all the forms.
4. Understand the financial responsibilities
Even if the house was inherited, there may still be expenses that need attention. Find out:
- Is there an existing mortgage or reverse mortgage?
- Are the property taxes current?
- Are there HOA dues or outstanding liens?
- What are the monthly costs of maintaining the house?
- Are there any upcoming payment deadlines?
Why this matters: Understanding what is owed gives you a clearer picture of your responsibilities and helps prevent avoidable financial problems.
Keep records of expenses paid on behalf of the estate, and don't assume you are personally responsible for every debt of the deceased homeowner.
5. Understand what the house is worth and explore your options
Before making a major decision, find out the home's approximate market value and what repairs it may need.
Depending on your circumstances, you may have several choices:
- Keep the house as your own home.
- Rent the property to generate income.
- Make repairs and sell through a real estate agent.
- Sell the property as-is without taking on the repairs yourself.
Consider obtaining a professional appraisal and asking a qualified tax professional about the property's inherited tax basis.
Why this matters: There is no single right answer for every inherited home. The best decision depends on your financial situation, your family, the property's condition, and your personal goals.
Want to see those choices side by side? Compare your options.
One final thought
You don't have to make a rushed decision, and you shouldn't feel pressured into one.
Take time to understand your responsibilities, ask questions, and explore your options.
The goal isn't simply to decide what to do with the house. It's to make a decision you can feel confident about moving forward.
If talking it through would help, call or text. It's free, and you don't have to decide anything. We buy houses, and we may want to buy yours, so we'll always say that up front.
This guide provides general educational information. Inheritance, probate, insurance, and tax rules can vary by state and individual circumstances.