Selling an inherited home in Texas
The practical version. Probate paths, tax rules, timeline, and what to watch out for when you are the one handling the sale.
Texas makes this easier than most states.
Death to closing, independent admin, no complications. Complex estates: 12+ months.
Attorney + court costs for uncontested probate. Paid from estate assets.
No state estate or inheritance tax. Federal only kicks in above $13.99M (2025).
80% of Texas estates qualify for independent administration. That means the executor can sell the home without asking the court for permission at every step. The key milestone is Letters Testamentary: once you have those, you can list the property. You do not have to wait for probate to fully close.
The tax situation is also in your favor. Inherited property gets a "stepped-up basis," meaning the IRS uses the home's value at the date of death as your cost basis, not what the original owner paid. Texas also has no state capital gains tax.
Four steps. Here is what each one involves.
Figure out which probate path you need
Texas has four paths. Which one applies depends on whether there is a will, whether there are debts, and how much the estate is worth.
Independent Administration: Most common (~80% of estates). Executor handles it with minimal court involvement. 4-6 months.
Muniment of Title: Fastest path. No executor appointed, will itself proves the transfer. Only works if the estate has no unsecured debts. 1-4 months.
Affidavit of Heirship: No will, or will was not probated within 4 years. Three people who knew the deceased 10+ years must sign.
Small Estate Affidavit: Estate under $75,000 (excluding homestead, pensions, insurance). No will required.
- Locate the original will (courts may not accept copies)
- Check for unsecured debts (determines if muniment of title is available)
- Identify all heirs and beneficiaries
- Consult a probate attorney ($150-$300 for initial consultation)
Get Letters Testamentary
This is the document that gives you legal authority to sell, access bank accounts, and make decisions for the estate. Nothing happens without it. Once you have Letters, you can list the property immediately.
- File with the county probate court (Travis County for Austin)
- Hearing is typically 10-15 minutes
- Get multiple certified copies (title company, bank, and lender each need one)
- Some banks require Letters issued within the last 60 days
Understand the tax math (it is probably better than you think)
Stepped-up basis: Your cost basis is the home's value at date of death, not original purchase price. Sell soon after inheriting and you likely owe very little.
Community property bonus: If the deceased was married and the home was community property, both halves get a step-up at the first spouse's death.
No state capital gains tax. No state estate tax. Federal estate tax only above $13.99M.
- Get a date-of-death appraisal or CMA to establish your basis
- Keep records of any repairs or improvements (they add to your basis)
- The homestead exemption does not auto-transfer: refile if an heir is living there
Prep the property and get it listed
Every month the house sits empty costs money: property taxes, insurance, maintenance, lawn care. The sooner you list, the less the estate absorbs in carrying costs.
Disclosure rules: If the estate is the seller (you as executor), you are generally exempt from Texas seller's disclosure. If title already transferred to you personally, you must complete the disclosure.
- Clean out the house (budget 2-4 weeks, it always takes longer than expected)
- Get a pre-listing inspection to find issues before buyers do
- Price competitively: do not overprice and let carrying costs eat into the estate
- If multiple heirs: get written agreement to sell before listing
Multiple heirs who disagree: All must agree to sell, or a court intervenes. One heir refusing can create a deadlock.
Clouded title: Unclear ownership stops the sale. Title companies will not insure it. May need a court judgment.
Reverse mortgages or liens: Must be resolved before or at closing. Contact the servicer immediately.
Texas probate is faster and cheaper than most states. List the home as soon as you have Letters Testamentary. The stepped-up basis saves you on capital gains. The real risk is not the process. It is multiple heirs, clouded titles, and the carrying costs of a house sitting empty while everyone figures it out.
Get a current market value. It takes 24 hours and costs nothing.
Knowing what the property is worth helps you make better decisions about timing, pricing, and whether to sell or keep.
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