Estate Sale After Death: Who Can Sell, Steps and Taxes

An estate sale is a sale of a dead person's household belongings, usually held at the home over a weekend or run online. The belongings are part of the estate, so the executor or administrator generally needs legal authority from the court before selling them. Before the sale, secure the house, search for papers, set aside items left to specific people and get valuables appraised.

What is an estate sale?

An estate sale clears out the contents of a home, such as furniture, kitchenware, tools, clothing, books, art and jewelry, by selling them to the public. It can be run by the family or by a professional company, and it is often held when the house is being sold or emptied. It is not a sale of the house itself. For that, see our guide to selling a house after a death.

Who has the legal right to sell?

The belongings of a person who owned them alone belong to the estate. In most states, the executor named in the will, or an administrator appointed by the court if there is no will, gets authority when the probate court issues letters. As an example, Florida law says a personal representative's powers begin on appointment and include the power to sell personal property of the estate.

That means:

• The executor can sell, once appointed. Our guide on what an executor does covers the role.
• A power of attorney cannot be used. Cornell's Legal Information Institute notes that a power of attorney typically stays effective only while the principal is alive.
• A small estate shortcut may apply instead. Some states let heirs collect personal property with an affidavit when the estate is small. In California, for example, that is possible for estates under $208,850 for deaths on or after April 1, 2025, once 40 days have passed since the death. Other states use different limits and waiting periods. See our guide to small estate probate.
• Not everything belongs to the estate. Items owned jointly, items owned by someone else, and property that passes by beneficiary designation or a trust may be handled differently.
• Heirs cannot just take or sell items. Even family members should wait until the executor says what can go.

If there is no will, state law decides who inherits. Our guide to dying without a will explains what that means.

What should you do before the sale?

1. Secure the home. Change or collect the keys, and remove anyone who does not need to be there. Tell the homeowner's insurer about the death and ask whether a vacant home changes your coverage. See our guide to home insurance after a death.
2. Find the will and any list of gifts. Check what the will says about household items. Some wills leave specific items to named people or refer to a separate list. Take those items out of the sale. Our guide to finding out whether a will exists helps if you cannot find one.
3. Search for papers before sorting. Look through desks, files, coat pockets and books for deeds, account statements, titles, insurance policies, tax returns and key letters before anything is thrown away or sold.
4. Let family choose keepsakes first. A short, agreed-upon process for claiming sentimental items prevents most arguments. If heirs disagree, ask the executor or an attorney how the will or state law resolves it.
5. Make an inventory. The California courts' self-help guide says you do not have to list every household item and can estimate a total by category, but high-value items should be listed on their own. Take photos as you go. Our estate inventory checklist can help.
6. Get valuables appraised. Jewelry, art, rugs, silver, coin and stamp collections and antiques are the items most often underpriced. If the estate has to file a federal estate tax return, the Form 706 instructions require an expert appraisal for any item or collection of similar items valued above $3,000.
7. Deal with special items. Vehicles, medical equipment and firearms have their own rules. See selling a car after a death and disposing of medical equipment. Check state and local rules for firearms and medications before moving them.

How do you choose an estate sale company?

You do not need a company, but many families hire one because it handles pricing, advertising, staffing and security. Ask for a written contract and compare at least two or three companies. Before you sign, ask:

• How are they paid? Fees are usually a commission on sales, a flat fee or both, so get the exact terms in writing.
• Who pays for advertising, signs, staff and cleanup?
• How and when will you be paid? Ask for an itemized sales report and the payment date.
• What happens to unsold items? Some companies take them as part of a buyout, and others leave them with you. A buyout means the company, not the estate, benefits from anything left over.
• Are they licensed, insured and bonded? Some cities and states require permits or sales tax registration for this kind of sale, so ask the company and your city or state tax office.
• Can you see references or past sale listings?
• Will they remove valuables for an appraisal or consignment first?

Never hand over papers, jewelry or cash found in the home. Keep them with the executor.

How do taxes and money work?

• The money belongs to the estate. Deposit it in the estate account. It is used first to pay sale costs, debts and taxes, and the remainder is distributed to the heirs. Our guide to debt when someone dies explains the order.
• The heirs generally don't owe income tax on an inheritance. The IRS says property received as a bequest or inheritance is generally not included in your income, although income that the property later produces can be.
• The tax value is usually set on the date of death. The IRS says the basis of property inherited from a decedent is generally its fair market value at the date of death. If an item sells for about that value, there is little or no taxable gain. If it sells for much more, the difference can be taxable.
• The estate may need its own tax return. An estate with gross income of $600 or more in a tax year must file Form 1041. Ask a tax professional how a sale of valuable items should be reported.
• Keep records. Keep the inventory, appraisals, sales reports and bank deposits for the executor's final accounting.

What about items that do not sell?

Decide in advance. You can donate them, have the company remove them or arrange a clean-out. For donations, keep an itemized list and receipt. Our guide to donating a loved one's belongings covers charities and tax receipts.

What mistakes should you avoid?

• Selling before you have authority. This is the most serious one.
• Throwing things out before checking them. Papers, photo albums, small boxes and old jewelry can matter more than they look.
• Cleaning, polishing or repairing valuable items. Ask an appraiser first, because cleaning can reduce a collector's value.
• Pricing by sentiment. What something meant to the family is not what buyers pay. An appraisal or a company's experience gives you a market price.
• Leaving the house open. Estate sales draw the public into the home, so lock away personal papers, medications, firearms, keys and valuables first.
• Mixing estate money with your own. Keep all sale proceeds in the estate account.
• Rushing. Unless the home must be sold or emptied by a deadline, there is time to do this carefully.

What to do next

1. Find out whether you are the executor, and get letters from the court if you need them.
2. Search the house for papers and take out items left to specific people.
3. Get valuables appraised, then decide how to sell: company, auction, online or a mix.
4. Get a written contract, open the estate account and keep records of every sale.

Our death admin timeline shows how the sale fits with the other tasks in the first months, and the executor's checklist lists what else an executor handles.