Who Gets the House When Someone Dies? How Property Passes to Heirs

Who gets a house after its owner dies depends on how the house was owned and which documents exist. A surviving joint owner takes it automatically. A trust or a transfer-on-death deed passes it to the person named. Otherwise the will decides, after probate, and if there is no will the state's intestacy law chooses the heirs. The mortgage stays with the house, but the heir isn't forced to pay it off right away.

How does a house pass to someone after a death?

Check the deed and any trust or beneficiary documents first. The legal paperwork decides, in roughly this order of what applies:

Cornell's Legal Information Institute explains that in a joint tenancy the surviving owners take the deceased owner's interest, which avoids probate. It contrasts that with tenancy in common, which has no survivorship right. Our guides on joint ownership and death and the transfer on death deed explain how each works. Not every state allows TOD deeds, so check yours.

Who inherits the house if there is a will?

The will names who gets the house, but the house doesn't transfer on its own. The court has to confirm the will and appoint an executor, who then follows the will's instructions and transfers title. Until then, a beneficiary generally can't sell or refinance a house held in the dead person's sole name. Once appointed, the executor can sell it if the will or the estate's debts call for it, though some states require court approval first.

Probate also takes time and costs money. Our guides on probate fees and how long probate takes show what to expect, and a small estate procedure may be an option for modest estates.

Who gets the house if there is no will?

Each state has an intestacy statute that lists the heirs in order. The Cornell guide to intestate succession says a surviving spouse and children are typically given priority, followed by close relatives such as parents and siblings, and that assets can escheat to the state if no relatives survive.

California shows how detailed these rules are. After a spouse's share, the order runs to children, then parents, then siblings, then grandparents and others. A surviving spouse's share of the separate property depends on who else survives: all of it if there are no children, parents or siblings, half if there is one child (or no children but a parent or sibling), and a third if there are two or more children. Half of the community property goes to the spouse automatically. Other states differ, so read your state's rules or ask a probate attorney. More in dying without a will.

Unmarried partners and stepchildren are typically not on these lists unless a state law or a document says otherwise.

What happens to the mortgage?

A mortgage doesn't vanish at death. The loan stays secured by the house, and it is paid from the estate or by whoever keeps the home. The FTC says debts are paid from the estate and that relatives aren't personally liable unless they co-signed or another exception applies.

Federal law helps heirs keep the loan in place. Under 12 U.S.C. 1701j-3(d), a lender can't enforce a due-on-sale clause because of "a transfer to a relative resulting from the death of a borrower," or when a spouse or children of the borrower become owners of certain residential property. Under the CFPB's mortgage servicing rules, such a person is a "successor in interest" and the servicer should explain how to prove ownership and keep paying. The CFPB says proof might include the will and death certificate, or a letter from the executor.

Missed payments still lead to foreclosure, so contact the servicer early. See mortgage after death for more steps.

What taxes apply to an inherited house?

• Federal estate tax. It applies only to estates above the filing threshold, which is $15,000,000 for deaths in 2026. Most estates are below it.
• State taxes. Some states have their own estate or inheritance tax. Pennsylvania, for example, charges inheritance tax of 0% for a surviving spouse, 4.5% for direct descendants, 12% for siblings and 15% for other heirs, and the tax is delinquent nine months after death.
• Capital gains on a sale. The IRS says the basis of inherited property is generally its fair market value on the date of death (or the alternate valuation date if the executor elects it). Example: a house bought for $50,000 that was worth $500,000 at death has a $500,000 basis. Selling it for $520,000 would leave about $20,000 of gain, not $470,000. There are exceptions, such as property you or your spouse gave the person within a year before their death.
• Property tax. In California, Proposition 19 limits the parent-to-child exclusion: the home must be the parent's principal residence and the child's primary residence, and the child must claim a homeowners' or disabled veterans' exemption within one year. The excluded value is also capped. Check your local assessor if you're elsewhere.

A written appraisal from near the date of death is a sensible way to document the stepped-up value. Ask a tax professional about your specific case.

What if several heirs inherit the house together?

Co-owners share the costs: property tax, insurance, repairs and utilities. When they disagree, the law gives each co-owner a way out. Cornell's page on partition says any co-owner can compel one, and if the property can't be fairly divided it can be sold by judicial process and the proceeds paid out. A court-ordered sale tends to be slower and costlier than an agreed sale, so a conversation, or a buyout of one heir by another, is worth trying first. See our guides on selling a house after death and estate sales.

Could the house be used to repay Medicaid?

Possibly. Medicaid.gov says states must recover certain costs from the estates of beneficiaries aged 55 and older, including nursing facility and home and community-based services. States can't recover while a spouse, a child under 21, or a blind or disabled child survives, and they must have procedures to waive recovery for undue hardship. If the person received long-term care benefits, ask the state Medicaid agency early.

What to do next

1. Find the deed, any trust, and any TOD or joint-ownership paperwork.
2. Call the mortgage servicer and keep the payments current.
3. Keep the house insured, locked and maintained.
4. Talk to a probate attorney before selling, transferring or moving into the home, especially with several heirs.