First Steps After Inheriting a Property in Los Angeles

What to do with an Inherited Home in Los Angeles (and How to Do It)

Inheriting a home in Los Angeles—whether it’s in Studio City, Sherman Oaks, Burbank, or anywhere in the San Fernando Valley—can feel overwhelming. Along with the emotions that often come with inheriting a family property, there are also important financial, tax, and legal questions to consider. If you’ve recently inherited property in Los Angeles, here are the first steps to take.

1. Secure and Assess the Property

Your first priority should be making sure the inherited home is safe and protected:

Change the locks and ensure the property is secure.
Notify insurance providers and confirm coverage is still in place (some policies change after the original owner passes away).
Do a quick walkthrough to assess condition—look for leaks, deferred maintenance, or safety issues.

This ensures you’re protecting one of the estate’s most valuable assets.

2. Determine Ownership and Legal Status

Before you can decide what to do with the inherited property, you need to clarify how it legally transfers to you:

Probate: Many Los Angeles homes pass through probate, a court-supervised process of settling the estate.
Trust administration: If the property was held in a trust, it may be able to transfer without probate.
Transfer-on-death deed: In some cases, the property passes directly to the heir.

Because these situations vary, it’s important to consult a probate or estate attorney familiar with Los Angeles probate law to understand what applies in your case.

3. Understand Potential Tax Implications

Inheriting real estate in California can have tax consequences. Here are some issues to be aware of (without giving tax advice):

Property taxes: Proposition 19 changed how property tax reassessments work for inherited homes in California.
Capital gains taxes: If you sell an inherited house in Los Angeles, capital gains may apply—but you may also benefit from a “step-up in basis,” which adjusts the home’s value for tax purposes at the time of inheritance.
Estate taxes: While federal estate tax applies only to larger estates, it’s worth confirming whether it’s relevant in your case.

⚠️ Every situation is different, and the rules can be complex. Always consult a qualified tax professional before making any decisions about inherited property taxes.

4. Evaluate Your Options

Once you understand the legal and tax considerations, you can decide what’s best for the inherited home:

• Keep it as your residence.
• Rent it out for income.
• Sell it and use the proceeds for other purposes.

Each option—whether you keep, rent, or sell inherited property in Los Angeles—comes with financial, practical, and emotional considerations. For example, selling an inherited home in Sherman Oaks or Studio City may yield a strong return in today’s market, but renting out an inherited property in Burbank could provide long-term income.

5. Prepare for Family Discussions

If there are multiple heirs, decision-making can become complicated. It’s best to:

• Keep communication open and transparent.
• Work with neutral professionals (attorneys, accountants, real estate agents) to guide the process.
• Put agreements in writing to avoid misunderstandings later - This is an absolute MUST

6. Work With Experienced Local Professionals

Inheriting property is not just a financial transaction—it often carries deep personal meaning. The right professionals can help make the process smoother:

Estate attorney – to guide you through probate or trust administration.
Tax professional – to explain potential tax obligations and savings opportunities.
Local real estate agent – to evaluate the home’s current market value and help you decide whether selling, renting, or keeping is the best option.

✅ Frequently Asked Questions About Inheriting Property in Los Angeles

Q: Do all inherited homes in Los Angeles have to go through probate?

Not always. If the home was held in a living trust or transferred through a transfer-on-death deed, it may bypass probate. Otherwise, probate is often required in California.

Q: Will my property taxes go up if I inherit a house in California?

Possibly. Proposition 19 changed the rules for keeping a parent’s low property tax base. In many cases, an inherited home that isn’t your primary residence will be reassessed. Always check with the Los Angeles County Assessor or a tax professional.

Q: What is a “step-up in basis” for inherited property?

This is a tax rule that resets the property’s value to its fair market value at the time of inheritance, which can reduce capital gains taxes if you sell.

Q: Can I rent out an inherited home in Studio City, Sherman Oaks, or Burbank?

Yes. Many heirs choose to rent out inherited property, but you’ll need to consider landlord responsibilities, potential rent control rules, and the condition of the property.

Q: What if there are multiple heirs and we disagree about what to do with the home?

If heirs cannot agree, the property may need to be sold and proceeds divided. Mediation or working with experienced professionals can help resolve disputes.

📌 Helpful Resources

Here are some trusted resources for anyone inheriting property in Los Angeles:

Los Angeles County Probate Court (Van Nuys & Central District):
LA Superior Court – Probate Division

Los Angeles County Assessor’s Office – Property Tax & Prop 19 Info:
LA County Assessor Prop 19 Information

California State Controller – Inheritance & Property Information:
California State Controller – Unclaimed Property & Estates

IRS – Inherited Property and Taxes:
IRS Guidance on Inherited Property

California Department of Real Estate (DRE):
CA DRE Consumer Information

Final Thoughts

Inheriting a home in Los Angeles can feel like both a gift and a challenge. By securing the property, clarifying legal and tax issues, and surrounding yourself with the right professionals, you’ll be in a strong position to make the best decision for your situation.

If you’ve inherited a home in Studio City, Sherman Oaks, Burbank, or anywhere in the San Fernando Valley, I can help you understand your real estate options and provide a clear path forward.

📞 Contact me today to discuss your next steps. Call me at (310)308-8672