Ask the Expert: What to Do When You Inherit a House

Q: My mother has left me her house in her will. What are the steps in claiming that house?

A: First, we’re sorry for your loss. Inheriting a home—especially one with deep personal meaning—can bring both emotional and practical questions. If your mother left you her house in her will, the process of officially claiming it involves a few key steps.

1. Probate Comes First

Before anything else, the will must go through probate, which is a court-supervised process where the will is validated and an executor is authorized to handle the estate. Once the court confirms the will and executor, the executor (or estate attorney) will start transferring assets—like the house—according to the will’s instructions.

2. Understand the Mortgage

Inheriting a home doesn’t mean you automatically take on the mortgage—but the property stays tied to it. This means you’re not personally responsible for the loan unless you choose to assume it, but the lender could still foreclose if payments stop.

The executor or heir should contact the mortgage lender, providing a death certificate and documentation from probate to inform them of the change in ownership.

3. Explore Your Options

Once you’re recognized as the legal heir, you’ll need to decide what to do with the home and the mortgage:

• Assume the mortgage: You may be able to take over payments, keeping the same loan terms. The lender will likely check your credit score and income to make sure you qualify.

• Refinance the mortgage: If you’d prefer different terms or the current payments are too high, you can apply for a new mortgage in your name—if you qualify.

• Pay off the mortgage: If your mother’s estate includes enough assets (such as life insurance or savings), the executor might use those funds to clear the loan. You can also pay it off using your own funds.

  

• Sell the house: If you don’t want the home—or can’t afford to keep it—you can sell it. The mortgage will be paid off from the sale proceeds, and any remaining funds go to you.

4. Ongoing Responsibilities

If you decide to keep the house, remember you’ll be responsible for monthly mortgage payments, property taxes, insurance, and general upkeep. Even during probate or while you’re deciding what to do, make sure mortgage payments continue to avoid any risk of foreclosure.

5. Consider the Tax Side

Inheriting property can come with tax implications, such as capital gains tax if you later sell the home. A tax professional or estate attorney can help you understand your responsibilities and any benefits—like a stepped-up basis that could reduce your taxable gain.

Claiming an inherited home is a big step that combines legal, financial, and personal factors. Make sure to work closely with the estate’s executor, stay in touch with the mortgage lender, and consult professionals when needed—especially if you’re unsure about refinancing, taxes, or your ability to keep the property. Most importantly, don’t stop making payments during the transition. Keeping the mortgage current helps protect your options as you plan your next move.