Tips for executors on navigating the sale of a loved one's home during estate administration. Learn essential steps and considerations for a smoother process.
Article: 11 minutes
Updated: October 5, 2026 Published: January 11, 2024
By: USAA Reviewed by: Editorial contributors
As an executor, selling a house involves determining legal ownership, securing the property, preparing it for sale and then carefully considering offers while managing any debts and tax obligations.
Dealing with the loss of a loved one can be a challenging experience for family members, especially for those responsible for settling the estate. That includes managing or selling the loved one's personal property.
While handling an estate may be time-consuming, the process can be even more complicated if there's real estate involved. Data from the ongoing Health and Retirement Study indicate that selling a departed loved one's home usually leads to the longest settlement process, whether the estate is subject to probate or not.
There are numerous reasons why selling a loved one's home can be difficult.
Although the process can seem overwhelming, proper planning and consideration for family dynamics during this period of loss can help you successfully navigate this journey.
As you begin estate administration, you'll most likely need death certificates, so it's a good idea to have plenty of original copies on hand.
You'll need to establish how the property was legally owned and the terms of transfer upon death before you begin selling the home or transferring ownership of it, if necessary. Was it owned individually or jointly with someone? Is it considered community property or is it held by a trust or other entity. This can get complicated, so you may need the help of a lawyer.
How the property was legally owned and how and to whom it passes at death may be determined by carefully examining documents like the will, trust deed or local tax authority records. It may be necessary to file for a new property deed either with or without probate court supervision, depending on the individual state laws. Contact your local county clerk's office and consult with your legal counsel to determine the best course of action.
Tip: Recently, about 30 states have adopted transfer-on-death, or TOD, deeds — also known as beneficiary deeds — as a way for real estate to pass outside of probate.
Usually, a TOD deed would be filed in the local county clerk's office. If you can't locate a copy of the deed among the deceased person's belongings, then check with the appropriate county clerk for more information.
Look for statements that show the lender's name and contact information, the outstanding balance, the interest rate and any penalties or prepayment clauses. Get in touch with the lender as soon as possible to let them know about the owner's passing.
The lender should be able to provide guidance on your options and requirements regarding loan continuance, loan payoff, temporary loan forbearance transferring the loan to the estate.
In addition, whether a home is part of the estate or not, you may be required to follow a court mandated process for notifying any potential heirs and or creditors. Your local probate court and legal counsel may offer more guidance.
When the deceased homeowner was also the borrower for a reverse mortgage, the process can be a bit trickier. As the executor you should contact the lender of the reverse mortgage immediately to review your options, as well as the information provided by the Federal Housing Authority (FHA)Opens in New Window.
Tip: Occasionally, children or heirs may be unaware that their loved one had a reverse mortgage. Many seniors can be tempted by late-night TV commercials offering access to extra money via reverse mortgages.
As such, seniors may not view the reverse mortgage debt obligation as a true debt against the home and may not make other loved ones aware due to this misunderstanding or even embarrassment.
As an executor, family members may be asking you questions as other interested parties make offers to buy the home.
It’s important to communicate with family members so they know you’re on top of things. Some may even be interested in keeping the home. Help them understand all the ramifications of either assuming the loan, if possible, or arranging their own financing.
Welcome their questions and input and be clear that selling the family home can take time. And continue updating them on the status of the home's pending sale throughout the process. You might want to create a group text or email where you can notify family members about what's going on, without having to field multiple individual conversations.
Tip: Keep in mind that it's not your fault if a sibling complains that they need their share of the sale proceeds pronto, whether to pay off debts or to fund some new purchase. There usually isn't much you can do to speed up the process.
Whether or not the estate is subject to probate, as the executor, you're usually responsible to serve in a fiduciary capacity. This means that you must serve the best interests of those you represent as you manage the estate settlement process. This may mean you represent not only your self but also the heirs and the creditors of the estate.
Tip: Although you as the executor may have the legal authority to make all decisions, it may be a good idea to communicate how you will make these decisions to the rest of the family.
While your loved one was still alive, various people may have had access to the home. Upon their death, you may not want these people to be able to freely come and go, especially if there are valuables that need to kept safe for future distribution. Collecting keys to the home is a good start, but you also may want to change the locks and security codes to prevent unwanted access.
You'll eventually need to remove items, such as furniture, artwork, and personal belongings. But during the sale, consider keeping a few items in place to make the home presentable to would-be buyers. Have family members pitch in by assigning them tasks, like clearing out items, cleaning the home, and working with contractors for necessary repairs.
Tip: Think about renting a storage unit and sorting through your loved one’s belongings later. You could also consider holding an estate sale to get rid of unwanted items.
For these situations, the right real estate agent for your family should not only have the prerequisite experience of selling a deceased’s home but also be sensitive to family dynamics during times of grief. They can also help you monitor and maintain the property while it’s on the market, especially if you, or other family members, don't live in the area.
Tip: Have a list of questions ready before you interview prospective real estate agents. Ask how they plan to market the home and who'll be responsible for marketing costs and staging. In addition, you may want to perform a title search to make sure the home or property isn't encumbered by any claims – valid or not.
In many cases you're selling not just a house but a home full of memories and nostalgia.
Family members can become very emotional as the reality of the sale sinks in and may suggest that the house be kept for posterity or rented instead of selling it.
These alternatives may not be viable, so carefully evaluate whether keeping the property or renting it could make financial sense. And don't forget to factor in the financial and emotional cost like paying yearly property taxes and acting as landlord if issues arise with renters.
At the end of the day, selling your loved one’s home is a business transaction and it's important to evaluate incoming offers in terms of how the offer aligns with the best interests of the estate. Things to consider can include offer price, financing terms, any contingencies and timeline for closing, repair requests, or assistance with the buyer’s closing costs.
Tip: Be courteous to all potential buyers but remain professionally firm in your approach. In other words, don't agree to a bad deal just because of personal relationships. Remember, your job as executor is to get the best deal for the estate, while considering multiple factors.
Since real estate can often represent a very large dollar value, the sale of the home may trigger various taxes. Given the current high threshold for federal estate taxes, this may not be a problem.
But several states currently have either a state estate tax, or state inheritance tax, and one state imposes both. That means that it's important to work with qualified tax and legal experts, especially with larger estates.
Tip: If the home is sold to a family member, the IRS may view this as a "controlled" transaction versus "arm's length," especially if the family member received a discount on the sales price. If that's the case, be aware that the difference between the sales price and the market value may need to be reported to the IRS as a gift.
After the sale of the home and the debt is paid, make sure that no further liens exist against the estate. Any other pending liabilities generally need to be paid off before the proceeds from the sale or disposition of the home can be made to heirs.
Depending on how the property passes to the heirs, you may need to file a federal tax return for the estate – IRS Form 041 — or a state tax return. Even if the sale of the home generates a capital gain, this may not equate to tax being owed. Consider working with a qualified tax or legal professional to help you with any tax returns. For more information on taxes for survivors, estate executors and administrators, see IRS Publication 559Opens In New Window.
Tip: The IRS generally requires you to keep income tax returns for three years, but there are certain exceptions that may require maintaining records longer. For more information on tax records, see the IRS websiteOpens in New Window.
It can be a good idea to keep some documents longer, even if not required, such as records relating to any repairs, improvements, maintenance or sale of the home. You never know when a curious family member may ask about some of the expenses involved in the disposition of the home.
Real estate property or a home with outstanding debt against it can add another layer of complexity to the executor's duties during estate administration or probate.
As the executor of the estate, you're typically responsible for using the assets from the estate to pay off creditors. In some cases, there may be enough cash or other securities that could be used to pay off any existing debt on the home.
But that may not always be feasible, so it's important to know your options when there are outstanding loans and not enough ready cash to pay them off.
Active-duty service members and their dependents as well as retired or disabled service members and their dependents may be eligible to take advantage of no-cost legal assistance. Commonly known as JAG, this service can include estate planning. To find a general legal services provider within the continental United States, visit the U.S. Armed Forces Legal Assistance LocatorOpens in New Window.
For more education or to find a local attorney who specializes in estate planning, visit the American College of Trust and Estate CounselOpens in New Window.
USAA’s Survivor Relations Team is here to help.