Losing a parent or loved one is hard enough. Then comes the house: the paperwork, the decisions, the bills that keep arriving, and a lifetime of belongings to go through. If you’ve inherited a home in Spokane, Coeur d’Alene or the Tri-Cities, or you’re the executor of an estate that includes one, this guide will help you understand the basics and your options.
We’re home buyers, not attorneys or accountants. Probate and tax rules depend on the details, so please work with a probate attorney and a CPA. What follows is general information to help you know what to ask.
First steps after a loved one passes
- Secure the house. Lock it up, collect keys, and make sure someone checks on it regularly.
- Keep the utilities on. Especially in winter, heat matters. A vacant house with no heat can have frozen, burst pipes within days of a cold snap. If the house will sit empty, consider winterizing it.
- Call the insurance company. Let them know the owner has passed and whether the house is vacant. Many policies have limits on coverage for vacant homes, so ask what you need.
- Keep paying the essentials. The mortgage, property taxes and insurance still come due. Missed payments can create bigger problems later.
- Find the paperwork. Look for a will, trust documents, the deed, mortgage statements and recent tax bills.
Probate basics in Washington and Idaho
Probate is the court process for settling someone’s estate: confirming the will (if there is one), appointing a personal representative (often called the executor), paying debts and distributing what’s left. It’s usually handled in the county where your loved one lived.
Some things that commonly come up:
- Not every house goes through probate. A home held in a living trust, owned jointly with rights of survivorship, or passed by certain other arrangements may avoid it. Your attorney can tell you which applies.
- The personal representative has the authority to act. Once appointed by the court, the personal representative can usually handle the house, including selling it. In many Washington and Idaho estates, that can happen without a separate court hearing for the sale, but it depends on the case.
- How long it takes varies. A simple estate with few assets and heirs can move fairly quickly. Larger estates, disagreements among heirs or court backlogs can stretch it out to a year or more.
- Multiple heirs need to agree, or at least the personal representative needs to follow the will and the law. Clear communication among siblings goes a long way.
Taxes to ask your CPA about
Estate tax
Washington has its own state estate tax, which applies to larger estates. Idaho does not have a state estate tax. There’s also a federal estate tax, which only affects very large estates. The thresholds change, so ask your attorney or CPA whether any of this applies.
Stepped-up basis
When you inherit a house, its tax basis is generally “stepped up” to its value at the time of death. That often means much less capital gains tax if you sell soon after inheriting than if your parent had sold it during their lifetime. An appraisal or value estimate as of the date of death can be helpful for your records.
The home sale exclusion
The tax break that lets homeowners exclude a large amount of gain on their primary residence generally applies only if you lived in the home as your own primary residence for the required time. An inherited house you haven’t lived in usually doesn’t qualify.
Property taxes
Keep paying them. Also check whether exemptions your parent had, such as a senior exemption in Washington or the homeowner’s exemption in Idaho, will end now that they’ve passed, which could raise the bill.
Cleaning out a parent’s house
For many families, this is the hardest part, emotionally and physically.
- Take your time with what matters. Photos, letters, heirlooms and keepsakes come first. Let each family member choose a few meaningful items.
- Look for important documents as you go: financial statements, titles, insurance policies, tax returns.
- Sort into keep, sell, donate and discard. Work room by room.
- Consider an estate sale company for furniture, tools and collectibles.
- Donate usable items to local thrift stores and charities.
- Arrange a junk haul for what’s left.
If the family lives out of town, or the job is just too big, ask about your options before you spend weekends and dollars clearing everything out.
Keep it, rent it or sell it?
- Keep it if someone in the family wants to live there and can afford it, or buy out the other heirs.
- Rent it if the house is in good shape and you’re ready to be a landlord, or hire a property manager. See our post on being a landlord for what that involves.
- Sell it to settle the estate, divide the proceeds and stop paying the carrying costs.
It’s okay to sell a house full of memories
Many people feel guilty about selling a parent’s home, or worry about strangers judging a house that hasn’t been updated in decades. There’s nothing wrong with selling a home you can’t keep. The memories go with you, not with the house.
Selling an inherited house as-is
Many inherited homes need updates or repairs, and getting one market-ready while settling an estate can take months. Selling as-is can make things much simpler. With Backyard Home Buyers:
- We buy as-is. No repairs or deep cleaning needed. Ask us about anything left in the house you don’t want.
- You’ll usually have a fair cash offer within 24 hours, which can help heirs agree on a number.
- No fees or commissions, and we pay the closing costs.
- We can close in as little as 7 days, or on the date that fits the probate timeline.
- We’re comfortable working with personal representatives, attorneys and out-of-town heirs.
- In North Idaho we also buy lake property, cabins, manufactured homes on land and land.
We’re a local, family-owned company. Both owners were born and raised in the Inland Northwest, and we’ve done over 500 deals since 2019. We’ll be respectful of the home and your family, and we won’t rush you.
We buy inherited homes in Spokane, Coeur d’Alene and the Tri-Cities. See how it works, or call (509) 461-9079 to talk through your situation.