What to do with a parent’s house: options and decisions

The first thing is to secure the house. Walk through it, lock it up, and make sure the mail isn’t piling up where anyone can see it. If your parent lived alone, you may want to tell the neighbors so they keep an eye out. Check the basics: water heater, furnace, any leaks under sinks. In Sacramento County, a vacant house in summer heat can go bad fast, so have someone check on it or set a schedule for yourself. You don’t have to decide anything about the house yet. You just have to keep it from falling apart.

Get the paperwork in order before you touch anything big. You’ll need the death certificate, and you’ll want to know whether there’s a will and who the executor is. If the house was held in a trust, that changes things, and you should talk to a lawyer about how the trust handles the property. If it wasn’t, the house may go through probate, and what that means for you depends on the situation. A lawyer can tell you whether you have authority to deal with the house now or whether you have to wait. Don’t sign anything about the house until you know where you stand.

Keep paying what needs paying. Insurance, utilities, property taxes. Let the insurance company know the house is vacant, because a vacant house can have different coverage, and you don’t want a surprise if something happens. Keep records of everything you spend on the house, because those expenses may matter later. If money is tight, talk to a CPA about what you can and can’t do with estate funds.

Then comes the hard part: deciding whether to keep it, rent it, or sell it. There’s no right answer, and it depends on the situation. Ask yourself some plain questions. Do you want to live there? Could you afford to keep it up? Would renting it out make sense, or would being a landlord from a distance wear you down? What would your siblings or other heirs want? If there are several heirs, get everyone talking early, before small disagreements turn into big ones.

If you’re thinking about keeping it, talk to a CPA about taxes and to your insurance agent about coverage. If you’re thinking about renting it, a HUD-approved housing counselor can point you toward resources, and a local property manager can tell you what the rental market looks like. If you’re thinking about selling, get a couple of local real estate agents to walk through and give you their honest read. You don’t have to list with anyone. You’re just gathering information.

The county matters too. Check with Sacramento County about property tax reassessment and any exemptions that may apply, and ask about permits if the house needs work. Some of this depends on how the title was held and what the estate looks like, so keep asking questions until the answers make sense. Take it one step at a time. You don’t have to have it all figured out this month.

More notes on this topic are at what to do with a parent’s house.