What happens to a home when someone dies in Houston, Texas? When a homeowner dies in Texas, the property typically goes through probate — a court-supervised process that transfers legal ownership to heirs. Texas has a relatively streamlined probate process compared to other states. The timeline is typically 3–9 months, and heirs generally have three options: keep, rent, or sell the inherited property.
- Texas probate is handled in the county court where the deceased lived
- Average Texas probate timeline: 3–9 months for straightforward estates
- Texas Small Estate Affidavit available for estates under $75,000 (excluding homestead)
- Inherited property receives a stepped-up cost basis — significant tax advantage
- A REALTOR® experienced with inherited properties can coordinate a sale during or after probate
Losing a family member is hard. Dealing with their home — often while still grieving — can feel overwhelming. This guide is written in plain English to help Houston families understand the process, their options, and what to expect at each stage.
Important: This article provides general information only and is not legal advice. Every estate is different. Consult a Texas probate attorney for guidance specific to your situation. Christine can refer you to trusted probate attorneys in the Houston area.
What Is Probate and Does Every Houston Home Go Through It?
Probate is the legal process through which a deceased person's assets — including real estate — are transferred to heirs or beneficiaries. Not every property goes through probate. A home may pass outside of probate if it was:
- Held in a living trust (the trust transfers ownership directly)
- Owned jointly with right of survivorship (the surviving owner receives the property automatically)
- Designated through a Transfer on Death Deed (TOD deed), which Texas allows
If none of these apply, the home will almost certainly need to go through probate before it can be sold or transferred.
The Texas Probate Process: Step by Step
The Stepped-Up Cost Basis: The Most Important Tax Fact Heirs Need to Know
When you inherit a home in Texas, you receive a stepped-up cost basis — meaning your cost basis for capital gains purposes is reset to the fair market value of the home on the date of death, not the original purchase price. This is one of the most significant tax advantages in the US tax code.
Example: Your parent bought a home in Cypress for $180,000 in 2005. It's worth $450,000 when they pass away in 2026. Your stepped-up basis is $450,000. If you sell immediately for $450,000, you owe zero capital gains tax. Without the step-up, you would have owed gains on $270,000.
Getting a professional appraisal on the date of death is critical to documenting your stepped-up basis. Christine can refer you to certified appraisers who specialize in estate valuations across Harris and Montgomery counties.
Your Three Options for an Inherited Houston Home
Option 1: Keep It
If you want to move into the home, you'll need to transfer title into your name and potentially refinance any existing mortgage. You'll also want to file for the Texas Homestead Exemption, which reduces your taxable value by $100,000 for school district taxes.
Option 2: Rent It
Renting the inherited property generates income while you decide longer-term. Factors to consider: whether there's an existing mortgage, property condition, your capacity to be a landlord, and the rental market in that specific area of Houston.
Option 3: Sell It
Selling is often the simplest path forward, especially when multiple heirs are involved or the property needs significant work. The stepped-up basis means a prompt sale often results in little to no capital gains tax. Christine has experience coordinating sales of inherited properties — including managing timing around probate court approval when required.
What About the Mortgage?
Federal law (the Garn-St Germain Act) prohibits lenders from calling a mortgage due solely because of the borrower's death when the property transfers to a family member. Heirs can assume the mortgage or continue making payments while deciding what to do. However, most lenders will require formal documentation of the ownership transfer before allowing ongoing payments.
How Christine Helps Families With Inherited Houston Properties
Christine works with families at every stage of the inherited property process — from initial consultation (while probate is still pending) through listing and closing. She coordinates with probate attorneys, provides accurate CMAs for estate valuations, and manages the transaction with the sensitivity these situations require. If you've recently inherited a Houston home and aren't sure what to do next, a free consultation is the right first step.
inherited home Houston TX · Texas probate real estate process · selling inherited property Houston 2026