If you’ve inherited a property and are considering selling it, you may be wondering, “Is there a required holding period before I can sell?” It’s a common question, and the answer might surprise you.
Navigating the next steps after inheriting a home can be complex. If selling is part of your plan, it’s important to understand any timelines or restrictions that could affect the process.
Is There A Holding Period Before Selling My Inherited Home
Probate Versus Inheritance
In general, an inherited property is a home or piece of real estate that’s passed on to you after someone’s death, typically through a will or estate plan. This transfer doesn’t always happen instantly—it often involves a legal process called probate.
Probate is the court-supervised procedure that verifies the deceased person’s will (if one exists) and ensures that their assets are distributed according to their wishes. During probate, the court confirms that the right heirs are identified, settles any outstanding debts or taxes, and handles any disputes that may arise among potential beneficiaries.
If you’ve been named as the heir to a property that’s still going through probate, you likely won’t be able to sell it immediately. Until the probate process is finalized, the property technically remains under the control of the estate, and any sale would typically require court approval. In some cases, other heirs or family members might challenge the will, which can delay the process even further.
On the other hand, once probate is complete and the title of the home has been legally transferred to your name, you are considered the rightful owner. At that point, you generally have the freedom to sell the property whenever you choose, without any additional waiting period.
Understanding where the property stands in the probate process is key to knowing your options and timeline for selling.
There Is A Holding Period (But Not What You Think)
When it comes to inherited property, the term “holding period” often comes up—but it’s important to understand what it actually means. Contrary to what it might sound like, a holding period doesn’t necessarily restrict you from selling the property. Instead, it’s a term primarily used for tax purposes.
In the context of inherited real estate, the holding period refers to how the IRS determines whether the sale of the property is taxed as a short-term or long-term capital gain. Normally, for properties you purchase, a long-term capital gain (which is taxed at a lower rate) only applies if you’ve owned the property for more than a year. However, with inherited property, the IRS automatically treats it as a long-term asset, regardless of how long you’ve actually owned it. This is a key advantage for many heirs who choose to sell.
That said, the value of the property is “stepped up” to its fair market value at the time of the original owner’s death. This means if you sell it shortly after inheriting it, you might owe little to no capital gains tax—since the sale price would likely be close to that stepped-up value.
While this holding period classification typically doesn’t prevent you from selling the home right away, it’s still wise to consult with a qualified accountant or tax advisor. They can help you understand any potential tax implications based on your specific situation, such as the date of the original owner’s passing, how much the property is worth now, and any gains realized from the sale.
In short, the holding period won’t stop you from selling—but it can influence how much tax you might owe when you do.
There May Be Other Factors
Although there typically isn’t a legal “holding period” on the inherited property itself that would prevent you from selling, there may be other factors that could temporarily complicate the process. For instance, if the home still has an outstanding mortgage, unpaid property taxes, liens, or other financial obligations tied to the estate, these will usually need to be addressed before the sale can move forward.
In many cases, these issues can be resolved fairly quickly with the help of a real estate professional, estate attorney, or title company. While they might cause short delays, they usually don’t prevent you from selling the property altogether—they just require a few extra steps to clear the title and ensure everything is in order.
So, if you’ve inherited a property and are thinking about selling, and you’re asking, “Is there a holding period before I can sell my inherited home?”—here’s the good news: In most cases, no, you don’t have to wait. Once probate is complete and the title is in your name, you’re typically free to move forward with a sale.
That said, it’s important to be aware of the potential tax implications, especially around capital gains or estate taxes. These won’t necessarily stop the sale, but they can affect your net proceeds. Consulting with a tax professional is a smart move to fully understand your position before listing the home or accepting an offer.
Want to sell quickly without the hassle? We’re here to help. Reach out to us and we’ll make you a fair, all-cash offer to buy your inherited home as-is—no repairs, no commissions, and no delays. It’s a simple, stress-free way to move on from the property and focus on what’s next.