Inheriting a home can feel like a gift, a responsibility, or a burden—and sometimes all three. If you’ve recently inherited property in New Jersey, especially in high-cost areas like Bergen County, it’s important to understand your options and responsibilities before making any big decisions.
This guide walks you through the key steps to take when you inherit a home, including probate basics, taxes, and how to decide whether to keep or sell the property.
📖 Step 1: Determine If the Home Must Go Through Probate
In New Jersey, most inherited homes must pass through probate—a legal process that validates the will and authorizes the executor to transfer assets.
- If there’s a will: The executor named in the will must file it with the Surrogate’s Court in the county where the deceased lived.
- If there is no will: The court will appoint an administrator and distribute assets based on NJ intestacy laws (closest next of kin).
Some assets may avoid probate (e.g. homes in trusts, or those with a transfer-on-death designation), but most standard home transfers will go through this process.
Tip: Bergen County residents can file at the Bergen County Surrogate’s Court in Hackensack. Each county has slightly different procedures and fees.
📃 Step 2: Understand Outstanding Debts and Liens
Before you can transfer or sell an inherited home, you need to understand what comes with it. This includes:
- Outstanding mortgage balances
- Property taxes owed
- Utility bills
- Potential tax liens or judgments
If the estate doesn’t have enough assets to pay off debts, the home may need to be sold to satisfy those obligations.
🏡 Step 3: Decide Whether to Keep, Rent, or Sell the Home
Once the legal process is underway, you’ll need to make a decision about the future of the property:
Option A: Keep It
- May involve refinancing if there’s a mortgage
- You’ll be responsible for maintenance, taxes, and insurance
- May be suitable if you plan to live there
Option B: Rent It Out
- Can generate income but also comes with landlord responsibilities
- May require repairs, upgrades, or insurance changes
- Check local zoning and rental rules in NJ
Option C: Sell It
- Avoids long-term expenses and maintenance
- Can pay off debts and distribute cash to heirs
- Can be sold as-is if you don’t want to make repairs
Many heirs choose to sell if the home needs work, is far from where they live, or is shared among multiple beneficiaries.
In some cases, selling is simply the most practical choice. If there are multiple heirs and the sale proceeds are being divided several ways, the individual payouts may be modest. Holding on to the property for a small monthly gain or occasional use may not be worth the administrative burden. Likewise, if heirs are out of state and don’t have the time or resources to coordinate repairs, clean-outs, or property management, a quick sale can help everyone move forward with less stress.
🚪 Step 4: Be Aware of Capital Gains Taxes
The good news: When you inherit a property, you get a stepped-up cost basis. That means your tax liability is based on the home’s value at the time of death — not what the original owner paid.
This reduces capital gains tax if you sell the home shortly after inheriting it.
Example: Your parents bought the home for $120K in 1980. At the time of death, it’s worth $480K. If you sell it for $490K, you may only owe taxes on the $10K gain—not the $370K difference.
Always consult with a CPA or tax attorney to understand the exact implications in your case.
🚪 Step 5: Consider Selling As-Is
Many inherited homes are older, in need of repairs, or filled with years of belongings. If you’re not up for renovations or listing it traditionally, selling the property as-is may be a better option.
I help heirs in Bergen County and surrounding areas:
- Evaluate current market value
- Sell without repairs or showings
- Coordinate with attorneys, executors, or out-of-state heirs
You can still walk away with your equity—without the overwhelm.
✉️ Need Help Selling an Inherited Home in NJ?
Whether you’re in the early stages of probate or ready to list, I can help you make an informed decision that respects your family, time, and bottom line.
Reach out for a pressure-free consultation and let’s talk through your options.
This article is for informational purposes only and does not constitute legal or financial advice. Please consult with an attorney or CPA for personalized guidance.