Inheriting a House in Delaware: Probate, Taxes, and Selling

You inherited a house in Delaware - here’s what actually happens

Take a breath first. Nothing about the house has to be decided this week. The property does not disappear, the state does not seize it, and the mortgage company generally cannot demand instant payoff just because the owner died.

Delaware repealed both of its death taxes years ago - the inheritance tax in 1999 and the estate tax for deaths after 2017 - so the tax picture is clean. Probate runs through the Register of Wills in each county, an arm of the Court of Chancery. And as of December 5, 2025, Delaware finally authorizes transfer on death deeds, a shortcut it lacked for decades. What happens next depends on how the owner held title. And if you live out of state, which is common with inherited Delaware property, all of this can be handled remotely.

Does it go through probate?

Not always. The off-ramps:

• Living trust. A house held in a revocable living trust passes outside court. The successor trustee transfers or sells it directly.
• Transfer on death deed - brand new. Delaware enacted a TOD deed law (25 Del. C. chapter 2) effective December 5, 2025. An owner can record a deed naming a beneficiary who takes the house at death without probate. Because the tool is this new, almost no current estates will have one - but going forward it changes Delaware planning, and it is worth checking the recorder of deeds.
• Joint tenancy or tenancy by the entirety. A surviving spouse or co-owner takes title automatically. Married couples commonly hold the home as tenants by the entirety, which passes to the survivor outside probate.
• Small estate affidavit. For estates of personal property worth $30,000 or less (and no solely owned real estate), family members can collect assets by affidavit 30 days after death without opening an estate. It does not transfer a house.

If the house was solely owned without a trust or the new TOD deed, the estate generally goes through the Register of Wills.

The Delaware probate timeline

1. Filing (weeks 1-6). The will and petition are filed with the Register of Wills in the county where the person lived. The executor or administrator is appointed - often at a short in-person appointment.
2. Letters issued (month 1-2). The representative receives “letters testamentary” or “letters of administration” - the document banks, title companies, and buyers ask for.
3. Inventory and creditor period (months 1-8). An inventory is due within a few months. Creditors generally have eight months from death to present claims, which sets the practical floor for closing the estate.
4. Administration and closing (months 8-14). Debts are handled, the house can be sold, and a final accounting closes the estate.

A straightforward estate commonly wraps up in nine months to a year or so, paced by the eight-month creditor window.

Taxes when you inherit

The headline is simple: Delaware has no inheritance tax and no estate tax. The inheritance tax was repealed for deaths after 1998, and the estate tax for deaths after December 31, 2017. You owe Delaware nothing for inheriting. Federal estate tax only applies to estates above $15 million per person (2026), so the overwhelming majority of families never touch it.

The fact that actually saves people money is the stepped-up basis. When you inherit, the house’s cost basis for capital gains resets to its fair market value on the date of death. If a parent paid $75,000 for a house now worth $350,000, your basis becomes $350,000. Sell soon after near that price and there is little or no capital gains tax - decades of appreciation are never income-taxed. This is federal law and applies everywhere.

Two practical notes: Delaware’s realty transfer tax (typically 4% total, split between buyer and seller, with local variation) applies when the house sells and is one of the higher ones in the region - factor it into net-proceeds math. And any senior school property tax credit the deceased owner received ends with their residency.

Can you sell during probate in Delaware?

Yes, in most cases.

• Executor with a power of sale (the common case). If the will grants the executor power to sell real estate, they can list and sell the house on the open market once appointed. To buyers and title companies it looks close to a normal sale.
• Court authority. Where the will is silent or there is no will, Delaware real estate passes directly to the heirs or devisees, and selling within the estate may require their joinder or a petition for authority to sell (often to pay debts). A Delaware probate attorney will know which path fits.
• Sold outside probate. If the house passed by survivorship, a trust, or (going forward) a TOD deed, the new owners of record sell like any other sellers.

Sale proceeds during administration flow into the estate first and are distributed once debts are settled.

If you live out of state

A large share of inherited Delaware homes belong to heirs elsewhere. It works fine:

• Delaware allows out-of-state executors (a resident agent may be required), and filings can usually be handled through a Delaware probate attorney with minimal or no travel.
• The physical side - securing the property, insurance on a vacant house, clearing out belongings, and repairs - needs boots on the ground. Beach-area properties add salt air and rental-season considerations.
• A local agent experienced with inherited and probate sales becomes your proxy: checking on the house, lining up cleanout and contractors, advising on as-is versus fix-first, and running the sale while you manage things from home.

You do not need to relocate to Delaware for months. You need one trustworthy local professional and a real number on the house.

What’s the house worth?

Every path - keep, rent, or sell - starts with an accurate value. Online estimates are least reliable exactly where inherited houses live: original-condition properties in neighborhoods full of remodeled comps, and coastal homes where flood zones and rental income move the number.

You will want the fair market value at the date of death (that sets your stepped-up basis, so document it) and today’s as-is value versus its fixed-up value. The spread between those last two tells you whether repairs are worth it. A local agent can pull all of this for free.

Frequently asked questions

How long does probate take in Delaware? A straightforward estate often takes nine months to a year, paced by the eight-month creditor period. Trust assets, survivorship property, and (for deaths going forward) TOD deed property skip the process entirely.

Do I pay taxes on a house I inherit in Delaware? No. Delaware has no inheritance or estate tax, and federal estate tax only reaches estates over $15 million (2026). With the stepped-up basis, capital gains tax generally applies only to appreciation after the date of death.

Does Delaware allow a transfer on death deed? Yes - newly. Delaware’s Transfer on Death Act took effect December 5, 2025. Owners can now record a TOD deed passing the house outside probate. Estates of people who died before then, or who never recorded one, follow the normal rules.

What happens to the mortgage? It stays attached to the house. Inheriting relatives can generally keep paying it - federal rules block the lender from calling the loan due in most family transfers - or it is paid off from the sale proceeds at closing.

What if my siblings and I disagree about selling? The executor controls the sale during administration where authorized, subject to fiduciary duties. Once heirs own the house jointly, any co-owner can ultimately force a sale through a partition action, though a negotiated buyout or agreed sale is almost always cheaper.