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

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

Take a breath first. The house is not going anywhere, and nothing has to be decided this week. The lights stay on, the mortgage company cannot demand instant payoff just because the owner died, and you have time to get organized.

Texas is actually one of the friendlier states to inherit property in. Its courts favor “independent administration,” which keeps judges out of most day-to-day estate decisions, and it offers shortcuts - like probating a will as a muniment of title - that other states simply do not have.

What happens next depends on whether there is a will, how the deed was written, and whether the owner set up a trust or a transfer on death deed. And if you live in another state, which is extremely common with inherited Texas property, all of this can be handled remotely.

Does it go through probate?

Often, but frequently in a light-touch form. The off-ramps first:

• Living trust. A house held in a revocable living trust passes outside probate. The successor trustee can transfer or sell it directly.
• Transfer on death deed. Texas has allowed TOD deeds since 2015. If one was recorded before death, the named beneficiary takes the house without probate.
• Survivorship agreements. Spouses (and sometimes other co-owners) with a right-of-survivorship agreement pass title automatically to the survivor.
• Muniment of title. A Texas specialty: if there is a valid will and the estate has no unpaid debts other than those secured by real estate, the court can admit the will “as muniment of title” - no executor is appointed, and the will itself becomes the transfer document. It is often done in four to six weeks and works especially well when the main asset is a house.
• Small estate affidavit. For intestate estates (no will) worth $75,000 or less, excluding the homestead and exempt property, heirs can use a court-approved small estate affidavit. For real estate it only transfers the homestead, and only to a surviving spouse or minor children who lived there - so its use for houses is narrow.

If there is a will naming an independent executor, the normal path is independent administration: one court hearing to admit the will, then the executor manages everything - including selling the house - without further court supervision. Without a will, heirs can often agree to an independent administration too; otherwise a court-supervised (dependent) administration applies.

One deadline worth knowing: a will generally must be filed for probate within four years of death.

The Texas probate timeline

Texas probate is fast by national standards:

1. Filing (weeks 1-2). The will and application are filed in the county where the person lived. A short waiting period applies before the hearing.
2. Hearing and letters (weeks 3-8). At a brief hearing, the court admits the will and issues letters testamentary. This is the document banks and title companies want.
3. Notices and inventory (months 2-4). The executor publishes notice to creditors and files an inventory (or affidavit in lieu of one).
4. Administration and sale (months 2-12). In an independent administration the executor pays debts, handles taxes, and can sell the house whenever it makes sense.

A simple independent administration is often wrapped up in 6 to 12 months. A muniment of title case can be done in one to two months. Dependent (court-supervised) administrations and will contests take considerably longer.

Taxes when you inherit

The headline: Texas has no state inheritance tax and no state estate tax. You owe Texas 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 your father paid $60,000 for a house now worth $400,000, your basis becomes $400,000. Sell it soon after for about that amount and there is little or no capital gains tax - decades of appreciation are never taxed. This is federal law and applies everywhere.

Two Texas-specific notes:

• Property taxes. Texas property taxes are high, and any homestead exemption and senior tax ceiling the deceased owner had will generally fall away once the home is no longer an owner’s primary residence. If you keep the house vacant or rent it out, budget for a noticeably higher tax bill.
• Community property. Texas is a community property state. When one spouse dies, the survivor typically gets a basis step-up on the entire community property house, not just half - a significant tax advantage when the survivor later sells.

Can you sell during probate in Texas?

Yes - and more easily than in most states.

• Independent administration (the norm). Once the independent executor has letters testamentary, they can list and sell estate real estate on the open market without asking the court’s permission for the sale, as long as the will or the Estates Code authorizes it. For buyers and title companies this looks close to a normal sale.
• Muniment of title. Title passes directly to the beneficiaries named in the will. Once recorded, they sell as regular owners - no estate administration at all.
• Dependent administration. If the court is supervising the estate, sales of real property need court approval, which adds time and paperwork.
• Heirs without probate. If title passed by TOD deed or survivorship, or vested in heirs through an heirship determination, the owners of record sell like any other sellers - though title companies will want the underlying paperwork done cleanly.

Sale proceeds during an administration belong to the estate first; heirs receive their shares when debts are settled.

If you live out of state

A huge share of inherited Texas homes belong to heirs in other states. It works fine:

• Texas allows out-of-state executors, and filings and hearings can usually be handled through a Texas probate attorney with minimal or no travel.
• The physical side - securing the property, utilities, insurance on a vacant house, clearing out belongings, yard and repairs in a Texas summer - needs boots on the ground.
• 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 your life to Texas for six 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.

You will want two numbers: 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 Texas? A muniment of title case often takes one to two months. A typical independent administration runs about six months to a year. Court-supervised administrations and disputes take longer.

Do I pay taxes on a house I inherit in Texas? No Texas inheritance or estate tax exists, 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.

Can the executor sell the house without the heirs’ approval? An independent executor with power of sale generally can, as part of settling the estate. Heirs are protected by the executor’s fiduciary duty rather than by a veto over each sale.

What if there’s no will? Heirs can use a small estate affidavit (limited, for estates of $75,000 or less), a court determination of heirship, or an administration. Texas intestacy law decides who inherits - and with blended families, the split between a surviving spouse and children can surprise people.

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 the loan is simply paid off from the sale proceeds at closing.