Probate & Trust Home Sales in Orange County

By Ramez Malki, Broker — C&R Properties  |  Updated October 26, 2026

When a parent or loved one passes away, the house is usually the biggest asset, and the hardest to deal with. Executors, administrators, trustees and heirs need to know which rules apply, how long it will take and what it will cost. C&R Properties helps Orange County families sell, keep or buy out inherited homes through probate and trust administration, and we work with experienced probate attorneys throughout the process. This page explains how it works.

1. Probate or trust? The first question

How you sell depends on how the home was titled when the owner died:

If the home was supposed to be in the trust but the deed was never transferred, an attorney may be able to file a Heggstad petition (Probate Code §850) asking the court to confirm it belongs to the trust, which can avoid a full probate.

2. Probate sales: full authority vs. court confirmation

Under the Independent Administration of Estates Act (IAEA), the court can give the personal representative full authority or limited authority. That decision shapes the entire sale.

Full IAEA authority: no court hearing

• The representative accepts an offer and sends a Notice of Proposed Action to heirs and beneficiaries at least 15 days before the sale closes, stating the price and the commission.
• If no one objects, escrow closes like a regular sale. There’s no 90%-of-appraisal floor, no published notice and no overbidding.
• If a beneficiary objects in writing, the sale must go to court for confirmation.
• Typical time from accepted offer to close: about 45 to 75 days.

Limited authority or no IAEA: court confirmation

• The home is appraised by a court-appointed probate referee (the appraisal must be within one year of the hearing). The accepted offer must be at least 90% of the appraised value.
• The listing agreement can run no more than 90 days at a time, and the court approves the commission.
• After the representative accepts an offer, the attorney files a report of sale and petition for confirmation, and notice of the sale is typically published.
• At the hearing, anyone can overbid. The first overbid must be at least the accepted price plus 10% of the first $10,000 plus 5% of the rest. On a $300,000 accepted offer, the minimum opening overbid is $315,500; on $1,000,000 it’s $1,050,500. Overbidders typically bring a cashier’s check for 10% of their bid.
• The judge confirms the highest qualified bid, and the buyer must close on the court’s terms, usually as-is with no contingencies.
• Typical time from accepted offer to close: about 90 to 150 days or more, depending on the court calendar.

3. Trust sales

A successor trustee can usually sell without court involvement if the trust gives them the power to sell, which nearly all do. The steps:

1. Notify beneficiaries and heirs within 60 days of the death (Probate Code §16061.7). They have 120 days after notice to contest the trust.
2. Record an affidavit of death of trustee and gather a certification of trust for the title company.
3. Get a date-of-death appraisal for the stepped-up tax basis.
4. Prepare, list and sell like a standard sale, keeping beneficiaries informed. Many trustees wait out the contest period or get beneficiaries’ written consent first.

A revocable living trust becomes irrevocable at the owner’s death (or, in some trusts, at incapacity), which is when the successor trustee’s duties begin.

4. Conservatorship sales

If a living owner can’t manage their affairs and a court has appointed a conservator of the estate, selling the conservatee’s home generally requires court confirmation, much like a probate sale, plus notice requirements specific to the conservatee’s residence. Ask the conservator’s attorney early; these sales take the most planning.

5. Disclosures in probate and trust sales

Probate sales and most trustee sales are exempt from the Transfer Disclosure Statement, because the seller usually never lived in the home. Exempt doesn’t mean silent. The estate or trustee must still disclose known material facts and typically provides:

• An exempt seller disclosure (encouraged) describing what the representative knows
• Natural hazard zone information
• Smoke and carbon-monoxide detector and water-heater bracing compliance
• Lead-based paint disclosure for homes built before 1978
• The Megan’s Law notice and other statutory notices

Exception: an individual trustee of a revocable trust who lived in the home or owned it within the last year must give a TDS. See our full seller disclosure guide.

6. Taxes: step-up in basis and how title was held

• Inherited property generally receives a stepped-up basis equal to its value at the date of death. If the home sells soon after, there’s usually little or no capital gain.
• Community property held by a married couple can receive a full step-up on both halves at the first spouse’s death. Joint tenancy generally steps up only the deceased spouse’s half. For a long-held Orange County home, that difference can be very large.
• Selling costs (commission, repairs to sell, escrow) reduce any gain.
• More detail: California home-sale taxes.

7. Property tax and Prop 19: keep, rent or sell?

A child who inherits a parent’s home keeps the parent’s low property tax base only if they make it their principal residence, and only up to $1,044,586 above that base (for transfers through February 15, 2027). Rented or kept as a second home, it’s reassessed to market value. Whether the home is in probate or a trust doesn’t change this. Full details and examples are in our Prop 19 guide.

Keeping the home? If one heir wants the house, they can buy out the others’ shares, often with a cash-out refinance after the transfer. Lendia finances heir buyouts and loans for heirs moving into an inherited home.

8. Medi-Cal estate recovery

If the deceased received Medi-Cal benefits at age 55 or older, the state may seek repayment from the estate. Since 2017, California limits recovery to assets that go through probate, so a home held in a funded living trust is generally protected. Recovery is deferred while a surviving spouse is alive, and hardship waivers are available. Talk to the estate’s attorney before you list.

9. Typical timeline

Timelines vary with court calendars, family agreement and the condition of the home.

10. What to do first

1. Secure the home: change locks, keep insurance in force (tell the insurer it’s vacant), and keep utilities on.
2. Find the will, trust and deed, and contact a probate or trust attorney.
3. Don’t remove or give away contents until the attorney and the family agree.
4. Ask for a broker’s opinion of value or date-of-death appraisal.
5. Decide as a family whether to sell, keep or buy out, before anyone spends money on repairs.

Ready to talk it through? Call Ramez Malki at (949) 885-6885. The first conversation is free and confidential.

Frequently Asked Questions

Can you sell a house during probate in California?

Yes. The court-appointed executor or administrator can sell. With full IAEA authority, they give beneficiaries a Notice of Proposed Action at least 15 days before closing. Without it, the sale needs court confirmation and is open to overbids.

How long does a probate home sale take in Orange County?

After the representative has authority, a full-IAEA sale often closes about 45 to 75 days after an offer is accepted. Court-confirmed sales commonly take 90 to 150 days or more because of the hearing.

What is the minimum overbid in a California probate sale?

The first overbid must be at least the accepted price plus 10% of the first $10,000 and 5% of the remaining amount. On a $300,000 accepted offer, the minimum overbid is $315,500.

Does a successor trustee need court approval to sell a house?

Usually not, if the trust gives the trustee the power to sell. The trustee must notify beneficiaries and heirs within 60 days of the death.

Do probate sales require seller disclosures?

Probate sales are exempt from the Transfer Disclosure Statement, but the estate must still disclose known material facts and provide required items such as natural hazard, smoke and CO detector, water-heater and lead-paint disclosures.

Can one heir keep the house and buy out the others?

Yes. An heir can buy out the other beneficiaries’ shares, often with a cash-out refinance. Lendia can finance heir buyouts.

Does Medi-Cal take the house after death in California?

California can seek recovery only from assets that pass through probate, for recipients who were 55 or older. A home in a funded living trust is generally protected, and recovery is deferred while a surviving spouse is alive.

This article is general information, not legal or tax advice. Laws and figures change; confirm details for your situation with a qualified California attorney or CPA. Ramez Malki is a real estate broker and mortgage professional, not an attorney or tax advisor.