To transfer a deed when inheriting real estate, start with the current recorded deed: how the decedent held title decides whether you record a short survivorship filing, follow a trust document, or wait for a probate court to authorize a new deed in your name. Until a new deed is recorded, the property stays tied to the estate, and you cannot sell it, refinance it, or insure it as the owner.
Start With the Current Deed
Before drafting anything, pull the most recent deed at the county recorder’s office and read exactly how the decedent owned the property. That one detail dictates the entire path. Most counties let you search deeds online by owner name or parcel identification number. Getting this wrong at the outset can push you into months of unnecessary court proceedings, or worse, into recording a deed a clerk will reject.
The Transfer Path Depends on How Title Was Held
Joint Tenancy With Right of Survivorship
If the deed reads “joint tenants with right of survivorship,” the surviving owner already holds the property by operation of law. No probate is needed. The survivor files an affidavit of survivorship along with a certified copy of the death certificate at the county recorder’s office. Once recorded, the public record reflects the surviving owner’s sole interest. This path usually wraps up in days.
Tenancy in Common
Tenancy in common works differently. A deceased co-owner’s share does not pass automatically to the surviving co-owner. It becomes part of the decedent’s estate and must go through probate or trust administration before it can be transferred to an heir. This catches siblings and business partners off guard when they assume the survivor simply inherits the other half.
Sole Ownership
Property held in one person’s name alone must go through probate unless it was placed in a living trust or covered by a transfer-on-death deed. The probate court appoints a personal representative, who then has legal authority to sign a new deed transferring the property to the rightful beneficiary.
Transfer-on-Death Deeds
Around 32 states allow property owners to record a transfer-on-death deed naming a beneficiary who receives the property automatically at the owner’s death, bypassing probate. If the decedent recorded one, the beneficiary files the death certificate with the county recorder along with a new deed confirming the transfer. Confirm the TOD deed was never revoked; these instruments can be cancelled at any time before death. Check for one early. Finding it can save you the entire probate timeline.
Property Held in a Living Trust
Real estate placed in a revocable living trust also avoids probate. The successor trustee named in the trust document has authority to record a new deed from the trust to the beneficiary, along with a copy of the death certificate and the relevant trust provisions. This is typically faster and cheaper than probate, though the trustee must still handle outstanding debts and taxes before distributing the property.
Documents to Gather Before Drafting
Certified Death Certificates
Order multiple certified copies from the state’s vital records department. You will need them for the county recorder, the probate court, lenders, insurance companies, and possibly the IRS. Three to five copies is a reasonable starting point; estates with several properties or accounts may need more.
Letters Testamentary or Letters of Administration
For properties passing through probate, the court issues either letters testamentary (when there is a will) or letters of administration (when there is not). These documents prove to the recorder that the person signing the new deed has court-approved authority to act on behalf of the estate.1Legal Information Institute. Letters of Administration Without them, the recorder will reject the deed.
An Estate EIN if the Property Will Generate Income
If the estate will produce any income, such as rent from the property before it’s transferred, the personal representative needs a federal Employer Identification Number for the estate. You can apply free on IRS.gov using Form SS-4.2Internal Revenue Service. Information for Executors The representative should also file Form 56 to notify the IRS of the fiduciary relationship.3Internal Revenue Service. Instructions for Form 56
The Full Legal Description
Every deed must include the property’s full legal description using metes and bounds, lot and block numbers, or government survey coordinates. This is far more precise than a mailing address and must match the previous deed exactly. A small transcription error in a township, range, or section number can lead to a rejected recording or a title defect that lingers for years. Copy the description directly from the prior deed rather than trying to recreate it.
A Date-of-Death Appraisal
A professional appraisal setting the property’s fair market value on the date of death does two things. It sets the new tax basis for future capital gains calculations, and it gives the estate documentation if the IRS or another heir challenges the value. Order it early. The probate court, the IRS, or a buyer’s lender will eventually ask for it.
Beneficiary Information
Collect full legal names, current addresses, and Social Security numbers for every beneficiary who will appear on the new deed. If multiple heirs will hold the property together, they need to decide in advance how to hold title, typically as joint tenants or tenants in common. Getting this wrong means re-drafting and re-recording, at additional cost.
Drafting and Signing the New Deed
The type of deed matches who is signing. An executor’s deed is used when a will named the representative. An administrator’s deed is used when the court appointed one. In trust transfers, the successor trustee signs a trustee’s deed. Forms are available through county recorder websites and legal document providers.
The estate representative is listed as the grantor, acting in their official capacity as authorized by the probate court or trust document. The beneficiary is named as the grantee, and the name must appear exactly as it does on their legal identification. The deed also states the consideration; since no money is changing hands, this is usually a nominal amount like ten dollars or a recital that the transfer is by inheritance.
Once the deed is complete, the grantor signs it before a commissioned notary. Notarization verifies identity and is required for any document that will be recorded in the public land records. Most states cap notary fees at $25 or less per signature, with many setting the limit between $2 and $10. Remote online notarization typically costs more.
Recording the Deed
The signed and notarized deed goes to the county recorder or registrar of deeds, either in person or by certified mail. Recording fees usually run between $10 and $50 for a standard document. Many jurisdictions require supplemental forms with the deed, such as a change of ownership report or a transfer tax affidavit, which help the local assessor decide whether to reassess the property. Some counties also require compliance certifications before accepting the deed. A clerk reviews the filing, then stamps it with a recording number. Processing time ranges from a few days to several weeks. Once recorded, the original is mailed back to the new owner or their attorney, and the public record reflects the updated ownership.
Mortgages That Come With the Property
Inheriting a property does not make its mortgage disappear. If the decedent had an outstanding loan, you need to address it before assuming full control.
Standard Mortgages
Many mortgages include a due-on-sale clause that technically lets the lender demand full repayment when ownership changes. Federal law overrides that clause for inherited property. Under the Garn-St. Germain Act, a lender cannot call the loan due when the transfer results from a borrower’s death and the property passes to a relative. The same protection applies when a spouse or child becomes an owner, or when title passes by operation of law after a joint tenant dies.4Office of the Law Revision Counsel. 12 USC 1701j-3 – Preemption of Due-on-Sale Prohibitions You can keep paying the existing mortgage without the lender forcing a payoff. You still have to make the payments.
Reverse Mortgages
Reverse mortgages work differently. The loan becomes due and payable after the borrower and any eligible co-borrower or non-borrowing spouse have died. Once heirs receive the due-and-payable notice, they have 30 days to decide whether to keep the home, sell it, or turn it over to the lender. Extensions of up to six months may be available to allow time for a sale or refinance. To keep the home, heirs must pay the full loan balance, usually by obtaining their own financing. If the balance exceeds the home’s value, heirs can satisfy the debt by selling for at least 95 percent of the appraised value.5Consumer Financial Protection Bureau. With a Reverse Mortgage Loan, Can My Heirs Keep or Sell My Home After I Die?
Debts That Can Reach the Property
A personal representative who rushes to transfer property before estate debts are settled can end up personally on the hook for the shortfall. Every state sets a creditor claim period after probate opens, often three to six months, during which known and unknown creditors can file claims. Distributing property before that window closes is one of the fastest ways to create personal liability for an executor.
Medicaid Estate Recovery
If the decedent received Medicaid-funded long-term care, federal law requires the state to seek repayment from the estate. Recovery applies to individuals who were 55 or older when they received benefits and covers nursing home services, home-and-community-based services, and related hospital and prescription drug costs. A Medicaid lien can consume the entire value of an inherited home. The state cannot pursue recovery while a surviving spouse is alive, or when a surviving child is under 21, blind, or permanently disabled.6Office of the Law Revision Counsel. 42 USC 1396p – Liens, Adjustments and Recoveries, and Transfers of Assets
Additional protections apply when a sibling with an equity interest lived in the home for at least a year before the recipient entered a facility, or when an adult child lived there for at least two years and provided care that delayed institutionalization. States must also waive recovery when it would cause undue hardship. Check with the state Medicaid agency early. Discovering a claim after the deed is recorded creates a much bigger problem.
Tax Consequences of the Transfer
Stepped-Up Basis
One of the most valuable tax features of inherited property is the stepped-up basis. Instead of carrying over the price the decedent paid decades ago, your tax basis resets to the property’s fair market value on the date of death.7Office of the Law Revision Counsel. 26 USC 1014 – Basis of Property Acquired From a Decedent Sell soon after inheriting, near the appraised value, and you owe little or no capital gains tax. Hold the property longer and any appreciation above the stepped-up basis becomes taxable when you sell.
If the estate’s executor filed a federal estate tax return and elected the alternate valuation date six months after death, your basis is the value on that alternate date. If you receive a Schedule A to Form 8971 from the executor, you are generally required to report a basis consistent with the value used for estate tax purposes; reporting a higher basis can trigger an accuracy-related penalty.8Internal Revenue Service. Gifts and Inheritances
Federal Estate Tax
Most estates will not owe federal estate tax. For deaths in 2026, the filing threshold is $15,000,000.9Internal Revenue Service. Estate Tax Only estates above that amount file Form 706. Some states impose their own estate or inheritance taxes at much lower thresholds, so check state rules separately.
Property Tax Reassessment
The transfer itself can trigger a property tax reassessment. Many jurisdictions reassess inherited property at current market value, which can sharply increase the annual tax bill if the decedent bought decades ago. Some states exempt transfers between parents and children or between spouses, but the rules vary widely. The change of ownership report filed with the deed is what alerts the assessor, so check for available exemptions before recording. Missing an exemption at filing can mean years of inflated property taxes before you catch it.
Title Insurance for the New Owner
The decedent’s existing title policy does not automatically protect you. A prior owner’s policy covers claims that arose before it was issued, but it was written for the original insured, not for their heirs. If you plan to keep the property, a new owner’s title policy protects you against undiscovered liens, boundary disputes, and defects in the chain of title that may surface later. If you sell shortly after the transfer, the buyer’s lender will require a new policy anyway, and the buyer typically pays. For heirs planning to hold long-term, a new policy costs modestly against the risk of an uninsured title defect appearing years later.