Selling a property held in a trust or moving through probate is not a normal listing. There are duties owed to beneficiaries, a valuation date that governs the tax outcome, disclosure obligations that differ from an ordinary sale, and usually a family navigating all of it while grieving. I work with trustees, executors, heirs and estate attorneys across San Mateo County on exactly these sales.
Get the date-of-death appraisal first
This is the single most common and most expensive mistake I see. When someone inherits California real property, the cost basis generally steps up to fair market value as of the date of death. That step-up is what protects heirs from capital gains on decades of appreciation — and on the Peninsula that appreciation is frequently seven figures.
If nobody establishes value at the date of death, that basis becomes an argument rather than a fact. Get the appraisal before the property is listed, not after it sells. Full detail here: stepped-up basis and the inherited Peninsula home.
Stepped-up basis is not the same as property tax
These get conflated constantly. Stepped-up basis affects capital gains. Whether the property is reassessed for property tax is a separate question governed by Proposition 19, and the answer usually turns on whether an heir makes it their primary residence. A family can get the basis question right and still be surprised by the tax bill. See the trustee’s guide to avoiding a tax surprise.
For wills and trusts attorneys
Much of my referral work comes from estate attorneys who need a broker who will not create problems for them. What that means in practice:
- I coordinate with you and the CPA before anything is listed, not after a decision has already been made.
- I document condition and value carefully, because trustee decisions get second-guessed by beneficiaries.
- I understand that the highest offer is not automatically the right one when a fiduciary duty is involved — see vetting estate sale offers.
- I am comfortable with court confirmation timelines, occupied properties, deferred maintenance and multi-beneficiary disagreement.
- I keep every party informed in writing, which protects the trustee and protects you.
Deeper reading for practitioners: selling inherited or trust property in San Mateo County and the Peninsula probate coordination playbook.
Keep it or sell it?
Not every inherited property should be sold. Sometimes retaining and renting is the better outcome, particularly where a beneficiary intends to occupy it. The analysis has to account for the basis step-up, Proposition 19 reassessment risk, realistic rent, condition and the family’s actual appetite for being landlords. I will model it honestly: keep or sell the inherited home.
Typical sequence
- Confirm authority — trustee powers, Letters, or court requirements.
- Date-of-death appraisal.
- Condition assessment and a decision on what preparation is worth doing.
- Coordinate with the attorney and CPA on timing and tax exposure.
- Clear the property, prepare, list and manage offers with the fiduciary standard in mind.
- Close, with documentation the trustee can show beneficiaries.
Common questions
Do we need probate? Often not, if the property was properly held in trust. Your estate attorney is the right person to confirm.
Should we clear the property before valuing it? No — value first. Removing contents before an appraisal can complicate the record.
How long does a trust sale take? A straightforward trust sale runs close to a normal timeline. Court-confirmed probate sales take considerably longer.
Who should we talk to about the tax? Your CPA and estate attorney. This page is general education, not tax or legal advice.
Talk it through
If you are a trustee, an heir, or an attorney with a client holding Peninsula property, call me at 650.576.9565 or get in touch. There is no cost to the conversation and no obligation to list.
Mark Tauber, Broker Associate, Coldwell Banker Global Luxury, Burlingame CA. DRE# 01173294. I regularly help trustees, heirs and estate attorneys across San Mateo County coordinate trust and probate property sales. This page is general education, not tax or legal advice.