When a loved one passes away in California, their property and assets must be distributed to heirs. California inheritance law with a will determines exactly how this process unfolds, who receives what, and what legal steps must be followed. California’s inheritance process hinges on whether the deceased left a valid will. With a will in place, the estate follows the deceased’s specific instructions. Without one, California succession law steps in through intestate succession.
This guide focuses on the inheritance laws California enforces when a will exists, and how the process differs when there isn’t one. If you’ve inherited property you’d prefer to sell quickly, knowing your legal rights helps you move forward.
Table of Contents:
- What is the California Inheritance Law?
- How Inheritance Works When There is a Will in California
- Who Inherits Property Under a Will in California?
- What Happens If There is No Will (Intestate Succession in California)
- The New California Property Inheritance Law (Prop 19 Explained)
- Do You Pay Taxes on Inherited Property in California?
- Inheriting a House You Don’t Want? Your Options
- Navigating California Inheritance With Confidence
- Frequently Asked Questions
Key Takeaways:
- California inheritance law follows community property and probate rules – determining how estates are divided based on marital status and property ownership.
- With a valid will, the estate follows the deceased’s instructions – giving individuals control over who receives their property after death.
- Without a will, intestate succession decides who inherits – following a strict legal hierarchy that may not match the deceased’s wishes.
- Prop 19 affects how inherited property is taxed – potentially increasing property taxes significantly if heirs don’t move into the home as their primary residence.
- Selling an inherited home can be a fast, stress-free solution – especially when heirs don’t want the property or can’t afford the ongoing costs and responsibilities.
What is the California Inheritance Law?
California inheritance law is the legal framework that governs how a person’s property and assets are distributed after their death. California inheritance law blends probate procedures with community property rules, and Proposition 19 now affects how inherited homes are reassessed for property taxes.
California operates under probate law and community property law. Probate validates wills, settles debts, and transfers assets. Community property law affects married couples, establishing that most assets acquired during marriage are owned equally by both spouses.
Key points of California inheritance law:
- Applies to all estates with real property or valuable assets.
- Distribution depends on whether there’s a valid will or not.
- The probate court oversees asset transfer if required.
- Community property laws protect surviving spouses.
Property Types and Recent Changes
The state recognizes separate property (assets owned before marriage, inheritances, and gifts). How property is distributed depends on whether the deceased left a valid will.
California updated its rules through Proposition 19, changing property tax reassessments for inherited homes. Before deciding about inherited property, understand whether you can sell before probate is granted.
How Inheritance Works When There is a Will in California
When someone dies with a valid will in California, the estate goes through a structured legal process to ensure the deceased’s wishes are honored.
Step 1: The Will is Verified in Probate Court
Probate begins when the executor named in the will files paperwork with the probate court. The court verifies the will’s authenticity, ensuring it was properly signed and witnessed according to California law.
Once validated, the executor receives legal authority to manage the estate, pay debts, and distribute assets to beneficiaries.
Step 2: Debts and Taxes Are Settled
Before any beneficiaries receive their inheritance, the estate must settle all outstanding obligations. The executor uses estate funds to pay off mortgages, credit card debts, medical bills, and any other valid claims.
California does not have a state inheritance tax or estate tax. However, the federal estate tax applies only to estates exceeding $13.99 million per individual in 2025, as determined by the IRS. Thresholds change annually to reflect inflation adjustments. California’s inheritance tax on property primarily affects property tax reassessments, which can significantly
Step 3: Assets Are Distributed to Beneficiaries
Once debts and taxes are paid, the probate court approves the final distribution of assets according to the will’s instructions. The executor transfers property to each named beneficiary.
Common distribution examples include:
- The family home goes to the deceased’s adult child
- A vehicle is transferred to a spouse
- Savings accounts are divided among multiple children
- A charitable donation is made to a named organization
- Personal belongings like jewelry go to specific family members
Step 4: Real Estate Transfers Under a Will
To perfect the title, record the correct document for the type of transfer. For joint tenancy or Transfer on Death deed, file an Affidavit of Death along with the death certificate. For probate distributions, record the court order and executor’s deed transferring the property, and file the PCOR with the county at the same time.
Who Inherits Property Under a Will in California?
When a valid will exists, the deceased has significant control over who inherits their estate. Beneficiaries can include individuals, charities, or organizations. Some may receive specific gifts (a house or car), while others receive a share of the estate’s remainder.
Common beneficiaries include:
- Spouse or domestic partner: Often receives the largest share, especially of community property and the family home.
- Children (biological or adopted): Frequently named as primary beneficiaries, with assets divided equally or according to specific instructions.
- Other named heirs: Parents, siblings, close friends, or extended family members can inherit if specifically included in the will.
- Charities or organizations: Many people leave portions of their estate to causes they supported during their lifetime.
The will can specify exactly what each person receives, whether that’s a specific dollar amount, a particular piece of property, or a percentage of the total estate.
Who Has More Rights: Spouse or Child in California?
In California, a surviving spouse automatically owns half of all community property, while the deceased’s will governs only their half and any separate property.
What qualifies as separate property:
- Assets owned before marriage
- Inheritances received by only one spouse
- Gifts specifically given to one spouse
- Property acquired after legal separation
Example scenario: A house purchased before marriage is separate property. The will can leave it to a child from a previous marriage without the current spouse having automatic rights. A home bought together during marriage is community property. The surviving spouse automatically owns half, and the will can only distribute the deceased’s half. Children can contest if they believe they were unintentionally omitted.
What Happens If There is No Will (Intestate Succession in California)
When someone dies without a will, California’s intestate succession law determines who inherits, following a strict order starting with the spouse, then children, parents, and siblings. The California Probate Code Sections 6401–6402 establish exactly who inherits and in what order.
When there is no will, California law distributes assets according to this hierarchy:
Surviving spouse → Children → Parents → Siblings → Extended relatives
Who Inherits Under Intestate Succession
The table below shows how California divides community and separate property when no will exists, based on which family members survive the deceased, according to California Probate Code § 6401–6402.
| Family Situation | Who Gets Community Property | Who Gets Separate Property |
| Spouse only (no children, parents, or siblings) | Spouse: 100% | Spouse: 100% |
| Spouse + one child or grandchild | Spouse: 100% | Spouse: 50%Child/Grandchild: 50% |
| Spouse + multiple children | Spouse: 100% | Spouse: 33% Children: 67% (divided equally) |
| Spouse + no children (parents alive) | Spouse: 100% | Spouse: 50% Parents: 50% |
| Spouse + no children or parents (siblings alive) | Spouse: 100% | Spouse: 50%<br>Siblings: 50% (divided equally) |
| Children only (no spouse) | Children: 100% (divided equally) | Children: 100% (divided equally) |
| Parents only (no spouse, children, or siblings) | Parents: 100% | Parents: 100% |
| Siblings only (no spouse, children, or parents) | Siblings: 100% (divided equally) | Siblings: 100% (divided equally) |
Important Limitation
Stepchildren and unmarried partners aren’t automatically included in intestate succession unless they were legally adopted or registered as domestic partners. Without a will, these relationships receive nothing under California succession law.
The New California Property Inheritance Law (Prop 19 Explained)
Proposition 19 represents a major change in new California property inheritance law. Approved by voters in November 2020 and effective February 16, 2021, Prop 19 significantly altered how property taxes work when real estate passes from parents to children.
Before Prop 19, children could inherit their parents’ home and keep the same low property tax base, even if they never lived there. This allowed heirs to rent out inherited properties while paying property taxes based on decades-old assessments.
The New Rules
Now, to keep the low property tax rate, the heir must move into the inherited home and use it as their primary residence within one year. If the home becomes a rental or second home, the county assessor reassesses it at the current market value.
Key points about Prop 19:
- Proposition 19 effective date: February 16, 2021. Properties inherited before this date follow the old rules.
- The exclusion applies to a family home that was the transferor’s principal residence and becomes the transferee’s principal residence within one year, or to a family farm.
- Only parent-to-child and limited grandparent-to-grandchild transfers qualify.
- Inherited rental or vacation homes are reassessed at market value. If you don’t move in, expect significantly higher property taxes.
For many heirs who already own homes or live far away, the higher property taxes make selling a better financial choice.
Do You Pay Taxes on Inherited Property in California?
California has no state inheritance or estate tax. Heirs receive their inheritance without paying California state taxes on the transfer itself.
Federal estate tax applies only to estates exceeding $13.99 million per individual in 2025, as determined by the IRS. Thresholds change annually to reflect inflation adjustments.
Property Tax Reassessment
Thanks to Prop 19, county assessors may reassess inherited real estate at current market value, significantly increasing annual property taxes. This happens unless you move into the home as your primary residence within one year.
Capital Gains Tax Considerations
Inherited property receives a “stepped-up basis,” resetting the tax basis to fair market value on the date of death. You only pay capital gains tax on appreciation after you inherit.
Example: Parents bought a house in 1985 for $150,000. You inherited it in 2024, worth $800,000. Your new basis is $800,000. Selling for $810,000 means you only pay tax on the $10,000 gain.
The stepped-up basis applies whether the property passes through a will, trust, or intestacy, aligning with IRS rules that reset fair market value at the date of death.
Inheriting a House You Don’t Want? Your Options
Not every inheritance is a blessing. Sometimes, an inherited house comes with more problems than benefits. High property taxes, needed repairs, distance from where you live, or emotional difficulty can all make keeping the property impractical.
For a detailed comparison, read our guide on whether to sell or keep an inherited house in California.
Option 1: Keep and Maintain the Property
Keeping an inherited home means taking on all ownership responsibilities. You’ll pay property taxes, homeowner’s insurance, utilities, and maintenance costs. If the home needs repairs or updates, those expenses come out of your pocket.
This option works best when:
- The home is mortgage-free or has minimal debt
- You plan to move in and qualify for Prop 19 tax benefits
- The property is in excellent condition, requiring little maintenance
- You have the financial resources to cover ongoing costs
Option 2: Rent It Out
Renting the inherited property can generate monthly income, but it transforms you into a landlord with all the responsibilities that entail. You’ll manage tenant relationships, handle repairs, deal with late payments or evictions, and pay higher property taxes.
California’s landlord-tenant laws heavily favor tenants, making evictions difficult and time-consuming. Rental income is also taxable, and you’ll need to track expenses carefully for tax purposes.
This option works best when:
- The property is in a strong rental market
- You’re comfortable being a landlord or can afford property management
- You want to keep the property in the family long-term
- The rental income significantly exceeds your costs
For more information, check out our guide on whether you should rent or sell your California property.
Option 3: Sell It As-Is for Cash
For many heirs, selling is the most practical solution. It converts the inherited property into liquid cash you can use immediately, eliminates all ongoing costs and responsibilities, and allows you to move forward without the burden of managing unwanted property.
Osborne Homes buys inherited houses in any condition across California. You don’t make repairs, you don’t pay realtor commissions, and you don’t deal with showings or open houses. We handle everything and close fast, typically in as little as three weeks.
For homeowners deciding between repairs and selling, our article on whether to fix your house or sell as-is provides valuable insights. If you’ve inherited a property you don’t want, request a free cash offer today and move on with peace of mind.
Navigating California Inheritance With Confidence
California inheritance law with a will helps families avoid confusion, reduce conflict, and prevent costly mistakes during an already difficult time. When you know how probate works, who has rights to what property, and how taxes affect inherited real estate, you make informed decisions that protect your financial future.
For many heirs, inherited property becomes more of a burden than a benefit. When maintenance costs mount, property taxes increase, or the emotional weight becomes overwhelming, selling offers a path forward. Osborne Homes provides a simple, fast solution for California homeowners who need to sell inherited property quickly.
Frequently Asked Questions
Who inherits property in California if there is a will?
When a valid will exists, assets are distributed according to the deceased’s wishes. The executor handles the process through probate, ensuring beneficiaries, such as a spouse, children, or named heirs, receive what’s listed in the will.
What happens if there’s no will in California?
If someone dies without a will, California’s intestate succession law decides who inherits. Assets typically go first to the surviving spouse, then to children, and then to parents or siblings if no spouse or children exist.
Who has more rights, a spouse or a child, under California inheritance law?
California is a community property state, so a surviving spouse automatically owns half of community assets. Separate property, however, can be divided according to the will, or if there’s no will, shared between the spouse and children based on succession laws.
Does California have an inheritance or estate tax?
No. California does not have a state inheritance or estate tax. However, very large estates may still owe federal estate taxes, and inherited property can be subject to capital gains tax if sold later.
What is the new California property inheritance law (Prop 19)?
Proposition 19 limits how children can inherit a parent’s home without a property tax increase. To keep the same low tax base, the heir must use the home as their primary residence; otherwise, the property is reassessed at market value.
Can I sell a house I inherited in California?
Yes. If you’ve inherited a home you don’t plan to live in, you can sell it. Osborne Homes buys inherited properties as-is for cash, with no repairs, showings, or agent fees, making it easy to move on quickly.
What happens if I inherit a house in a trust instead of through a will?
Inheriting a house in a trust in California typically bypasses probate court, allowing for faster transfer of property to beneficiaries. The successor trustee manages the trust administration process and distributes assets according to the trust’s terms.
