Inheriting a Home in New York? Here’s Everything You Need to Know

Losing a loved one is hard enough without the added complexity of inheriting their home. In New York, this process involves legal steps, financial considerations, and tough decisions—especially if you’re new to it. Whether you’re the sole heir or sharing with family, this guide walks you through probate, taxes, selling, and more, tailored to New York’s unique rules as of 2025.

Inheriting a Home in New York: Key Takeaways

Here’s what you need to know about inheriting a home in New York, from probate to selling:

How does probate work in New York?
Probate validates a will and transfers the home, taking 6-12 months unless the home’s in a trust or co-owned. File with the Surrogate’s Court; an attorney helps if it’s complex.

What happens if there’s no will?
New York’s intestacy laws split the home—spouse gets $50,000 plus half, kids split the rest; no spouse/kids, it goes to parents or siblings. Expect delays and family disputes.

Are there taxes when inheriting?
No inheritance tax, but estates over $6.58 million in 2025 face up to 16% estate tax. Selling? The step-up basis resets value at death, dodging capital gains if sold fast.

Can you sell an inherited home easily?
Yes—one heir can sell after probate; multiple heirs need agreement or a court-ordered partition. “As-is” sales to investors skip repairs, common for fixer-uppers.

What if the home has a mortgage?
You can assume the mortgage, pay it off, or sell; federal law protects against foreclosure if payments continue. Debts come from the estate first.

What Is Probate and When Is It Required?

Probate is the legal process of validating a will and transferring a deceased person’s assets, like a home, to their heirs. In New York, probate is required unless the home was co-owned (e.g., with a surviving spouse) or held in a trust. Small estates under a certain value—$50,000 in 2025—may skip formal probate with a simplified process.

How Long Does Probate Take in New York?

Expect 6 months to a year, though disputes or missing paperwork can stretch it longer. An executor oversees probate, and a real estate attorney can help if things get complicated.

Steps to Navigate Probate as an Heir

File the will with the Surrogate’s Court, settle debts, and transfer the deed. If you’re unsure where to start, a probate lawyer can streamline the process.

Inheriting a Home in New York When There is No Will

As stated before, when there is no will, this becomes a huge mess for those who have inherited the home. When there is no will, the property becomes part of the estate and is distributed according to the “rules of intestacy”. The rules are determined by the Probate Code of the state. In almost every state, the estate would be distributed according to the following rules:

• If there are no children or spouses, the estate is passed to the parents. 
• If there are no surviving parents, then the estate goes to the siblings. 
• If the siblings are no longer with us, then it would go to the nieces and nephews.
• In the event that there are no surviving descendants, then the state is divided in half. It then goes to relatives on the mother’s side of the family and the other half goes to the father’s side of the family. 

If there is a spouse involved, then it becomes a bit more complicated. The estate has to be determined if this is Separate Property or Community Property. 

Separate property was owned by the one who has died before they were married. If there are no children, then the spouse is entitled to the estate. However, if the parents are alive, then they receive half of the property while the spouse gets the other half.  In the event that there is a spouse and children, then the spouse receives one-third of the personal property, the rest is divided among the children.

Community property was obtained during the marriage and is shared. The spouse that has survived gets all the community property as long as there are no other children with a different partner. If there are children from a different partner involved, then half of the community property is going to be given to the children, while the spouse retains the other half. 

Understanding who is entitled to what is a huge part of dealing with an inheritance without a will. However, there will also need to be an affidavit of heirship prepared. This is a legal document that states someone is the rightful heir to the property. It often contains history, genealogy, marital status and the like in order to prove that you are the rightful heir. One this affidavit has been prepared, then the deed and the transfer of title can take place. All of these documents are then filed with the county records and the person has ownership of the home. From then on, the heir can do with the home as they please.

Taxes You Need to Know About When Inheriting a Home

New York Estate Tax: Will You Owe Anything?

New York’s estate tax applies if the total estate exceeds $6.58 million in 2025. Below that, you’re in the clear—no inheritance tax exists in NY. The executor handles this before you inherit.

Capital Gains Tax If You Sell the Home

Thanks to the step-up in basis, the home’s value resets to its worth at the time of death. Sell it soon after at $500,000 (inherited value), and you owe no capital gains tax—even if it was bought for $100,000 decades ago.

Property Taxes and Ongoing Costs

New York taxes, including property taxes, vary by county—think $8,000-$12,000 annually for a median home. Factor in insurance and upkeep, too, especially if the home sits vacant.

Taking Over an Existing Mortgage

If the home has a mortgage, you can assume it, pay it off, or sell the property. Federal law protects heirs from foreclosure if they keep payments current.

Dealing with Liens or Other Debts

Debts are paid from the estate first. If it’s insolvent, you might inherit a home with liens—check with an attorney to avoid surprises.

Deciding What to Do with an Inherited Home

Inheriting a home in New York forces you to make a big decision: keep it, sell it, or rent it out. Each choice comes with financial, emotional, and practical implications, and the right path depends on your situation. New York’s high property values—especially in areas like Long Island or Westchester—and its unique housing market in 2025 add extra layers to consider. Here’s how to break it down.

Should You Keep, Sell, or Rent the Property?

Keeping the home could mean moving in yourself or holding onto it as an investment. Renting it out is tempting in New York, where average rents hit $2,500/month statewide in 2025, and much higher in places like Brooklyn ($3,800) or Manhattan ($4,500). For example, a modest inherited home in Rochester might generate steady rental income, covering property taxes ($8,000-$12,000/year) and maintenance while building equity. But renting comes with headaches: finding tenants, handling repairs, and complying with New York’s strict landlord laws (e.g., rent stabilization rules in some areas). Plus, if the home needs work, upfront costs could eat into profits.

Selling, on the other hand, offers a clean break and a potential windfall. With median home prices in New York hovering around $600,000 in 2025, cashing out could fund retirement, pay off debt, or simplify your life. Emotional ties complicate this, though—letting go of a childhood home or your parent’s legacy isn’t easy. Market timing matters too: if New York’s 2025 housing market is cooling (say, due to rising interest rates), you might not get top dollar. Check local trends—Zillow or a realtor can help—or weigh a quick sale to an investor against listing it traditionally for maximum value.

Moving Into the Home Yourself

If you’re leaning toward keeping the home, moving in might make sense—especially if you’re tired of renting or want a fresh start. First, transfer the title (via probate or intestacy paperwork) and update county records; a real estate attorney can handle this for $1,000-$2,000 in New York. Once it’s yours, you’ll need to budget for immediate costs: utilities, property taxes, and possibly repairs to make it livable. For example, a 1950s home in Syracuse might need $20,000 in updates—new wiring, a furnace—to meet 2025 standards.
Living there long-term has tax perks. Stay for at least 2 years, and you qualify for a capital gains exclusion when you sell: $250,000 if single, $500,000 if married. Say you inherit a home valued at $500,000 in 2025, move in, and sell it in 2027 for $600,000. That $100,000 profit is tax-free (thanks to the exclusion), on top of the step-up basis you got at inheritance. But moving in isn’t just financial—it’s personal. Uprooting your life, especially if the home’s far from work or in rough shape, could strain your routine or budget. And if you’re on Medicaid or other benefits, owning a valuable home might affect eligibility—check with an advisor.

Consider the home’s condition and location, too. A waterfront property in the Hamptons is a different beast from a fixer-upper in Buffalo. Test the waters: spend a weekend there, talk to neighbors, and weigh how it fits your future.

How to Sell an Inherited Home in New York

How to Sell an Inherited Home with One Heir

When you have inherited a home in New York, your first instinct may be to sell the home. Especially if you have your own home and this was the home of a loved one. If you are the only heir to the home, then inheriting the home and selling it quickly should be a pretty simple process in New York. However, here are a few tips to keep in mind:

1. Be sure that you put a vacant home insurance policy on the home to help with protection against liabilities. 
2. Keep the utilities running and pay this.
3. Remember to pay the property taxes.
4. Also maintain the home since you want to sell this, the better shape this is in, the better it will sell.
5. You will also want to take the time to clean out the personal items of the home and get rid of items to make it empty.
6. Have your home appraised to find out just how much this home is worth so you have a better idea of what to ask for. 
7. Consider whether you will list the home on the open real estate market or whether you want to consider selling to a real estate investor.

Remember that when you decide to go with an investor, you may find that you’ll be able to skip some of the steps above and the sale will happen much more quickly. Plus, the house can be sold as-is, without having to even empty it out, which is super convenient.

After inheriting the home in New York, if you are able to sell the home quickly, you will be shielded from capital gains taxes because you benefit from what’s called a step-up basis. This means that this home will be taxed based on the market value of the inherited home at the time of the owner’s death. So if the home has been owned by the deceased for 30 years and has appreciated a lot, you are not being taxed on these gains. And if you sell the property shortly after it’s inherited, then the market value from the step-up will be equal to what you sell the property for, resulting in no tax implications.

However, if you decide to live in the inherited home for 2+ years, then you can also get the benefit of the $250,000 (single) or $500,000 (married) tax exclusion since it’s your primary residence. This situation still benefits from the step-up basis and those capital gains tax exclusions begin to apply on any amount over the market value of the property at the time it was inherited. However, many heirs simply want the home out of their possession so they no longer have to worry about it or deal with moving their family into a new primary residence.

Selling an Inherited Home with More than One Heir

When there is more than one heir involved, oftentimes the idea of selling an inherited home in New York is more appealing than trying to figure out who gets to live in the inherited home. However, the problem comes when one heir doesn’t want to sell, while everyone else does. This is seen in several situations and it can cause a huge issue among the entire family. The case is made even worse when the will does not specify what the deceased wanted to be done with the home, or in the case that there is no will at all. So, what can you do?

You can file an inheritance partition in which the court will then divide the estate into separate portions that represent how much each heir inherited. The court will then force the sale of the property and the money that is made is divided among the heirs according to how much they inherited. This can be a huge financial hit as you often make less money and you have to consider legal fees as well. Plus, this can cause irreparable damage among the family. 

Often the better choice is for everyone to sit down with some mediation and find common ground. In some cases, one heir simply wants more money because they feel that they are being put out into the cold, especially if they lived in the home with the deceased, which is often the case when numerous siblings are heirs. With this being the case, many siblings opt to take a lower amount in order to get the one sibling on board with the decision to sell. It may not be the fairest action, but it does avoid court fees and alienating family members.

You can also decide to sell a portion to the one sibling who wants to keep the home. This works well, as the one heir gets the property and the others get the value of the property, which is what they wanted to do in the first place. This would typically be done by getting an appraisal to use to determine the market price at which to sell their interest in the home to the other person.

Selling an Inherited Home in Need of Repairs

When you are inheriting a home in New York that needs major repairs, this can be a huge stressor. Especially if it’s during the winter months and the house needs to be looked after – frozen pipes, shoveling, etc, After all, this doesn’t feel like a gift from a lost loved one…it feels more like a gigantic headache. In this type of situation, many heirs wonder if they can just sell the house without having to make the repairs or deal with the stress. After all, home repairs can be expensive and you are in the middle of dealing with the lost loved one. To make things even tougher, this often involves going through the deceased’s home to remove their personal belongings, with all the emotional elements that go into this process. When this is the situation, you may find that selling the home ‘as is’ to a professional home buyer is one of the best decisions that you can make for your mental well being. 

Selling to a real estate investor is one of the easiest ways to get rid of a home that you have inherited. This can be done whether you are the main heir or there are numerous heirs involved, and whether or not the home is in need of major repairs. When a real estate investor like Leave The Key Homebuyers looks at the home, they are going to consider what the home would be worth on the market if were in mint condition. They factor in the current state of the home and what repairs are going to cost them to make. They will also look at title issues or other legal obstacles that may be in the way since this is an inherited home. Once this has all been calculated, they then give a cash offer to the heirs that they can choose to accept. 

For those who have already inherited a home or if you are planning on inheriting a home, oftentimes it is easier to work with a local real estate investor in New York who buys these homes for cash. It eliminates having to use a real estate agent and paying a realtor commission. It eliminates the need to make repairs to the home, and the process is done super quickly. If you have inherited a home in New York, this may be your best option and we are here to help!

Handling Family Dynamics and Disputes

Common Conflicts Among Heirs

Siblings may argue over selling vs. keeping the home, especially if one lived there with the deceased and resists change. Selling a Long Island home worth $480,000—below the 2025 median of $600,000—split three ways ($160,000 each) can fuel tension, as rising property values and high taxes ($10,000/year in some counties) amplify stakes. Disputes often flare when one heir wants cash fast while another clings to sentimental value.

When to Seek Legal Help

If talks stall and heirs can’t agree on the home’s fate, an estate attorney or mediator can step in—cheaper than a court fight that drags on. In New York, expect $200-$400/hour in 2025 to untangle disputes, saving time and preserving family ties. This is critical when probate delays or threats of a forced sale loom, especially with a valuable property at stake.

Planning Ahead: Lessons for Your Own Estate

How to Avoid Inheritance Headaches for Your Heirs

Make a clear plan—like a will or trust—so your family knows exactly who gets your New York home, dodging messy fights over it later. Think of it as a final gift: no guessing games, just peace of mind for your loved ones. A lawyer can set it up fast, keeping your wishes ironclad and your heirs out of court.

Frequently Asked Questions About Inheriting a Home in New York

Q: What if my loved one didn’t leave a will for their home?
A: Many assume a detailed will covers everything, but often it’s outdated or missing entirely. Without a will, New York’s intestacy laws decide who gets the home—spouses, kids, or even distant relatives—leading to unexpected splits and delays.

Q: How can family relationships complicate inheriting a home?
A: Blended families—kids, stepkids, or in-laws—can muddy ownership, especially with no will, where everyone might claim a share. Even tight-knit families can feud over splitting a Long Island home’s value (median $600,000 in 2025), turning harmony into headaches.

Q: Why does inheriting a home feel like a financial burden?
A: An unpaid mortgage means you’re suddenly juggling new payments—say, $2,000/month. Add property taxes (up to $12,000/year in 2025) or past-due bills, and it’s a shock—though renting it out or selling to an investor can ease the load, and New York tax collectors often offer flexibility.