Inheriting a House in Virginia: Probate, Taxes, and Selling

You inherited a house in Virginia - here’s what actually happens

First, take a breath. Nothing about the house has to be decided this week. The property does not vanish, the state does not seize it, and the mortgage company generally cannot demand immediate payoff just because the owner died.

Virginia has a quirk that surprises people: real estate generally passes directly to the heirs or the people named in the will at the moment of death, by operation of law. That does not mean paperwork is optional - a buyer’s title company still wants the estate properly opened and any debts addressed - but it does shape how the process works. What happens next depends on how the owner held title and whether they left a will. And if you live out of state, which is common with inherited Virginia property, all of this can be handled remotely.

Does it go through probate?

The house often does not go through probate the way personal accounts do, because title vests in heirs at death. The main paths:

• Living trust. A house held in a revocable living trust passes outside court. The successor trustee transfers or sells it directly.
• Transfer on death deed. Virginia adopted the Uniform Real Property Transfer on Death Act, effective July 1, 2013. If the owner recorded a valid TOD deed before death, the named beneficiary takes the house without probate.
• Joint tenancy or tenancy by the entirety with survivorship. A surviving spouse or co-owner takes title automatically. Married couples commonly hold the home as tenants by the entirety, which passes to the survivor outside probate.
• Title vesting in heirs. With or without a will, the real estate passes to the devisees or heirs at death. In practice, the estate is still usually “probated” (the will qualified and an executor appointed) so debts, taxes, and a clean chain of title get handled, but the house itself is not tied up the way an estate bank account is.
• Small estate affidavit. For personal assets of $50,000 or less, an heir can collect by affidavit 60 days after death. This is a personal property tool and does not transfer the house.

The Virginia probate timeline

Virginia’s process is administered largely through the Circuit Court clerk rather than in front of a judge:

1. Qualification (weeks 1-6). The executor or administrator “qualifies” before the clerk in the county or city where the person lived, and receives a certificate of qualification.
2. Notice and inventory (months 1-4). The personal representative sends required notices to heirs, files an inventory of estate assets with the Commissioner of Accounts, and publishes notice where appropriate.
3. Creditor and accounting period (months 4-12). Debts and taxes are handled, and the representative files accountings with the Commissioner of Accounts. Creditors generally have a set window to present claims.
4. Closing (months 6-14). Once accountings are approved and debts settled, the estate closes and any remaining assets are distributed.

A straightforward estate commonly runs six months to well over a year, with the Commissioner of Accounts filings driving much of the timeline. Because the house passes to heirs at death, it can often be sold well before the estate formally closes.

Taxes when you inherit

The headline is simple: Virginia has no state inheritance tax and no state estate tax. Virginia repealed its estate tax for deaths after mid-2007, so you owe the state nothing for inheriting.

Federal estate tax only applies to estates above $15 million per person (2026), so the overwhelming majority of families never touch it.

The fact that actually saves people money is the stepped-up basis. When you inherit, the house’s cost basis for capital gains resets to its fair market value on the date of death. If a parent paid $100,000 for a house now worth $550,000, your basis becomes $550,000. Sell soon after near that price and there is little or no capital gains tax - decades of appreciation are never income-taxed. This is federal law and applies everywhere.

One local note: any tax relief for the elderly or disabled the deceased owner qualified for ends once the home is no longer their primary residence, so budget for a possible increase if you keep it.

Can you sell during probate in Virginia?

Yes, and often sooner than in other states, precisely because title vests in the heirs at death.

• Heirs or devisees sell directly. Once the will is qualified (or heirship is clear without a will), the people who inherited the house can sell it, though a careful title company will want the estate’s debts addressed so the buyer takes clear title.
• Executor with a power of sale. Where the will grants the executor authority to sell real estate, the executor can list and sell it as part of administration and apply proceeds to debts.
• Sold outside probate. If the house passed by TOD deed, survivorship, or a trust, the new owners of record sell like any other sellers.

Because Virginia law can leave the estate’s creditors with a claim against real property for a period after death, title companies pay close attention to debts - an experienced Virginia closing attorney smooths this.

If you live out of state

A large share of inherited Virginia homes belong to heirs elsewhere. It works fine:

• Virginia allows out-of-state executors, though a nonresident may need to post a bond or appoint a resident agent. Filings can usually be handled through a Virginia probate attorney with minimal or no travel.
• The physical side - securing the property, insurance on a vacant house, clearing out belongings, and repairs - needs boots on the ground.
• A local agent experienced with inherited and probate sales becomes your proxy: checking on the house, lining up cleanout and contractors, advising on as-is versus fix-first, and running the sale while you manage things from home.

You do not need to relocate to Virginia for months. You need one trustworthy local professional and a real number on the house.

What’s the house worth?

Every path - keep, rent, or sell - starts with an accurate value. Online estimates are least reliable exactly where inherited houses live: original-condition properties in neighborhoods full of remodeled comps.

You will want the fair market value at the date of death (that sets your stepped-up basis, so document it) and today’s as-is value versus its fixed-up value. The spread between those last two tells you whether repairs are worth it. A local agent can pull all of this for free.

Frequently asked questions

How long does probate take in Virginia? A straightforward estate often takes six months to more than a year, driven by the inventory and accounting filings with the Commissioner of Accounts. The house itself, which passes to heirs at death, can often be sold before the estate fully closes.

Do I pay taxes on a house I inherit in Virginia? No. Virginia has no inheritance or estate tax, and federal estate tax only reaches estates over $15 million (2026). With the stepped-up basis, capital gains tax generally applies only to appreciation after the date of death.

Can I sell an inherited house before probate is finished? Usually yes. Because title vests in the heirs (or devisees) at death, they can sell relatively early, with a title company ensuring the estate’s debts are addressed so the buyer takes clear title.

What happens to the mortgage? It stays attached to the house. Inheriting relatives can generally keep paying it - federal rules block the lender from calling the loan due in most family transfers - or it is paid off from the sale proceeds at closing.

What if my siblings and I disagree about selling? Where multiple heirs own the house jointly, any co-owner can ultimately force a sale through a partition action, though a negotiated buyout or agreed sale is almost always cheaper. If an executor holds a power of sale under the will, that authority controls during administration.