Inherited a House in DC, MD, or VA? A Step-by-Step Checklist

• Probate: the court-supervised process of settling someone's estate. The person who died is called the decedent.
• Personal representative: the person with legal authority to manage the estate. If named in a will, they are often called the executor. If appointed without a will, they may be called an administrator. In DC and Maryland, "personal representative" is the usual term.
• Letters: the court or register document that proves the personal representative's authority. Banks, insurers, and title companies will ask for it.
• Heir: someone who inherits under state law when there is no will. A beneficiary or devisee inherits under a will.

Secure the property

• Lock doors and windows. Consider changing the locks, and keep a list of who has keys.
• Remove valuables and important papers to a safe place.
• Forward the mail through the Postal Service so bills and notices aren't missed.
• Visit or arrange checks regularly, especially in freezing weather.

Call the insurance company

Tell the homeowners insurer that the owner has died, and ask how the policy continues. This matters most if no one will live there. The Insurance Information Institute notes that most homeowners policies have a vacancy clause that limits or excludes coverage if the home is unoccupied for typically 30 to 60 consecutive days. Ask whether you need a vacancy endorsement or a vacant-home policy. Get the answer in writing.

Find the will and important documents

Look for the will, the deed, mortgage statements, the insurance policy, property tax bills, and any trust papers. Check the home, a safe deposit box, and the decedent's attorney.

Don't sit on the will. Each jurisdiction expects it to be filed:

• DC: Anyone holding a will must deliver it within 90 days after learning of the death. It goes to the Probate Court, the Register of Wills, or the executor named in it.
• Maryland: The person holding the will should file it promptly with the Register of Wills in the county where the decedent lived, even if no probate is planned.
• Virginia: The will is generally probated in the circuit court for the county or city where the decedent lived.

Order several certified copies of the death certificate. You will need them often.

Keep the bills paid

• Mortgage. Keep making payments if you can, even before probate is open. Missed payments can lead to late fees and, eventually, foreclosure.
• Property taxes and utilities. Keep water, power, and heat on. They help prevent frozen pipes and mold. Keep receipts. Money spent on the estate's behalf may be reimbursable, depending on the estate's rules.
• Reverse mortgage? The timelines are shorter. The CFPB says heirs who get a "due and payable" notice generally have 30 days to buy, sell, or turn over the home. An extension of up to six months may be possible. Call the servicer and a HUD-approved counselor right away.

Open probate in the right place

District of Columbia: Superior Court Probate Division The Probate Division is at 515 5th Street NW, 3rd floor. Estates with DC property worth $80,000 or less may qualify as a small estate. For larger estates, the nominated personal representative files a petition. After the judge signs an order, a notice is published once a week for three weeks in two newspapers. Certain filings are due within 90 days. The court notes that a lawyer is not required but that the process is complicated.

Maryland: Register of Wills File in the county where the decedent lived. Prince George's and Montgomery each have their own office. An estate is a small estate if probate assets are $50,000 or less, or $100,000 or less if the surviving spouse is the only heir or legatee. Otherwise it is a regular estate. In a regular estate, the personal representative generally files an inventory within three months and a first account within nine months of appointment. Maryland also has an inheritance tax. It is 10% for some beneficiaries. Close relatives, such as spouses and children, are generally exempt.

Virginia: Circuit Court Clerk The executor or administrator "qualifies" before the clerk of the circuit court where the decedent lived. The clerk may require a bond. Within 30 days of qualifying, the personal representative must send written notice to heirs and beneficiaries. An affidavit of that notice must be recorded within four months. An inventory is generally due to the Commissioner of Accounts within four months. Virginia's small estate procedure covers personal property up to $75,000, not real estate.

These figures change from time to time. Confirm them with the court or register before you file.

Understand the personal representative's job

In general, the personal representative:

• Collects and protects the estate's assets, including the house.
• Gives required notices to heirs and creditors.
• Pays valid debts, expenses, and taxes from estate funds.
• Files inventories and accountings on time.
• Distributes what remains, or sells property if that is authorized.

Maryland's Register of Wills notes that a personal representative generally must be appointed before real property titled in the decedent's name alone can be transferred. Who can sign a deed depends on the will, how title was held, and local law. That is a good question for a probate attorney.

Contact the mortgage servicer as a "successor in interest"

A successor in interest is someone who receives the home when a relative or joint owner dies. Federal rules help here:

• Confirmation. Servicers must have procedures to promptly confirm successors. Send the death certificate and proof of your interest, and ask for written confirmation.
• Same protections as the borrower. Once confirmed, successors generally receive the same servicing protections as the original borrower. That includes statements, loan information, and review for loss mitigation (options to avoid foreclosure).
• No automatic "due on sale." A federal law known as the Garn-St Germain Act generally bars lenders from calling the loan due because of a transfer to a relative resulting from a borrower's death, or when a spouse or child becomes an owner. This applies to homes with fewer than five units.
• Adding your name. The CFPB has said that adding an heir as a borrower does not trigger the Ability-to-Repay requirements (the rule that makes lenders check that a borrower can afford a new loan).

Get a date-of-death value

The IRS says the basis of inherited property is generally its fair market value on the date of death, or on an alternate valuation date if the estate elects one. This is the stepped-up basis. If you sell for no more than that basis, there is typically no taxable gain. A professional appraisal close to the date of death helps document it. There are exceptions, for example for jointly owned property. Ask a tax professional how the rules apply to you.

DC note on vacant homes

In DC, a home no one lives in can be classified as vacant and taxed at a higher Class 3 rate. Buildings vacant for 90 days or more must also be registered. The Department of Buildings lists probate proceedings as a basis for exemption, with supporting court documents. Apply if it fits.

Compare keep, rent, and sell

If there are several heirs, agree in writing on who pays what while the decision is made. Selling usually requires the personal representative's authority or all owners' signatures.

If it would help to talk it through, we offer a free 20-minute consultation and a written Options Report comparing keeping, renting, listing, and selling directly. We'll say so if selling to us isn't the best fit, and we work alongside your probate attorney.

• Insurance Information Institute: Understanding vacancy insurance
• D.C. Code § 18-111 (delivery of wills)
• D.C. Code § 20-351 (small estates)
• DC Courts: Probate FAQs
• DC Courts: Large Estates
• Maryland Register of Wills: General Estate Information Guide
• Maryland Register of Wills: Small Estates
• Maryland People's Law Library: Estate Administration Step-by-Step Guide
• Virginia Courts: Probate in Virginia
• Code of Virginia § 64.2-508
• Code of Virginia § 64.2-601
• CFPB: Reverse mortgage heirs
• CFPB: Homeowners face problems after divorce or death of a loved one
• CFPB: CFPB Expands Foreclosure Protections
• CFPB: Clarifies Mortgage Lending Rules to Assist Surviving Family Members
• 12 U.S.C. § 1701j-3 (Garn-St Germain), via Cornell LII
• IRS Publication 551, Basis of Assets
• IRS FAQ: Gifts & Inheritances
• DC DOB: Vacant and Blighted Buildings FAQs
• DC DOB: Register a Vacant Building as Exempt