The Essential Guide to Selling Parents' House Before Death

Selling a parent’s house before their death, or “selling parents house before death,” can be an emotional and complex process. However, with the right approach and understanding of the various factors involved, it can also be an opportunity to secure your family’s financial future and ease emotional burdens. In this blog post, we will guide you through the essential steps in selling parents house before death, exploring the advantages, navigating family dynamics, and understanding the legal processes involved. Let’s begin our journey towards a successful and smooth sale.



• Choosing the right sales method for a parent’s house before death depends on the condition of the property and unique situation.

• Selling to a local investor like us for cash can provide a faster process and can provide numerous benefits such as tax savings, avoiding probate, and easing emotional burden.

• Understanding legal process including granting power of attorney and transferring ownership is essential. Open communication among family members is key to successful sale.



When it comes to selling a parent’s house before death, you have two primary options: hiring a real estate agent or selling the property as-is to a cash buyer. Both options come with their own set of advantages and disadvantages, and the best choice depends on your unique situation and the condition of the property. In the real estate world, understanding the probate process is crucial, as it can significantly impact the sale of the house.

Hiring a real estate agent can provide valuable assistance in determining the market value of the parent’s home through a competitive market analysis, advertising the property, and negotiating with potential buyers. However, employing a real estate agent can be costly and may delay the sale process if the property is subject to probate court proceedings.

On the other hand, selling as-is to a cash buyer offers a quick and convenient method of disposing of the property through an estate sale, but often results in a lower sale price.

Hiring a Real Estate Agent and Why It May Be an Issue

A real estate agent is a professional who can assist with various aspects of the sales process, including:

• Staging
• Marketing
• Negotiating
• Navigating estate tax implications

While their knowledge and experience can be valuable, real estate agents typically charge a commission of 5-6% of the sale price, which can significantly impact your proceeds.

Moreover, when engaging a real estate agent, they may require repairs or renovations before listing the property, potentially increasing the amount of taxes you need to pay. If you decide to sell without an agent, also known as “For Sale By Owner” (FSBO), you may still need to pay capital gains taxes on the sale, and the lack of experience could result in a lower profit.

Selling As-Is and Selling To a Cash Buyer

Selling a parent’s house as-is to a cash buyer involves the following steps:

1. Retrieve the items you wish to keep from the property.
2. Leave the property in its current state, without making any repairs or renovations.
3. Complete the sale quickly, as there is no need for extensive negotiations or inspections.

It is important to note that selling to a cash buyer usually results in a lower sale price compared to selling with a real estate agent.

When selling to a cash buyer, house flippers and landlords are often the types of investors who target motivated sellers, such as heirs looking to dispose of their inherited property. These investors usually purchase houses at a price below the market value to account for the expenses associated with renovating and restoring a property before selling or renting it out.



Companies that purchase properties in their existing condition handle the cleaning and repairs, allowing you to focus on other aspects of the sale.

There are several advantages to selling a parent’s house before death, including tax savings, avoiding probate, and easing the emotional burden on the family. Selling before death can help cover medical expenses or the costs associated with elderly care for the parent. To maximize the benefits, it is crucial to consult an accountant or an estate attorney for specific advice on avoiding taxes when selling a parent’s house.

The maximum amount of money that can be received exempt from federal estate taxes when selling a parent’s house before death is $11 million. A living trust, a legally binding arrangement wherein you are designated as a beneficiary with your parents acting as the trustee, may assist in circumventing probate, although it does not serve as a tax shield. With proper planning, it is possible to avoid probate and secure a more favorable outcome for your family.

Tax Savings

Selling a parent’s house before death can result in significant tax savings, including avoiding capital gains tax and inheritance tax. Here are some key points to consider.

• Capital gains tax is applicable to the increase in market value of the property during the parent’s lifetime following purchase.

• Parents filing jointly are exempt from paying capital gains tax on up to $500,000 of profits.

• If they are single, this exemption amount reduces to $250,000.

The step-up in basis is another tax advantage when selling a parent’s house before death. It adjusts the fair market value of the parents’ home upon transfer to the heir, eliminating the need to pay capital gains tax for the appreciation in market value during the parent’s lifetime since its purchase. This tax saving can be a substantial financial relief for the family, especially when dealing with other expenses and emotional challenges during this difficult time.

Avoiding Probate

Avoiding probate can save time and money, as well as prevent potential legal disputes among family members. Probate is a legal process that ensures the appropriate individuals receive their rightful portion of a deceased person’s estate, including creditors and beneficiaries. By selling a parent’s house before death, you can avoid the lengthy and costly probate process.

To circumvent probate when disposing of a parent’s house before death, there are two methods: a living trust and a death deed. A living trust is a legally-binding arrangement wherein you are designated as a beneficiary with your parents acting as the trustee, which may assist in avoiding probate. A death deed, on the other hand, is a legally binding document that transfers ownership of a property directly to the designated heir without the need for probate. Both methods can help ensure a smoother and more efficient sale process.

Easing Emotional Burden

Selling a parent’s house before their death can help ease the emotional burden on the family by allowing them to focus on grieving and healing instead of dealing with the complexities of selling a home. When it’s time to sell parents’ house, it is essential to allow oneself to grieve and discuss matters related to selling parents’ house.

To preserve memories of the family home, you can select mementos that will aid in remembering the home and the memories experienced there. Capturing photos of the home and the memories shared there can assist in adapting to the change and provide a sense of closure.



Understanding the legal process involved in selling a parent’s house before death is crucial to ensuring a smooth and successful transaction. The legal procedure required for the sale of a parent’s house before death involves granting power of attorney and transferring property ownership. Power of attorney is a legal instrument that grants an individual the authority to represent another person in legal matters, such as selling their assets. Property ownership transfer is the process of ensuring that the house is legally transferred to the appropriate heir or buyer before the parent’s death.

It is essential to recognize that selling a parent’s house before death may involve probate, a legal process that ensures the appropriate individuals receive their rightful portion of a deceased person’s estate. Although probate can be avoided with proper planning, it is important to understand its implications and how it can impact the sale of the house.

Power of Attorney

Granting power of attorney is a critical aspect of the legal process when selling a parent’s house before death. Power of attorney is a legally binding document that permits one individual to act on behalf of another, including the sale of their assets. This authorization allows the designated individual to make decisions on behalf of the parent, including selling their house.

It is crucial to confirm that the power of attorney document explicitly permits real estate transactions, as this will ensure that the appointed individual can legitimately make decisions on behalf of the parent, including selling their house. Engaging an estate attorney can guarantee that the power of attorney is properly established and that the sale of the parent’s house is conducted in a lawful and accurate manner.

Property Ownership Transfer

Property ownership transfer is another essential aspect of the legal process when selling a parent’s house before death. This process ensures that the house is legally transferred to the appropriate heir or buyer before the parent’s death. The first step in selling a parent’s house after their passing is to transfer the title into the seller’s name.

There are costs associated with transferring property ownership, such as title search and insurance expenses. It is essential to account for these costs when planning the sale of a parent’s house before death and to ensure that all legal requirements are met to guarantee a smooth and successful transaction.



Preparing the house for sale is a crucial step in the process of selling a parent’s house before death. This involves decluttering and cleaning the house, making necessary repairs, and staging the home to appeal to potential buyers. Ensuring that the house is in its best possible condition can help attract more buyers and increase the likelihood of a successful sale.

It is necessary to identify repairs that will make the house more appealing to prospective buyers, such as cosmetic updates, structural repairs, and energy-efficiency upgrades. Decluttering and cleaning the house can make it more spacious and visually appealing, allowing potential buyers to better envision themselves living there.

By properly preparing the house for sale, you can help expedite the sales process and potentially increase the selling price.

Decluttering and Cleaning

Decluttering and cleaning a house prior to selling can have several benefits.

• It can make the house appear more spacious and aesthetically pleasing, allowing prospective buyers to better envision themselves residing there.

• It can increase the home’s value, making it more attractive to potential buyers.

• It can draw more buyers, increasing the chances of a successful sale.

The process for decluttering and cleaning a house prior to sale involves eliminating any superfluous items, arranging the remaining items, and then performing a thorough cleaning of the entire house. To effectively declutter and clean a house before selling, it is essential to begin with the least utilized areas, discard any items that are not required, and engage the services of a professional cleaning service to perform a thorough clean.

By ensuring that the house is decluttered and clean, you can create an inviting environment for potential buyers and make the property more attractive on the market.

Repairs and Renovations

Repairs and renovations are of great importance when selling a parent’s house before death, as they can enhance the value of the property, make it more appealing to prospective buyers, and expedite the sale process. When selling a house, it may be necessary to undertake:

• Cosmetic repairs, such as painting, replacing flooring, and updating fixtures

• Structural repairs, such as repairing or replacing the roof, foundation, or plumbing

• Energy-efficiency upgrades, such as installing new windows or insulation

In overseeing repairs and renovations, it is prudent to:

• Prioritize the most necessary tasks

• Solicit multiple estimates from contractors

• Formulate a budget to ensure that the expenses remain within the anticipated range

By addressing critical repairs and renovations, you can increase the home’s value and make it more appealing to potential buyers.

Home Staging

Home staging is the process of preparing a home for sale by enhancing its appeal to potential buyers. This can be achieved by:

• Decluttering

• Cleaning

• Making repairs and renovations

• Adding furniture and decorations

Home staging can emphasize the property’s most desirable qualities and make it more attractive to prospective buyers.

Proper home staging allows potential buyers to visualize themselves living in the home, thus potentially expediting the sale process and increasing the selling price. By staging the home in a way that showcases its best features, you can create a welcoming environment that appeals to a wide range of buyers and increases the chances of a successful sale.



Navigating family dynamics during the process of selling a parent’s house before death can be challenging, but it is essential to maintain open communication and transparency among family members to prevent conflicts and ensure everyone is on the same page. By recognizing any grief that may be present and openly discussing the various aspects of the sale, you can work together towards a successful outcome.

It is advisable to plan ahead with the other heirs regarding the settlement of the estate and, if necessary, to enlist the services of a professional mediator. By seeking mediation and professional support, you can help resolve any disputes or disagreements that may arise during the process of selling a parent’s house before death.

Communication and Transparency

Open communication and transparency among family members can help prevent conflicts and ensure everyone is on the same page during the sale of a parent’s house. By discussing the most effective approach to market the house, the timeline for the sale, and the division of proceeds, you can create a collaborative environment that fosters trust and support.

Through open communication and transparency, family members may gain insight into one another’s perspectives, allowing them to come to a consensus regarding the sale of the house. This can help to avert any potential misunderstandings or disagreements that may lead to conflicts, ensuring a more harmonious and successful sale process.

Mediation and Professional Support

Mediation and professional support can be invaluable resources in resolving conflicts and disagreements between family members during the sale of a parent’s house before death. By providing guidance in navigating the legal and financial components of the sale, professional support can help lessen stress and tension among family members and ensure a smoother transaction.

If disputes or disagreements arise during the process of selling a parent’s house, utilizing mediation and seeking professional support may be beneficial in finding a resolution. By enlisting the help of impartial mediators and professionals, family members can work together to reach a compromise and move forward towards a successful sale.



In conclusion, selling a parent’s house before death can be a complex and emotional process, but with the right approach and understanding of the various factors involved, it can also be an opportunity to secure your family’s financial future and ease emotional burdens. By choosing the right sales method, understanding the legal process, preparing the house for sale, and navigating family dynamics, you can successfully sell your parent’s house before death and ensure a smooth transition for your family during this challenging time.



Can I inherit my parents house while they are alive?

Yes, you can transfer ownership of your parents’ house to your children while they are still alive, either through gifting or selling it to them, bequeathing it upon passing away, or using a Transfer-on-Death deed.

Gifting or selling the house to your children while they are still alive is the simplest way to transfer ownership. You can also bequeath the house to your children in your will, or use a Transfer-on-Death deed. This document allows you to transfer ownership of the house to your children without having to go through probing.

What happens if my parents sell their house and give me the money?

Receiving money from your parents as a gift is considered a taxable event. You must report the value of the gift on IRS Form 709, although you may not necessarily owe taxes on it.

However, if the gift exceeds the annual exclusion amount, you may be subject to gift taxes. The annual exclusion amount for 2020 is $15,000 per person.

Do all heirs have to agree to sell property in Philippines?

All heirs must agree on the sale of a property before it can be settled extrajudicially. If all parties cannot come to an agreement, the only other option is to pursue litigation.

What are the primary methods of selling a parent's house before death?

The primary methods for selling a parent’s house before death are hiring a real estate agent or selling the property as-is to a cash buyer.

Hiring a real estate agent is the most common option, as it allows the parent to get the best price for their home. The agent will list the home on the market and handle all the paperwork and negotiations. This option can help.

What are some tax savings from selling a parent's house before death?

Selling a parent’s house before death can help avoid capital gains and inheritance tax, providing potential tax savings.

This can be a great way to ensure that the family’s assets are passed on to the next generation with minimal tax implications.