Selling Inherited Land: A Guide for Heirs

Inherited land is the most common situation I see, and it usually looks like this: a parcel someone's parents or grandparents bought decades ago, in a state the heirs don't live in, generating nothing but a tax bill and an argument about who's supposed to pay it. If that's you, here's what you need to know.

First: Figure Out Who Legally Owns It Now

This is the step that determines everything else. There are three common situations. If the estate went through probate and a deed was recorded putting the land in the heirs' names, you can sell normally. If the land was in a trust, the successor trustee can sell it — often the simplest path. If nobody ever did the paperwork and the deed still shows your late relative's name, you'll need to complete probate (or a small-estate/heirship process, depending on the state and value) before a title company can insure a sale.

Don't panic if you're in the third bucket — it's extremely common, and title companies deal with it every week. The fix ranges from a simple affidavit to a short probate filing.

Co-Owned Family Land: Get Everyone Aligned Early

When land passes to multiple siblings or cousins, every owner must sign at closing. The sale itself is easy; the family conversation is the hard part. My advice: have the "do we keep it or sell it" conversation before soliciting offers, and designate one family member as the point of contact. Proceeds get split by the title company exactly as the ownership reads — no one has to trust anyone else with the money.

The Tax News Is Usually Good

Heirs receive land at its stepped-up basis — its market value at the date of death, not what your grandfather paid in 1968. Sell soon after inheriting and there's typically little or no capital gain to tax. Hold it for fifteen years first, and you may owe tax on the appreciation. (I'm not a tax advisor — confirm your situation with one — but this is the general rule that surprises most heirs in a good way.)

You Don't Need to Travel

Modern land closings are fully remote. The title company emails documents, you sign before a notary in your town (or an online notary in many states), and proceeds wire to your account. I regularly buy land from heirs who have never seen the property and never will.

What About the Back Taxes?

If the parcel has accumulated unpaid property taxes — very common with inherited land — they're paid out of the sale proceeds at closing. You generally don't need to pay them out of pocket first, but don't wait too long: counties eventually tax-deed delinquent land, and then there's nothing left to sell.