Do I have to go through probate to sell an inherited house in Colorado?

It depends on how the home was titled. If it was held in joint tenancy with right of survivorship, passed by a beneficiary deed recorded before death, or was held in a living trust, it can generally transfer without probate. If the home was in the deceased person's name alone, the estate usually has to be opened before it can be sold.

Do I pay capital gains tax when I sell an inherited house?

Often very little, if you sell soon after the death. Under federal law inherited property generally receives a stepped-up basis equal to its fair market value on the date of death, so you are taxed only on appreciation after that date. Confirm your situation with a CPA.

Can I sell an inherited house that is full of belongings?

Yes. You do not have to empty the house to sell it. Direct buyers will purchase it as-is with contents in place, and if you list it, an estate sale company or cleanout crew can handle what the family does not want.

What if the heirs disagree about selling?

A documented, neutral valuation usually helps most, because it moves the conversation from opinions to numbers. If there is a genuine deadlock, that is a matter for the estate attorney rather than the broker.

Selling an Inherited House in Colorado

Q: Can I use a small estate affidavit to transfer an inherited house in Colorado?

No. Colorado's small estate affidavit, set at $88,000 for deaths occurring in 2026, applies to personal property such as bank accounts and vehicles. It cannot be used to transfer real estate. A house held in the deceased person's sole name generally requires probate regardless of value.

Q: Does Colorado have an inheritance tax or estate tax?

No. Colorado does not impose a state estate tax or an inheritance tax. Federal estate tax applies only to very large estates.

First question

Does the house have to go through probate?

This is the question that decides your timeline, so it is worth answering before anything else.

In Colorado, how the deed was titled usually decides it. A house often passes without probate when any of these apply:

Joint tenancy

If the home was held in joint tenancy with right of survivorship, it vests in the surviving owner automatically by operation of law.

A recorded beneficiary deed

Colorado allows a beneficiary deed that transfers real estate at death. It has to have been signed and recorded with the county clerk and recorder before the owner died.

A living trust

If the home was deeded into a trust, the trustee handles the sale under the trust rather than through probate.

If none of those apply and the home was in the deceased person's name alone, the estate generally has to be opened before the house can be sold.

The small estate shortcut does not work for houses

Colorado has a small estate affidavit for modest estates, set at $88,000 for deaths occurring in 2026. It is worth knowing that it covers personal property only, things like bank accounts and vehicles. It cannot be used to transfer real estate. If there is a house in the deceased person's sole name, probate is generally required no matter what the estate is worth.

The part everyone worries about

What you will owe in taxes

Two pieces of good news, and one thing to confirm with a CPA.

No Colorado estate or inheritance tax

Colorado does not impose a state estate tax or an inheritance tax. Federal estate tax applies only to very large estates.

Your basis usually resets

Under federal law, inherited property generally gets a stepped-up basis to its fair market value on the date of death. The appreciation during the owner's lifetime is effectively wiped out for capital gains purposes.

In practice that means if you sell reasonably soon after the death, the taxable gain is often small, because you are taxed only on the increase in value after the date of death. That is exactly why a documented value as of the date of death matters, and why selling later without records can get expensive. Confirm your specifics with a CPA.

Your options

Three honest paths, and who each one suits

There is no universally right answer. It depends on the condition of the house, how far apart the heirs live, and how much disruption anyone has appetite for.

List it on the market

The path to the highest price. Best when the home is in reasonable shape, or when a modest cleanout and some paint would unlock real money. Involves showings and a normal closing timeline.

Sell direct and as-is

The path of least disruption. Best when the home needs significant work, the heirs are out of state, or nobody has the bandwidth for a project. No repairs or cleaning, usually one walkthrough. It typically nets less than a full listing.

Keep it and rent it

Worth considering, but go in clear eyed. Being a landlord is a real job. Plenty of the owners I talk to today are people who kept an inherited house years ago and are only now deciding to sell.

The human parts

The things nobody warns you about

The heirs do not agree

This is common and it is not a character flaw. One sibling wants to keep the house, another needs the money, a third lives out of state and just wants it resolved. What helps most is a neutral, documented number everyone can look at, so the conversation moves from feelings to facts. I am glad to provide that even if you never list with me. If there is a genuine deadlock, that is a conversation for the estate attorney, not the broker.

The house is full of a lifetime of belongings

This stops more sales than any repair issue. You do not have to empty a house to sell it. Direct buyers will take it as-is with contents in place. If you are listing it, we sort what matters to the family, then bring in an estate sale company or a cleanout crew for the rest. It is a solved problem, and it is usually less expensive than people fear.

The home has deferred maintenance

Older homes that were lived in for decades usually need something: a roof, a furnace, dated systems. You are not obligated to fix any of it. The real question is whether the repair returns more than it costs. I will tell you honestly when the answer is no.

Someone is still living in the home

Sometimes a family member or a tenant is still in the house. That does not prevent a sale, it just shapes which buyers make sense and what the timeline looks like. It is worth raising early rather than late.

There is still a mortgage or a reverse mortgage

A mortgage does not disappear at death, it is paid from the sale proceeds like any other sale. Reverse mortgages have their own, tighter deadlines after the borrower dies, so if there is one on the property, treat it as time sensitive and tell your attorney right away.

How I help

A steady hand, and no pressure to sell

I have owned and sold rental properties myself, so I understand what it feels like to make a decision about a house that carries history.

Most of what I do early on is not selling. It is giving you a documented value, explaining which path fits your situation, and pointing you to the right professionals. Many families I talk to are months away from doing anything, and that is completely fine.

If you need a probate attorney, I can refer you to estate attorneys who work here in the Brighton and Denver metro area. There is no fee or obligation to me either way.

Call or text me anytime at 303-647-4188.

Nathan Van Camp, Owner and Employing Broker, Sidekick Realty and Estates

Nathan Van Camp, owner and employing broker of Sidekick Realty and Estates

Nathan Van Camp, Broker

No cost, no obligation

Start with a number you can trust

I will put together a review of the property using the recorded sales closest to it, which are actual closed prices rather than online estimates, plus what it would likely bring listed against sold as-is.

Families use this to settle disagreements, to support a date of death valuation conversation with their CPA, or simply to know what they are dealing with. Keep it for your records either way.

Prefer to talk it through first? Call or text 303-647-4188.

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A necessary note. I am a real estate broker, not an attorney or a CPA. Everything here is general information about how these sales usually work in Colorado, not legal or tax advice for your situation. Probate and tax outcomes turn on details specific to each estate. Talk to a probate attorney and a tax professional before making decisions. If you do not have one, I am glad to refer you to estate attorneys who work in the Brighton and Denver metro area, with no fee or obligation to me.

Selling a house you inherited