Inherited a house in Indiana? A plain guide.

The first few weeks

You do not have to decide anything about the house right away. A few things protect it while the family sorts things out:

• Lock it up. Change or collect the keys, and keep valuables and papers somewhere safe.
• Call the insurance company. Tell them the owner has died and ask whether the policy still covers the house. Many homeowner policies limit coverage when a house sits empty.
• Keep the utilities on at least enough to prevent frozen pipes in winter.
• Keep paying the property taxes. Marion County bills are due twice a year, in May and November. Unpaid taxes can eventually put the house on the county's tax sale list.
• Call the mortgage servicer if there is a loan. Tell them about the death and ask what they need. Keep payments current if the family can.
• Find the paperwork: the will, the deed, the latest tax bill, mortgage statements and insurance policy.

How was the house owned?

This decides almost everything else. Look at the deed (the Marion County Recorder keeps copies) or ask an attorney to check.

• In a living trust. The successor trustee named in the trust usually handles the house, often without probate.
• Transfer on death deed. Indiana allows a deed that passes the house to named beneficiaries when the owner dies. They record an affidavit and the house is theirs, usually without probate.
• Joint owners "with right of survivorship," including many married couples. The surviving owner generally owns the whole house.
• In the person's name alone, with no trust or transfer on death deed. This is the common case, and it usually means probate or a small estate procedure.

Probate in Marion County

Probate is the court process that confirms the will (if there is one), pays the debts and passes what is left to the heirs. For someone who lived in Indianapolis, the estate is usually opened in Marion Superior Court's probate division.

The court appoints a personal representative, the person Indiana law puts in charge of the estate. It is often the executor named in the will, or a close family member if there is no will. The court gives that person a document, usually called letters, that shows banks, title companies and buyers they have the authority to act.

Indiana estates are run one of two ways:

• Unsupervised administration. The personal representative handles most things, including selling property, without asking the court's permission for each step. Courts allow this in many simpler estates, for example when the heirs agree.
• Supervised administration. The court oversees the estate more closely, and a sale of the house usually needs the court's approval first.

Probate takes months, not weeks, and longer when there are disputes, missing heirs or debts. Many families hire an estate attorney to handle the filings. You can look up any Indiana estate case on the state's public court site, MyCase.

Small estates

Indiana has a shortcut for smaller estates. For someone who died after June 30, 2022, the probate estate, less liens, encumbrances and reasonable funeral expenses, must not be more than $100,000, and at least 45 days must have passed since the death.

• For bank accounts, cars and other personal property, heirs can use a small estate affidavit instead of opening probate.
• For a house, Indiana has a separate affidavit that can be recorded with the recorder in the county where the house is, if the estate is under the same limit. It has specific required wording.
• Whether a house fits under the limit depends on its value and what is owed on it. An estate attorney can tell you in a short conversation, and the title company will want to see that the paperwork is right before anyone can sell.

Selling during probate

You usually do not have to wait for probate to finish to sell. Once a personal representative is appointed, they can generally sign a purchase agreement for the estate, and in supervised estates the court signs off on the sale. With a small estate affidavit or a transfer on death deed, the heirs who now own the house sign.

• Everyone with an ownership share signs. If three siblings inherited the house together, all three usually need to agree to the sale.
• The title company checks it all. It confirms who can sign, pays off any mortgage, back taxes and liens from the sale, and pays the estate or the heirs.
• Seller's disclosure form. Indiana normally requires sellers to fill out a property disclosure form, but estate sales by a personal representative are generally exempt. Your attorney or the title company can confirm.
• Timing. Pick a closing date that fits the court's timing and the family's plans. A good buyer will work around it.

Taxes, at a high level

• No Indiana inheritance tax for anyone who died after December 31, 2012. Indiana repealed it.
• Federal estate tax only applies to very large estates: for deaths in 2026, the basic exclusion is $15,000,000.
• Income tax when you sell is the question most families actually face. Inherited property often gets a new tax "basis" at its value on the date of death, which can make the taxable gain small if you sell soon after. The details depend on your situation, so talk to a tax professional before you sell.
• Property taxes keep coming. Deductions the owner had, like the homestead deduction, may change after a death, so check the next bill.

Cleaning out the house

This is often the hardest part. Some ideas that help:

• Go through papers first. Look for the will, deeds, insurance policies, account statements and anything with a password. Keep photos and letters for the family to sort later.
• Let family choose, in writing. A simple list of who takes what avoids hard feelings later. If probate is open, check with the personal representative before anything leaves the house.
• Then decide on the rest. Options include an estate sale company, donation, a junk removal service or a rented dumpster.
• You may not have to empty it at all. Some buyers, including us, will buy a house with belongings still inside.

Your options for the house

1. Keep it, to live in or rent out. The family takes on taxes, insurance and upkeep.
2. Fix it up and list it with an agent. Usually the highest price, if someone has the time and money to manage the work.
3. List it as-is with an agent. Works well when the house is livable and nobody is in a hurry.
4. Sell it as-is to a cash buyer. A lower price in exchange for no repairs, no cleanout and a closing date that fits the estate. Before you sign with anyone, read our checklist for sellers.