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Buying Raw Land

Your Parents Died Owning Land: What to Do First

By Erik Peterson8 min read
In this guide
  1. What actually has to happen
  2. First, find out how it was held
  3. Small estate shortcuts
  4. If there was no will
  5. The trap: heirs' property
  6. The tax bill does not wait
  7. What you get tax-wise
  8. The order to do this in
  9. Where Landopia fits in this
  10. FAQ: Inherited land

A note from Erik

I buy and sell rural land, and a fair share of what crosses my desk is ground somebody inherited and did not know what to do with. I am not an attorney, a CPA or a probate specialist, and nothing here is advice about your situation. What follows is the mechanics and the order to do them in, with the statutes and agency sources behind them, because the expensive mistakes here are mostly mistakes of delay. Sources at the bottom.

Your parents are gone and there is a piece of land with their name still on the deed. Maybe forty acres somebody's grandfather bought. Maybe a lot in a subdivision nobody has walked in twenty years. The tax bill still comes, addressed to a person who cannot open it.

Nobody wants to deal with this in the first year, and that is exactly the problem. Land left in a dead person's name does not sit still. It fractionates, it accrues unpaid taxes, and it can end up sold at auction or split among a dozen cousins who have never met. Every one of those outcomes is preventable and all of the prevention happens early.

Only child sorting out an estate, one of four siblings who need to agree on something, grandchild who just found out there is land, fella who would rather do anything than ring a courthouse? Y'all are in the right place. Here is the order to do this in.

What actually has to happen

Title does not move because everyone in the family agrees it should. It moves through a legal process, and which process depends on how the land was held.

Some property passes outside probate automatically. Land held in joint tenancy goes to the surviving joint tenant. Land in a living trust is handled under the trust document. Land subject to a life estate goes to the remainderman. Land with a recorded transfer on death deed goes to the named beneficiary. If any of those apply, the path is short.

Everything else generally goes through probate, which is the court process that establishes who is entitled to the property. California's court self-help site puts it plainly: probate is the legal process you must follow to transfer or inherit property. It is not optional just because the family is agreed, and the reason it exists is to make later disputes about ownership less likely.

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First, find out how it was held

Get a copy of the deed from the county recorder where the land sits. Not the county where your parents lived, if those are different. The deed tells you whose names are on it and how, and those words decide most of what follows.

If it says joint tenants with right of survivorship and one owner is still alive, the land is already theirs and the process is usually a recorded death certificate and an affidavit. If it says tenants in common, each owner's share passes through their own estate, which is the beginning of the fractionation problem. If there is a recorded transfer on death deed naming a beneficiary, that beneficiary takes it outside probate.

Transfer on death deeds are worth knowing about even now, because they are the tool that prevents the next round of this. A TOD or beneficiary deed conveys real property to a named person effective on the owner's death, is revocable any time while the owner lives, and does not require the beneficiary's consent or even knowledge. It has to be recorded before death to work. The Uniform Law Commission completed a uniform act for this in 2009 and roughly thirty jurisdictions now allow some version, though the count moves and you should check your own state rather than trust a number in an article.

Small estate shortcuts, and why they often do not help with land

Most states have a simplified procedure for small estates, usually an affidavit that skips court entirely. Here is the part that matters for a land question: those procedures were built around personal property, and whether they reach real estate is exactly where states diverge.

ItemColoradoArizona
Does it cover real property?No, explicitly excludedYes, under a separate affidavit
Threshold$88,000 for a 2026 death, adjusted annually$300,000 of Arizona real property, less liens
Waiting period10 days after deathSix months after death
Where it goesNo court filingFiled with the court, then recorded

Colorado's own instruction form says the affidavit cannot be used to transfer real estate and may only be used to collect personal property. Arizona's statute has a separate subsection for real property with its own threshold, its own six-month wait, and additional conditions including that funeral expenses, last illness expenses and all unsecured debts have been paid. Two neighbouring states, opposite answers, different numbers. Do not assume your state works like the one you read about, and check the state where the land is, which is not necessarily the state where your parents lived.

If there was no will

Then a statute decides who inherits, not the family. Arizona's is typical in shape: with no surviving spouse it runs to the decedent's descendants, then to parents, then to the descendants of parents, then splits between the paternal and maternal grandparents' lines. Each level is reached only if nobody survives at the level above.

The order varies by state, particularly the spousal share, and the state where the land sits governs the real property even if your parents lived and died somewhere else. That is a genuine trap for out-of-state heirs and it is worth asking about early.

USDA states the consequence directly: when a landowner dies without a will, the state decides who inherits, and the land ends up owned in common by all the heirs. Which brings us to the part of this article that matters most.

The trap: heirs' property

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When land passes to several people without probate being completed, they hold it as tenants in common. Each holds a separate undivided fractional share they can sell, mortgage or leave to their own heirs without asking anyone. Run that forward two generations and one parcel has a dozen owners across six states who have never met.

That is called heirs' property, and USDA defines it as family-owned land jointly owned by descendants of somebody whose estate did not clear probate, with each generation adding more heirs. It is not a rare edge case. USDA runs programs specifically for it.

Three things go wrong. Without clear title, heirs may be unable to access federal farm benefits or loan programs tied to ownership. Creditors generally will not accept fractionated property as collateral, so the land cannot do anything for the family that holds it. And the serious one: any single cotenant can force a partition, meaning a court-ordered sale of the entire parcel. Speculators buy a small share from one distant relative specifically in order to file that action, and the family loses the whole thing well below market value.

There is a legislative fix where states have adopted it, the Uniform Partition of Heirs Property Act, which adds notice to all cotenants, a court-ordered appraisal, a right of first refusal letting the other cotenants buy out whoever filed, and a commercially reasonable sale instead of a courthouse-step auction. More than twenty states and jurisdictions have enacted a version. But notice the condition that takes a parcel outside that statute entirely: a written agreement among the cotenants governing partition. The real fix is a document, written while everyone is still speaking, not a statute somebody else passed. If you are reading this while the estate is still fresh, that is the single most valuable hour you can spend. We wrote the other half of this from the other direction in buying land for your grandchildren.

The tax bill does not wait

What you get tax-wise, which is usually better than people expect

Two mechanics work in your favour here and both are worth knowing before you make decisions under the impression that selling will be expensive.

Basis resets. Property acquired from someone who has died generally takes as its basis the fair market value on the date of death, under section 1014 of the code. Whatever your parents paid for it in 1971 is irrelevant. If the land was worth $60,000 the day they died and you sell it for $62,000, the taxable gain is $2,000 rather than sixty-odd thousand. That single rule is the difference between a manageable sale and a painful one.

And the holding period is automatic. Gain or loss on inherited property is treated as long-term regardless of how long you actually held it, so selling three months after the death still gets long-term treatment. On Form 8949 you enter INHERITED rather than a purchase date.

Get a defensible date-of-death value while you still can. An appraisal is the clean way; the assessor's valuation is a fallback. Doing it years later from memory is how people end up in arguments with the IRS they did not need to have.

The order to do this in

Roughly in this sequence, because each one changes the next:

The order to do this in

  • Get the deed from the county where the land sits.

    Not where your parents lived. You are looking for how title was held, because joint tenancy, a trust, a life estate or a recorded transfer on death deed may mean there is no probate question at all.

  • Call the county treasurer and find out what is owed.

    Property taxes, and whether any certificate has been sold. This is the clock that runs whether or not anyone is paying attention, and it is the one that can lose you the land.

  • Find out whether there is a will, and where.

    If there is, it names an executor and a process. If there is not, the state's intestacy statute decides, and the state where the land sits governs the land.

  • Ask whether your state's small estate procedure reaches real property.

    Some do and some flatly do not. The answer decides whether you are filing an affidavit or opening a probate case.

  • Get a date-of-death value on the record.

    An appraisal is best, the assessor's figure is a fallback. This is your basis and it gets harder to establish every year that passes.

  • If several people are inheriting, write the agreement now.

    A written agreement among cotenants governing partition is what keeps a parcel out of the heirs' property problem. Do it while the family is still in the same room.

  • Then decide what you actually want to do with it.

    Keep it, split it, or sell it. That decision is much easier once the four items above are settled, and nearly impossible before.

Where Landopia fits in this

Sometimes the honest answer is that nobody in the family wants forty acres eleven hours away, and the kindest thing is to turn it into money everyone can split. We buy rural parcels and we will tell you plainly what we can pay, which is less than a patient retail sale would bring, because speed and certainty are what we are selling. If you have time and the parcel is desirable, list it with a land broker instead and you will likely net more. We laid out all three routes, and what each one costs you, in the guide to selling raw land.

One thing we will not do is make an offer on ground where title is not settled, because we cannot buy what cannot be conveyed. If you are somewhere in the middle of this, our Land Specialists can look at the parcel number and county and tell you what we would need to see. And if the land is worth keeping, keep it. Read what the numbers actually show about land values before anybody talks you into a quick sale, including me.

If the family is leaning toward keeping it, one cheap sanity check is to look at what comparable acreage is actually listed for right now. Our investment land listings are searchable by state and acreage, and an hour spent there will tell you more about what the parcel is worth than any number a relative remembers from the closing.

See All Available Land

The land your parents left is not a problem to be solved in the first hard month. It is a set of phone calls that get more expensive every year nobody makes them. Get the deed, call the treasurer, find out what process applies, and put a value on the record.

Families lose ground to paperwork far more often than they lose it to anything dramatic. Whatever you decide to do with it in the end, decide it on purpose.

Frequently Asked Questions About Inherited Land

Do I have to go through probate to inherit land?

Not always. Land held in joint tenancy, in a trust, subject to a life estate, or covered by a recorded transfer on death deed passes outside probate. Everything else generally goes through it, and the process establishes who is legally entitled so that ownership disputes are less likely later.

Can I use a small estate affidavit for land?

Depends entirely on the state. Colorado's affidavit explicitly cannot transfer real estate. Arizona's can, under a separate provision with a $300,000 real property threshold and a six-month wait. Check the state where the land sits, which may not be where your parents lived.

What happens if we just leave it in their name?

It becomes heirs' property. Ownership fractionates with every generation, the title is clouded so the land cannot be sold or borrowed against easily, and any single cotenant can force a court-ordered sale of the whole parcel. Meanwhile the property tax lien keeps running against the land itself.

Will I owe tax if I sell inherited land?

Only on gain above the date-of-death value, because the basis generally resets under section 1014. If it was worth $60,000 when they died and you sell for $62,000, the gain is $2,000. Inherited property is also treated as long-term regardless of how briefly you held it. Talk to a CPA about your situation.

What if the property taxes have not been paid in years?

Call the county treasurer immediately and find out the balance and whether a tax certificate has been sold. The lien attaches to the parcel rather than to a person, so it does not pause because an estate is unsettled. Redemption rights exist in every state but the periods and mechanics vary widely.

What if my siblings and I disagree about what to do?

Understand first that any one of you can generally force a partition, meaning a court-ordered sale of the whole parcel, whether or not the rest agree. Knowing that tends to focus the conversation. A written agreement among the co-owners is the tool that governs how that goes, and it is also what takes the parcel outside the heirs' property statutes.

Do we need an appraisal?

Something establishing the date-of-death value, yes, because that number becomes the basis and determines what tax is owed if anyone ever sells. A formal appraisal is the clean version and the county assessor's valuation is a fallback. It only gets harder to establish as time passes.

Can we sell the land before probate finishes?

Generally not, because you cannot convey what you do not yet have clear title to, and no buyer or title company will close on it. That is the single most common reason an inherited land sale falls apart at the last minute. Settle title first, then sell.

Sources & notes14
  1. California Courts Self-Help, Probate. Probate is the legal process required to transfer or inherit property, and the categories of property that pass outside it. Accessed Sep 2026.
  2. Colorado Judicial Branch Self-Help, Open an Estate, and instruction form JDF 998. The collection of personal property by affidavit under C.R.S. 15-12-1201 cannot be used to transfer real estate; $88,000 threshold for a 2026 death, adjusted annually; 10-day wait.
  3. Arizona Revised Statutes section 14-3971. Separate affidavit for real property where Arizona real property net of liens does not exceed $300,000, available no sooner than six months after death, with conditions on debts and expenses.
  4. Arizona Revised Statutes section 33-405, beneficiary deed. A recorded deed conveying real property effective on the owner death, revocable during life and requiring no consent or notice to the beneficiary.
  5. Revised Code of Washington chapter 64.80, Uniform Real Property Transfer on Death Act, a state enactment of the 2009 uniform act.
  6. Arizona Revised Statutes section 14-2103. Intestate succession order where there is no surviving spouse: descendants, then parents, then descendants of parents, then grandparents and their descendants.
  7. USDA Farm Service Agency, Heirs Property: What You Need to Know. When a landowner dies without a will the state decides who inherits and the land is owned in common by all heirs; the resulting cloud on title blocks sale, lease, loans and federal program access, and one owner can force a court-ordered sale.
  8. USDA, Heirs Property Eligibility. Definition of heirs property as family-owned land jointly owned by descendants of a person whose estate did not clear probate, with each generation adding heirs.
  9. Uniform Law Commission, Uniform Partition of Heirs Property Act. Notice to cotenants, court-ordered appraisal, right of first refusal, and commercially reasonable sale; the written cotenant agreement that takes a parcel outside the act.
  10. Oklahoma State University Extension, Probate. The purpose of probate and the priority order for appointing an administrator.
  11. IRS, Gifts and Inheritances FAQ, and 26 U.S.C. section 1014. The basis of inherited property is generally the fair market value at the date of death.
  12. IRS, Instructions for Form 8949. Report the disposition of inherited property as long-term regardless of how long it was held, entering INHERITED as the acquisition date.
  13. Florida Statutes sections 197.502 and 197.472. A tax deed application may be made once two years have passed since April 1 of the year of certificate issuance, and a certificate may be redeemed at any time before a tax deed is issued.
  14. Alabama Cooperative Extension System, tax sales. The general sequence from delinquency notice through advertisement, tax certificate and tax deed, and the right of redemption.

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