Inheriting a house in New York is rarely as simple as receiving the keys. The property has to move through Surrogate's Court — either as part of a probate proceeding when there is a will, or as an administration proceeding when there is not — before the named heir or appointed administrator has the legal authority to sell, refinance, or otherwise transfer the home. Until that authority is in writing, even a fully agreed-upon sale generally cannot close.
This complete guide walks through every stage of the process so you know what to expect: the difference between dying with and without a will, the Surrogate's Court timeline in each county, what happens when multiple heirs disagree, whether you can sell mid-probate, the real costs involved, and how federal and New York tax rules — including the step-up in basis — affect what you ultimately keep.
With a Will vs Without a Will
When the deceased left a valid will, the document names an executor and specifies who inherits the property. The executor files the will with Surrogate's Court in the county where the deceased lived, and once the court issues Letters Testamentary, the executor has authority to manage and sell the property on behalf of the estate.
When there is no will, New York's intestacy statute decides who inherits — spouse first, then children, then parents, then siblings, then more distant relatives. The court appoints an Administrator (often a close family member) and issues Letters of Administration. The Administrator has the same powers as an executor, but the family doesn't choose who fills the role; the court does, based on a statutory order of priority.
The Surrogate's Court Process
Each New York county runs its own Surrogate's Court. The petition is filed in the county where the deceased was domiciled, along with the original will (if one exists), a death certificate, and a list of interested parties. Every heir and beneficiary must receive formal notice of the proceeding.
Once notice is satisfied and any objections are resolved, the court issues Letters that formally empower the executor or administrator. From this point forward, that person can sign deeds, list the property, settle debts, and ultimately distribute remaining assets.
Realistic Timelines
An uncontested probate in New York typically takes six to twelve months from filing to the issuance of Letters and final distribution. Contested estates — where heirs challenge the will, dispute decisions, or disagree about the property — can stretch to two, three, or more years.
Throughout the entire period, the home keeps incurring property taxes, insurance, utilities, and maintenance costs. Estates with limited cash often need to sell sooner rather than later just to keep these carrying costs from eating into the eventual inheritance.
When There Are Multiple Heirs
Multiple heirs are one of the most common — and most complicated — inheritance scenarios. While the estate is open, the executor or administrator generally has authority to sell estate property in the beneficiaries' interest. Once the home has been distributed and the heirs hold it as co-owners, every co-owner usually needs to agree before a sale can move forward.
If agreement can't be reached, any co-owner can file a partition action to ask the court to force the sale. Partition actions are slow, costly, and tend to permanently damage family relationships, which is why early honest conversations among heirs are so valuable.
Selling During Probate
Yes, a house can be sold during probate in New York, but the executor must have Letters in hand and, in some cases, court approval of the sale terms. Surrogate's Court will sometimes encourage an early sale when the estate needs cash to pay debts or when carrying costs are eating into value.
Heirs and executors often start the preparation work — talking with buyers, getting valuations, gathering title and tax documents — well before Letters are issued, so they can move quickly the moment authority is granted.
Costs to Plan For
Probate in New York comes with court filing fees (which scale with the size of the estate), attorney fees, executor or administrator commissions set by statute (a percentage of the estate), appraisal fees, and the carrying costs of the property for the entire time the estate is open.
On top of that, if the property has a mortgage, taxes, liens, or violations attached to it, those have to be settled out of estate proceeds at or before closing. A clear-eyed look at total costs upfront helps families decide whether to sell sooner or hold longer.
Tax Implications: The Step-Up in Basis
One of the most valuable rules for heirs is the federal step-up in basis. The cost basis of an inherited property resets to its fair market value on the date of death, which generally means heirs pay capital gains tax only on appreciation that occurs after they inherit — not on decades of growth before.
New York has its own estate tax with a separate threshold and a 'cliff' that can dramatically increase tax owed if the estate exceeds it. For larger estates, talking with a CPA or estate attorney before any sale is essential. For most families, the step-up in basis means a near-immediate sale at fair market value triggers little to no capital gains tax.