Inheriting a home in Lancaster County puts a lot of decisions in front of you at once — and usually during one of the hardest times of your life. Should you sell? Keep it? Rent it out? And before any of that, can you actually do anything with the property yet?
The short answer: probably not immediately. Pennsylvania has a specific legal process that has to happen first. But once you understand how it works, the path forward is clearer than it might feel right now.
Here’s what Lancaster County heirs need to know about selling an inherited home — from probate to settlement.
The Probate Question: Can You Sell Right Away?
The first question most heirs ask is whether they can just list the home and sell it. In most cases, the answer is no — not yet.
If the property was titled solely in the deceased person’s name, it has to go through Pennsylvania probate before it can be sold. Probate is the legal process that validates a will (if there is one), appoints an executor, and gives that person the authority to manage and distribute estate assets — including real estate.
There is one significant exception: if the deed included a right of survivorship, the property passes automatically to the surviving owner without probate. This is common for homes owned jointly by spouses. If you’re not sure how the deed was titled, a real estate attorney or title company can pull the deed from Lancaster County records and check.
For properties that do require probate, the process starts by filing a petition with the Lancaster County Court of Common Pleas — Orphans’ Court Division. From there, the court validates the will, formally appoints the executor, and issues Letters Testamentary, which is the document that gives the executor legal authority to act on behalf of the estate. Without it, no one can legally sign a listing agreement or a deed.
How long does this take? It varies. Simple estates with a clear will and no disputes can move through probate in a few months. More complex situations — contested wills, multiple heirs who can’t agree, estates with debts, or properties that require ancillary probate (which can happen if the decedent owned property in Pennsylvania but lived in another state) — can take considerably longer. Plan for at least several months before you’re in a position to list.
In the meantime, the estate is responsible for ongoing costs: property taxes, homeowner’s insurance, utilities, and any maintenance the home needs. These costs continue to accumulate whether you’re ready to sell or not — which is one reason many heirs prioritize moving through probate as efficiently as possible.
Pennsylvania Inheritance Tax: What Your Family Will Owe
Pennsylvania is one of a small number of states that still charges a state-level inheritance tax — and it applies to real estate. This is separate from federal estate tax (which applies only to very large estates) and separate from capital gains tax. It’s a tax on the privilege of inheriting, and it kicks in regardless of estate size.
The rates depend on your relationship to the person who died:
- Surviving spouse: 0%
- Children, grandchildren, and other lineal heirs: 4.5%
- Siblings: 12%
- All other heirs (friends, nieces/nephews, unrelated individuals): 15%
The tax is calculated on the fair market value of the property at the date of death — not the eventual sale price. So if a home was worth $400,000 when the owner passed, a child inheriting it would owe approximately $18,000 in inheritance tax, regardless of whether the family holds the property for two months or two years before selling.
The Pennsylvania inheritance tax is due within nine months of the decedent’s death. There is a meaningful incentive to pay early: Pennsylvania offers a 5% discount on the tax if it’s paid within three months. On an $18,000 bill, that’s $900 back — worth factoring into your timeline if liquidity allows.
One important note on capital gains: when you inherit property, your cost basis is stepped up to the fair market value at the date of death. This means that if you sell the property shortly after inheriting it for roughly the same value as the date-of-death appraisal, there may be little to no capital gains tax owed. If the property has appreciated significantly since the date of death, you may owe capital gains on that gain. For the Pennsylvania-specific rules on how the state’s flat 3.07% income tax applies to a home sale, see our post on whether Pennsylvania home sellers owe capital gains tax.
The Sale Itself: Disclosures, Costs, and What to Expect at Settlement
Once probate is complete and the executor has authority to sell, the mechanics of the actual sale work similarly to any other home sale in Lancaster County — with a few things worth knowing.
You still need a Seller’s Property Disclosure Statement. Pennsylvania requires all residential home sellers to complete this form — even for as-is sales. The disclosure covers the condition of the roof, foundation, electrical, plumbing, HVAC, water and sewage systems, and known environmental hazards including lead, asbestos, and radon. As the executor or heir, you’re expected to disclose what you know. If the home belonged to an elderly family member who handled their own maintenance, you may genuinely not know the history of certain systems — answering “Unknown” is permitted, but be prepared for buyers to ask follow-up questions or request inspections.
For homes that need updates, as-is sales are common in inherited property situations. Buyers understand that an estate home may have deferred maintenance, and many investor buyers actively seek these properties. You’ll typically receive below-market offers for as-is homes — buyers price in their expected repair costs — but you avoid the uncertainty of managing contractor work from a distance or on a tight timeline.
Realty transfer tax still applies. The Pennsylvania realty transfer tax exemption for inherited property covers the estate distributing the home to an heir. When you sell to an outside buyer, you’re back in regular territory: total transfer tax of 2% in most Lancaster County municipalities (1% state, 1% local), typically split 1% buyer and 1% seller in the agreement of sale. On a $350,000 home, that’s $3,500 each. You can see a full breakdown of what sellers pay at settlement in our post on what closing costs sellers pay in Lancaster County.
Settlement logistics as an executor. When the time comes, settlement in Pennsylvania is handled by a title company — and as executor, you’ll sign the deed on behalf of the estate. If there are multiple heirs who are all beneficiaries of the estate, you don’t all need to be at the settlement table; the executor acts as the legal representative. The estate receives the proceeds, and distribution to individual heirs happens separately through the estate administration process.
One thing that catches heirs off guard: if any heirs received their inheritance tax bills and paid them individually (rather than through the estate), keep careful records. The estate attorney and title company will want documentation showing the inheritance tax has been paid or is being paid from proceeds at settlement.
Every inherited property situation is different — the number of heirs, the condition of the home, the estate’s debt obligations, and the heirs’ individual tax situations all affect how this plays out. That’s exactly the kind of thing I walk executor clients through before we even get to the listing stage.
Frequently Asked Questions
Do you have to go through probate to sell an inherited home in Pennsylvania?
In most cases, yes. If the home is titled solely in the deceased person’s name, it must pass through Pennsylvania probate before it can be sold. Probate grants the executor legal authority to manage and transfer estate assets, including real estate. The exception is if the deed included a right of survivorship — in that case, the property passes automatically to the surviving owner without probate.
What is Pennsylvania’s inheritance tax on a home?
Pennsylvania’s inheritance tax rates depend on your relationship to the deceased: 0% for a surviving spouse, 4.5% for children and lineal heirs, 12% for siblings, and 15% for all others. The tax applies to the fair market value of the property at the time of death, not the eventual sale price. It is due within nine months of the decedent’s death, but a 5% discount is available if paid within three months.
Can you sell an inherited home as-is in Pennsylvania?
Yes, but “as-is” does not mean without disclosure. Pennsylvania law requires sellers to complete a Seller’s Property Disclosure Statement covering all known material defects, regardless of whether the home is marketed as-is. The disclosure must be delivered to the buyer before they sign the agreement of sale.
Do you pay capital gains tax when you sell an inherited home in Pennsylvania?
Your cost basis in inherited property is stepped up to the fair market value at the date of death — which significantly reduces or eliminates capital gains tax if you sell shortly after inheriting. If the property has appreciated since the date of death, you may owe capital gains on that gain. For Pennsylvania’s specific rules, consult a tax professional or see our post on whether Pennsylvania home sellers owe capital gains tax.
Who pays the Pennsylvania realty transfer tax when selling an inherited home?
When heirs sell an inherited home to a third-party buyer, Pennsylvania realty transfer tax applies. The exemption for inherited property only covers the estate distributing the home directly to an heir — not a sale to an outside buyer. In most of Lancaster County, total transfer tax is 2% (1% state, 1% local), typically split evenly between buyer and seller in the agreement of sale.
Selling an inherited property in Lancaster County involves more moving parts than a typical home sale — probate, inheritance tax timing, disclosure obligations, and sometimes heirs who are all weighing in from different places. The good news is that once you understand the sequence, it’s manageable.
If you’ve recently inherited property in Lancaster County and you’re trying to figure out your next steps, I’m happy to walk you through what the process typically looks like and what the current market means for your timing. Reach out anytime at lancasterhome.com or give us a call — no pressure, just a conversation.
About Craig Hartranft
Craig Hartranft is a top-ranked Lancaster County REALTOR® and Founder of The Craig Hartranft Team, Berkshire Hathaway’s #1 real estate team in Lancaster County, with 460 homes sold and $195M+ in sales in 2025, plus over 1,400 five-star reviews across Google and Zillow.