The Complete California
Executor Guide: Probate
Real Property Step by Step

You've been named executor of a California estate. Whether you were expecting this or it arrived without warning, you now hold legal authority — and significant responsibility — over the estate's assets, including real property. For most executors, selling real property is the largest, most complex, and highest-stakes task of the entire administration. This guide covers everything you need to know: how to establish your authority, navigate the probate process, sell estate property effectively, manage taxes, and bring the administration to a proper close. It is written from the perspective of a California real estate broker and attorney who has guided executors through exactly this process.

What is an Executor and How Does the Role Begin?

Unlike a successor trustee, whose authority derives from the trust document and takes effect immediately upon the grantor's death, an executor's authority does not begin until the probate court formally appoints them. This court-granted authority is what distinguishes probate administration from trust administration — and it is the reason probate takes longer and costs more.

When someone dies owning real property in their individual name — without a trust, without joint tenancy, without a beneficiary designation — that property must generally pass through California probate before it can be transferred or sold. The probate court supervises the process to protect creditors, ensure proper accounting, and verify that assets are distributed correctly under the will or California's intestate succession laws.

When Probate is Required for Real Property

California probate is required for real property when: the property was held solely in the deceased's individual name, the estate's gross value exceeds $184,500 (adjusted periodically for inflation), and no other transfer mechanism applies. Joint tenancy with right of survivorship, community property with right of survivorship, and property held in a living trust all transfer outside of probate. When the deed shows only the deceased's name with no surviving co-owner and no trust designation, probate is almost certainly required.

Your First Steps — What to Do Before Filing for Probate

• 1

  Secure the estate's real property immediately

  Change locks, maintain utilities, verify insurance is in force, and address any urgent maintenance issues. Notify the homeowner's insurance company of the death — some policies have notification requirements. A vacant property is a liability; act quickly.

• 2

  Locate the original will

  Find the original will — not a copy. The probate court requires the original. Common locations: safe deposit box, home safe, attorney's office, or with a family member. If you cannot find the original, an attorney can advise on next steps.

• 3

  Order death certificates

  Order at least 10-12 certified copies from the funeral home or county vital records office. The court, every financial institution, government agencies, and the title company will each require an original certified copy.

• 4

  Hire a probate attorney

  California probate involves court filings, hearings, legal notices, and documents that require expertise to prepare correctly. Executor errors can create personal liability. A probate attorney's fees are paid from estate assets — not your personal funds — and are set by California statute.

• 5

  Do not distribute anything yet

  Before you have court authority and before creditors have been paid, distributing estate assets — even personal property of modest value — can create personal liability. Wait until you have Letters Testamentary and have addressed creditor claims.

Filing for Probate — The Petition Process

Probate begins when you file a petition with the Superior Court in the county where the deceased resided at the time of death. For most Southern California estate property, this means the Los Angeles Superior Court (Probate Division), the San Diego Superior Court, or the Orange County Superior Court.

What the Petition Includes

The petition for probate includes: the original will (if any), a certified copy of the death certificate, a list of the deceased's heirs and beneficiaries, an estimate of the estate's gross value, and the required court filing fees. Your probate attorney prepares these documents.

The Initial Hearing

After the petition is filed, the court sets an initial hearing date — typically 4 to 8 weeks later in most California counties. At this hearing, the judge reviews the petition, admits the will to probate (verifying its authenticity), formally appoints you as executor, and issues Letters Testamentary. This hearing is also when IAEA authority — the most important early determination in the case — is requested and granted or denied.

The Publication Requirement

California law requires that notice of the probate be published in a local newspaper of general circulation at least once a week for three consecutive weeks. This notice informs creditors that the estate is in probate and that they have a limited time to file claims. Your probate attorney handles this publication requirement.

Letters Testamentary — Your Authority Document

Letters Testamentary are issued by the court at the initial hearing after you are formally appointed as executor. You will need multiple certified copies — typically 6 to 8. Every institution that controls estate assets will require an original certified copy before allowing you to operate on the estate's behalf.

The scope of your authority under Letters Testamentary depends on whether the court grants IAEA authority (discussed below). Without IAEA authority, you have the power to manage estate assets but must obtain court confirmation for major transactions including real property sales. With IAEA authority, you can sell real property through a simplified notice process rather than court confirmation.

IAEA Authority — The Most Important Decision in Probate

The Independent Administration of Estates Act (IAEA) is California's mechanism for allowing executors to manage and sell estate assets with reduced court supervision. Requesting IAEA authority at the initial hearing is one of the most important decisions in a California probate administration.

What IAEA Authority Allows

Under full IAEA authority, an executor can sell real property without court confirmation — replacing the formal court hearing with a 15-day notice period to heirs. If no heir objects within the notice period, the sale closes like a standard real estate transaction. This can reduce the probate sale timeline by 2 to 4 months and eliminate the uncertainty of the overbid process.

How to Get IAEA Authority

IAEA authority is granted by the court at the initial hearing. It can be granted automatically if the will permits independent administration (most California wills include this language), or with the consent of all heirs. If any heir objects to IAEA authority at the initial hearing, the court will deny it — and all major estate transactions will require court confirmation.

IAEA Limitations

Even with IAEA authority, certain transactions are not permitted without court approval — including selling property to the executor personally, certain self-dealing transactions, and situations where the sale price is contested by heirs. IAEA authority does not eliminate the fiduciary duties of the executor; it only changes the procedural mechanism for court oversight.

The Probate Referee Appraisal

After you are appointed as executor, the court assigns a probate referee — a licensed appraiser appointed by the California State Controller's Office — to appraise all estate assets as of the date of death. For real property, the probate referee conducts a formal appraisal and establishes the official appraised value.

Why the Appraisal Matters

The probate referee's appraised value serves two critical functions. First, for court confirmation sales, it establishes the minimum acceptable offer — any accepted offer must be at least 90% of the appraised value. Second, it establishes the property's fair market value on the date of death, which is used to calculate the stepped-up basis for capital gains tax purposes.

The Referee's Fee

The probate referee's fee is set by California statute at 0.1% of the appraised value of the assets appraised. For a property appraised at $900,000, the referee fee is $900. This fee is an estate expense paid from estate assets.

Can You Dispute the Appraisal?

If the probate referee's appraised value seems inaccurate — either too high or too low — you can obtain an independent appraisal and petition the court to use it instead. However, this adds time and cost. Most executors accept the referee's appraisal unless there is a compelling reason to dispute it.

Notifying Creditors and Paying Debts

One of the executor's primary obligations is to identify, notify, and pay the estate's valid creditors before distributing assets to heirs. Distributing assets before paying creditors can expose you to personal liability — creditors can pursue you personally if estate assets have already been distributed.

The Creditor Claim Period

After the notice to creditors is published, creditors have a limited window to file claims against the estate — generally the later of four months from the date Letters Testamentary are issued or 60 days from the date the creditor received actual notice. Claims filed after this period are generally barred.

Evaluating and Paying Claims

As executor, you must review each creditor claim and determine whether it is valid. Valid claims include credit card debt, medical bills, mortgage balances on estate property, utility bills, and similar obligations. You must pay valid claims from estate assets before making any distributions to heirs. If the estate lacks sufficient assets to pay all claims, California law establishes a priority order for payment.

Listing Estate Real Property — When and How

One of the most important timing decisions in a probate administration is when to list estate real property for sale. The answer, in almost every case, is: as soon as you have Letters Testamentary.

Why List Early

Many executors make the mistake of waiting until the entire probate process is more advanced before listing the property. This is almost always wrong. There is no requirement to wait. You can list the property and accept an offer long before the probate is complete — you simply cannot close escrow until the court confirms the sale (or, under IAEA, until the notice period expires).

Listing early means you can be under contract with a buyer who is prepared to close as soon as court authority is obtained. This can reduce the total administration timeline by months. Carrying costs — property insurance, property taxes, maintenance, and utilities — accumulate every month the property sits unsold. Listing early and moving efficiently saves the estate money.

Preparing the Property for Sale

Estate properties are often sold as-is, reflecting the reality that the executor may have limited knowledge of the property's condition and limited ability to make repairs. Selling as-is is not necessarily a disadvantage — many buyers expect and price for estate property conditions, and the time and cost of making repairs often exceed the value they add to the sale price.

At minimum: clean out the property, address any obvious safety hazards, maintain landscaping, and ensure utilities are operational for showings. A home that presents reasonably well attracts better buyers and better offers than one that appears neglected.

Pricing Probate Property — The 90% Rule and Beyond

Pricing probate property involves both a legal constraint and a strategic decision. Understanding both is essential to your fiduciary duty and to maximizing estate value.

The 90% Rule for Court Confirmation

For sales requiring court confirmation, the California Probate Code requires that any accepted offer be at least 90% of the probate referee's appraised value. If the property is appraised at $1,000,000, the minimum acceptable offer for court confirmation purposes is $900,000.

This is a floor, not a target. The appraised value is established as of the date of death and may not reflect current market conditions at the time of listing, which may be months later. In a rising market, the property may be worth significantly more than the appraised value. In a declining market, it may be worth less — and you may need to petition for a reappraisal if the appraised value exceeds current market value.

The Strategic Pricing Consideration

A skilled probate agent understands that how you price the property affects both the sale price and the overbid dynamics at the court confirmation hearing. Pricing at exactly 90% of appraised value can attract buyers who are aware that overbidding at the court hearing could increase the price — some buyers discount their offer knowing they may be overbid. Pricing closer to full market value signals to buyers that the property is properly priced and may reduce the overbid risk.

Your fiduciary duty requires you to maximize value for the estate. Work with your probate agent to develop a pricing strategy that is informed by both the 90% floor and current market conditions.

The Court Confirmation Process

For probate sales that do not proceed under IAEA authority, the court must confirm the sale before it can close. This is one of the most distinctive and misunderstood aspects of California probate real estate.

Filing the Petition for Court Confirmation

After you accept an offer, your probate attorney files a petition for court confirmation of the sale. The petition includes: the accepted offer price, the buyer's identity and qualifications, the terms of the sale, and a request that the court confirm the sale at the hearing. The court sets a hearing date — typically 4 to 8 weeks after filing.

Notice Requirements

At least 15 days before the court confirmation hearing, notice must be mailed to all heirs and beneficiaries and to the buyer. This notice informs them of the hearing date, the accepted sale price, and their right to appear at the hearing and submit overbids.

The Hearing

At the court confirmation hearing, the judge reviews the proposed sale. If no overbid is submitted and the terms are reasonable, the court confirms the sale and issues an Order Confirming Sale of Real Property. This order authorizes you to close escrow. After the hearing, the sale proceeds on a standard real estate closing timeline.

The Overbid Process — Explained in Detail

The overbid process is California's mechanism for ensuring that probate property achieves fair market value through open competition at the court confirmation hearing. Understanding it thoroughly — and communicating it clearly to your buyer — is essential.

Who Can Overbid

Any member of the public can appear at the court confirmation hearing and submit an overbid on the property. They do not need to have submitted an offer during the listing period. They do not need prior approval from the court or the executor. Anyone who shows up at the hearing with the minimum deposit and the ability to meet the minimum overbid is eligible to participate.

The Minimum Overbid Formula

The minimum first overbid is calculated as follows: the accepted offer price plus the greater of $500 or 10% of the first $10,000 of the accepted price plus 5% of the balance above $10,000.

For example: if the accepted offer is $950,000, the minimum overbid is $950,000 + $500 + (($950,000 - $10,000) × 5%) = $950,000 + $500 + $47,000 = $997,500.

After the first overbid, subsequent overbids proceed in increments set by the judge — typically $5,000 to $10,000 for higher-value properties.

The Deposit Requirement

An overbidder must present a cashier's check for 10% of the minimum overbid amount at the hearing. This demonstrates financial seriousness and is the deposit that will be applied to the purchase if the overbidder wins. The deposit of the losing bidder is returned at the close of the hearing.

What Happens if There is an Overbid

If one or more overbids are submitted, the judge conducts an open auction in the courtroom between the original buyer and all overbidders. Participants bid in the increments set by the judge until only one bidder remains. The court confirms the sale to the highest bidder. The original buyer who loses the overbid gets their deposit returned. The winning overbidder enters a purchase contract at the court-confirmed price.

Strategic Implications for the Estate

The overbid process can result in the estate receiving significantly more than the originally accepted offer — which benefits the beneficiaries. A well-priced property that generates buyer interest before the hearing sometimes results in overbid competition that drives the price well above the listed amount. Your probate agent's experience with managing this dynamic is a meaningful factor in agent selection.

Selling Under IAEA — The Faster Path

If you have full IAEA authority, you can sell estate real property through a significantly simpler process that avoids court confirmation entirely.

The IAEA Notice Process

After accepting an offer under IAEA authority, you send a Notice of Proposed Action to all heirs and beneficiaries. The notice describes the proposed sale — the buyer, the price, and the key terms — and states that the sale will proceed in 15 days unless an heir objects in writing. If no heir files a written objection within 15 days, escrow closes on the normal timeline. If an heir objects, you must obtain court confirmation before closing.

IAEA vs. Court Confirmation — The Timeline Comparison

Choosing the Right Probate Real Estate Agent

The selection of your real estate agent is itself a fiduciary decision in a probate administration. Choosing an agent without demonstrated probate experience because they are convenient, familiar, or less expensive is not fulfilling your obligation to maximize estate value.

What Differentiates a Probate Agent

A genuine probate specialist understands the 90% pricing rule and knows how to set prices strategically within it. They know the local court's procedures and timelines. They have experience communicating with probate attorneys and understand how to keep the transaction moving within the court's timeline constraints. They know how to advise buyers about the overbid process honestly. And critically — they know how to manage buyer expectations through an escrow period that may be 2-3 times longer than a standard sale.

Questions to Ask a Potential Probate Agent

How many probate property sales have you completed in this county in the past 12 months? Have you worked with the probate court in this county before? How do you handle buyers who are unfamiliar with the court confirmation process? Can you provide references from executors or probate attorneys you have worked with? What is your approach to pricing when the referee's appraised value is significantly below current market value?

Closing the Probate Sale

After court confirmation (or after the IAEA notice period expires without objection), escrow closes following standard California real estate procedures — with several additional documentation requirements.

Documents Required

Order Confirming Sale — for court confirmation sales, the title company requires a certified copy of the Order Confirming Sale of Real Property before closing. Provide this promptly when received.

Executor's Deed (Probate Grant Deed) — you sign the grant deed as "Executor of the Estate of [Decedent's name], [Case Number]" rather than in your individual capacity. The title company prepares this deed.

Preliminary Change of Ownership Report (PCOR) — filed with the county recorder at closing. For probate sales, Proposition 19 reassessment rules apply depending on the buyer's relationship to the deceased.

Distributing Sale Proceeds

Sale proceeds are deposited into the estate's bank account. Do not distribute sale proceeds directly to heirs — they must flow through the estate account, be accounted for in the final accounting, and be subject to payment of remaining estate debts and expenses before distribution.

Estate and Probate Taxes

Probate administration involves multiple tax obligations that must be addressed before final distributions. As executor, you are personally responsible for ensuring these obligations are met.

The Decedent's Final Income Tax Return

The deceased's final individual income tax return (Form 1040) covers January 1 of the year of death through the date of death. It is due April 15 of the following year, with extensions available. If the deceased was married, the surviving spouse may file a joint return for that year — consult a CPA about whether this is advantageous.

The Estate Income Tax Return

During the probate administration, the estate is a separate taxable entity and must file its own income tax returns: Form 1041 (federal) and California Form 541 (state) for each year (or partial year) the estate has income. Estate income includes interest earned on estate accounts, rental income from estate property, and capital gains from the sale of estate assets.

The sale of estate real property generates the largest taxable event in most probate administrations. The estate pays capital gains tax on the difference between the sale price and the property's stepped-up basis (discussed below). Proper management of this calculation is critical and requires an experienced CPA.

Federal Estate Tax

Federal estate tax applies to estates exceeding approximately $13.6 million per individual (2024, subject to change). For most California probate estates, the federal estate is below this threshold. However, California real estate values are high enough that multi-property estates can approach this threshold. If the gross estate may be taxable, a CPA or estate tax attorney should evaluate it promptly — the estate tax return (Form 706) is due nine months after the date of death.

The Stepped-Up Basis in Probate

Just as in trust administration, the stepped-up basis is the most important tax concept for executors selling real property through probate. Understanding it — and taking full advantage of it — can save the estate (and ultimately the heirs) significant tax liability.

When real property passes through a California probate estate, the estate's cost basis in the property is stepped up to the fair market value of the property on the date of death. This is the same rule that applies to trust property. The probate referee's appraised value typically establishes this stepped-up basis — which is why it matters for tax purposes even if the property sells for more than the appraised value.

If the property appraises at $1,500,000 on the date of death and sells for $1,550,000 six months later, the estate's taxable capital gain is approximately $50,000 — not the $1,465,000 that would have been taxable if the original purchase price of $35,000 were used as the basis. The stepped-up basis can reduce the estate's tax liability by hundreds of thousands of dollars on a highly appreciated California property.

Executor and Attorney Fees in California

California law sets executor and attorney fees by statute — based on the gross value of the estate. These are among the most misunderstood aspects of California probate.

The Statutory Fee Schedule

Both the executor and the attorney are each entitled to this full fee schedule — separately. On a $1,000,000 estate, both the executor and the attorney can each claim $23,000, for a combined statutory fee of $46,000.

Gross Value — Not Net

The statutory fees are calculated on the gross value of the estate — not the net. If the estate includes a home worth $1,500,000 with a $500,000 mortgage, the statutory fees are calculated on $1,500,000 — not the $1,000,000 net equity. This means statutory fees on heavily mortgaged properties can consume a significant portion of the actual equity.

Extraordinary Fees

In addition to statutory fees, executors and attorneys can petition the court for extraordinary compensation for services beyond the normal scope of administration — contested claims, tax audits, litigation, and similar complications. These extraordinary fees must be approved by the court and documented with detailed time records.

The Final Accounting

Before the court approves final distribution, the executor must file a final accounting with the probate court. This accounting is a complete financial statement of the entire estate administration — every dollar that came in and every dollar that went out.

What the Accounting Includes

The final accounting includes: all assets received by the estate (inventory and appraised values), all income earned during the administration (interest, rent, and gains from asset sales), all expenses paid (attorney fees, executor fees, taxes, insurance, maintenance, and all other costs), all prior distributions if any, and the proposed final distribution to each heir.

Waiver of Accounting

All heirs can sign a written waiver of the formal accounting, acknowledging that they have received sufficient information and consenting to the proposed distribution without a formal court-filed accounting. This is common in uncontested estates and saves time and cost. However, even with a waiver, you should provide each heir with a clear written statement showing what the estate received, what it spent, and what each heir will receive.

Final Distribution and Closing the Estate

After the accounting is approved and all obligations are satisfied, the court issues an Order for Final Distribution authorizing you to distribute the estate's remaining assets to heirs according to the will (or California intestate succession law if there is no will).

Making the Distributions

Distribute assets precisely as specified in the court's order. For cash distributions, transfer funds from the estate account to each heir. For distributions of personal property, document the transfer with a signed receipt. After all distributions are made, obtain a signed receipt and release from each heir acknowledging receipt of their full distribution.

Filing for Discharge

After all distributions are made, file a petition for discharge with the court. The court issues an Order of Final Discharge, formally releasing you from your duties and obligations as executor. This order is the official end of the probate administration.

Retain all estate records — every document, every correspondence, every tax return, every bank statement — for at least seven years after the estate closes. Challenges to estate administration can arise long after the fact, and your records are your protection.

Common Executor Mistakes — and How to Avoid Them

Frequently Asked Questions

William B. Plevy, California Real Estate Broker · DRE #01956776

William has guided executors through California probate property sales across Southern California and the Bay Area. His dual background as a licensed real estate broker and attorney gives him a distinctive perspective on the intersection of probate law and real estate practice. Wolf Allies connects executors with agents who have the specific experience this work requires — at no cost to the estate.