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Selling a Parent's House in Colorado: Probate, Timeline, Siblings and Taxes

You can list an inherited home 30 to 60 days after the court issues Letters, and close while probate keeps running. Here is the whole sequence, what it costs, how siblings split it, and the tax rule that protects most heirs.

A live person answers. Not a robot, not a phone tree.

The short answer

In Colorado you do not have to wait for probate to close before selling a parent's home. Once the court appoints a personal representative and issues Letters, which takes about three to six weeks after filing, the home can be listed and sold like any other, within 30 to 60 days in most cases. Informal probate for a straightforward estate runs six to twelve months in total; the sale closes in the middle of it, and the proceeds sit in the estate account until distribution. The tax rule most heirs miss: the home's basis steps up to its value on the date of death, so a sale near that value owes little or no capital gains tax.

Letters issued

3 to 6 weeks

after filing in the county court

The personal representative can then sign a listing.

List and sell

30 to 60 days

after Letters

Close while probate continues.

Whole probate

6 to 12 months

informal, uncontested

Executor deadline: 1 year, extendable 6 months.

Capital gains

Stepped up

to date-of-death value

Sell near that value and the gain is close to zero.

Selling a parent's home in Colorado: the sequenceDeathLocate the willWeek 1-2File in county courtWeek 3-6Letters issuedWeek 6-12List, show, contractMonth 3-4Close; funds to estateMonth 6-12Distribute, close probateInformal probate. A contested will or a missing heir adds months.

Step by step

  1. Find the will and the deed. If the home was in a living trust, there is no probate; the successor trustee sells. If it was held in joint tenancy with a surviving spouse, it passes by affidavit. Otherwise it goes through probate.
  2. File in the county where your parent lived. Informal probate is a paper filing; a lawyer is not required but is worth the fee when siblings disagree or the estate is large.
  3. Get Letters of Administration (or Testamentary). The personal representative can now sign a listing agreement, order repairs and accept an offer.
  4. Get a court-ready value. A written valuation on the date of death sets the tax basis and settles the "is this a fair price" question among heirs. Kenna produces one at no cost: Smart Pricing Report.
  5. Decide: clean out and list, or sell as-is. A cleaned, staged home in the Denver metro sells for more and in about 53 days. An as-is sale to an investor closes in two to three weeks at 70% to 85% of value. Most heirs net more with the first.
  6. Close and hold the money in the estate. Distribution follows the will after creditor claims, which run four months from the published notice.

What it costs

ItemTypical
Court filingabout $200
Probate attorney (optional, informal)$2,500 to $6,000
Clean-out and estate sale$1,500 to $6,000, offset by sale proceeds
Repairs to make the home show$0 to $15,000; paint, carpet, yard
Commission and titleset in the listing agreement
Holding costs while it sitstaxes, insurance, utilities, HOA; $800 to $2,500 a month

Siblings: how it gets split and how it goes wrong

The will controls; without one, Colorado intestacy splits the estate among the heirs equally. The fights come from three places: one sibling living in the home rent-free, one sibling wanting to keep it, and disagreement on price. Solutions that work: charge fair rent from the date of death, let the sibling who wants it buy the others out at the written valuation, and set the list price from the same valuation so nobody is guessing. If one heir refuses to sign, the personal representative still has authority to sell.

Taxes on an inherited home

The basis steps up to the fair market value on the date of death. A home bought in 1985 for $90,000 and worth $650,000 at death has a $650,000 basis; sell it for $660,000 and the taxable gain is $10,000, not $570,000. Colorado taxes the gain as ordinary income at the flat rate; there is no state inheritance tax. If a sibling lives in the home for two years first, the primary-residence exclusion applies to their share. Get the date-of-death value in writing; it is the number the return is built on.

Selling to pay for care instead of after a death

If your parent is alive and moving to assisted living, the rules change: no probate, but Medicaid look-back and estate recovery matter. Read selling a home to pay for assisted living in Colorado.

Probate real estate agents by area

Kenna Real Estate Group lists estate and inherited homes across the Front Range. What we do on a probate listing, the timeline, and who signs:

kennarealestate.com · free guide

The Colorado
Inherited-Home Checklist

The documents, the filing steps, the sibling agreement, the clean-out plan and the tax worksheet

The simple answer

Once the court issues Letters, three to six weeks after filing, a parent's home can be listed and sold in Colorado. The basis steps up to the date-of-death value, so a sale near that value owes little or no capital gains tax.

Prepared by
KENNA REAL ESTATE GROUP
Call or text 303-955-4220 · A live person answers.

Kenna Real Estate GroupPage 1 of 9

Sample from page 3: Who can sign the listing

  • Personal representative (executor) signs the listing, the contract and the deed once Letters are issued. Before Letters, nobody can bind the estate.
  • Trustee signs if the home is in a living trust; probate is skipped for that home.
  • Joint owner with right of survivorship records the death certificate and sells as an individual.
  • Beneficiary-deed grantee takes title at death and sells as the owner.
The rest arrives by email
What is inside (8 sections)
  • 1Who can sign, and when
  • 2The document list before Letters
  • 3The timeline, in order
  • 4The sibling agreement
  • 5The clean-out plan (30 days)
  • 6As-is or prepared: the real numbers
  • 7The tax worksheet to hand the CPA
  • 8The checklist, and who to call

Get the Colorado inherited-home checklist

9 pages · PDF · free · emailed the same day · in your inbox within a minute

Name, email, phone, and the PDF is in your inbox within a minute. A live person follows up once. Want to see more first? Open the guide page, or call or text 303-955-4220.

Where to go next

One call handles the whole sale

Call or text 303-955-4220. A live person answers, sends the date-of-death valuation, and coordinates clean-out, repairs, listing and closing with the personal representative.

Call or text 303-955-4220Get the home value

Questions people ask

Can you sell a house in Colorado before probate is finished?

Yes. Once the court issues Letters to the personal representative, about three to six weeks after filing, the home can be listed and sold. The sale closes while probate continues and the proceeds are held in the estate.

How long does probate take in Colorado?

Six to twelve months for an informal, uncontested estate. The personal representative has one year from appointment to finish, extendable by six months.

Do we pay capital gains tax on an inherited house?

Rarely much. The basis steps up to the value on the date of death, so a sale near that value produces little or no gain. Get the date-of-death value in writing.

What if one sibling wants to keep the house?

They buy the others out at the written valuation, or the personal representative sells and splits the proceeds under the will. Charge fair rent to anyone living there from the date of death.

Should we sell an inherited house as-is or fix it up?

Fix the cheap, visible things and list it. As-is investor offers close fast but pay 70% to 85% of value. Most heirs net far more with a cleaned, staged listing.

Do we need a probate attorney in Colorado?

Not for informal probate of a simple estate, but hire one when the will is contested, an heir is missing, or the estate has debts or property in other states.

Get the inherited-home checklist or ask about a probate sale

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