What happens to the family home when someone dies? A guide for beneficiaries
The family home is often the most significant asset in a deceased estate and frequently the most complicated to deal with. If you are a beneficiary waiting for a parent's property to be sold as part of estate administration, you are likely managing a combination of grief, financial pressure, and uncertainty about what happens next.
This guide explains the process clearly, so you know what to expect and what your options are.
The home becomes part of the estate
When someone dies, all their assets, including the family home, become part of their deceased estate. The property doesn't automatically transfer to beneficiaries. It sits within the estate until the executor has obtained probate and completed all the legal and financial steps required before distribution.
Until that process is complete, beneficiaries have no legal right to the property itself. They cannot sell it, rent it out for personal benefit, or access any proceeds. The executor manages it on behalf of the estate.
What does the executor do with the property?
The executor's job is to deal with the property in accordance with the will. In most cases, this means selling it and distributing the proceeds to the beneficiaries. Less commonly, the will may specify that the property is to be transferred directly to a specific beneficiary, in which case a formal title transfer (not a sale) takes place.
If there's no will, the property is dealt with under intestacy rules, which specify how assets are distributed to next of kin.
Does the executor need probate to sell the property?
Yes — in most circumstances. Probate is the formal legal authority granted by a court that gives the executor power to deal with the estate's assets. Without probate, a real estate agent cannot be formally engaged, and settlement of a sale cannot occur.
Probate typically takes 4 to 8 weeks once the application is lodged with the relevant Supreme Court. The executor can prepare the property for sale during this period, but the sale itself cannot complete until probate is granted.
How long does the property process take?
Property sales within deceased estates typically take longer than standard residential sales. From the date of death, the full process — probate, preparation, listing, sale, and distribution, commonly takes 9 to 18 months. Several factors can extend this:
- A slow property market or difficulty finding a buyer
- Delays in obtaining probate due to incomplete documentation
- Disagreement between beneficiaries about whether to sell, when to sell, or at what price
- Condition issues requiring significant repairs before the property can be listed
- Interstate or international beneficiaries requiring coordination across time zones
Can beneficiaries live in the property during administration?
This depends on the will and the agreement of all beneficiaries and the executor. Some executors allow beneficiaries to occupy the property rent-free during administration, particularly if the beneficiary was already living there. Others require a market rent to be paid to the estate.
There is no universal rule. The executor has discretion, and in contested situations the matter may need to be resolved through mediation or the courts.
Who pays the ongoing costs while the estate is being settled?
If the estate lacks the cash to cover these costs, the executor may need to draw on the sale proceeds, which means beneficiaries may receive slightly less than the gross sale price. In some cases, beneficiaries voluntarily contribute to ongoing costs to keep the estate solvent, though they are not legally required to.
What if siblings disagree about selling?
This is one of the most common sources of estate conflict in Australia. If all beneficiaries have an equal share, one beneficiary cannot block the sale indefinitely. The executor has authority to sell under the terms of the will. But disagreement about timing, pricing, or the choice of agent can cause significant delays.
In cases where conflict is severe, beneficiaries can apply to the Supreme Court for directions. This is a last resort and adds both time and cost to the process.
How can beneficiaries access funds before the property sells?
Waiting 12 months or more for a property sale to settle the estate can cause real financial hardship. An inheritance advance lets beneficiaries access up to 50% of their confirmed entitlement now without waiting for the property to sell.
The advance is assessed on the estate assets (including the property value), not on your personal income. You make no monthly repayments. When the estate finalises and the property proceeds are distributed, the executor repays Inherita directly from your share.
Frequently asked questions
Can the family home be sold before probate is granted?
The property can be prepared, valued and even listed before probate, but the sale can't legally settle until probate is granted and the executor has authority to transfer title.
Do I have to pay rent if I live in the inherited property?
It depends on the will and what the executor and other beneficiaries agree to. Some allow rent-free occupation during administration; others require market rent to be paid to the estate. There's no universal rule.
Who pays council rates and insurance while the estate is being settled?
These ongoing costs are paid from estate funds, not by individual beneficiaries personally — though if the estate has limited cash, beneficiaries sometimes contribute voluntarily to keep it solvent.
Can I access money from the estate before the property sells?
Yes. An inheritance advance lets you access up to 50% of your confirmed entitlement based on the estate's assets, including the property, without waiting for the sale to settle.
Waiting on a property sale to settle the estate? Inherita can advance funds against your confirmed inheritance — so you don't have to wait.
See how it works →