Protect the house first: keep it insured, locked and its bills paid, and find out who has authority to act for it. Then compare moving in, renting, holding and selling, because each path has its own Texas rules and costs.
Say Denise's mother has died, and the Texas house that belonged to her now stands empty. Her mother owned it on her own, and there is no surviving spouse. Her mother's reading glasses are still on the arm of the couch, the thermostat is set the way she liked it, and a letter from the mortgage company is in the stack Denise brought in from the mailbox. She isn't sure what to do with a parent's house after death, or even what has to happen first.
This guide is general information, not legal or tax advice; a probate attorney or CPA can apply it to your situation.
If you inherited a house in Texas and keep asking yourself what now, you are in the same spot as Denise. The good news is that the first steps are small. The house does not need a final answer right away. It needs to stay safe, insured and paid for while the family works out the rest.
The first weeks: lock up and check the insurance
Picture Denise standing in the front hall with her mother's spare keys in a coffee mug. Before the hard choices, there is a short list of things that protect the house. A good first-30-days checklist for an inherited house starts with the basics:
- Lock it up. Check every door and window. Gather the spare keys and write down who has one. A neighbor who will call if something looks wrong is worth a lot.
- Find the papers. Look for the will, the deed, the latest mortgage statement, the property tax bill and the homeowners insurance policy. Keep them in one folder.
- Call the insurance company. The Texas Department of Insurance home insurance guide lists a house that is vacant for 60 days or more as a reason a company may refuse to renew, and says most companies stop coverage after that long, though they usually keep liability coverage. Tell the company the owner has died and the house is empty, and ask what it will take to keep coverage in place.
- Decide on utilities and mail. Shutting everything off can cause its own trouble. Our guide to keeping utilities on in a vacant house goes service by service, and the vacant house checklist for Texas owners covers visits, notice and paperwork.
None of this commits Denise to keeping or selling. It just buys the family time to decide well.
Who can act for the house in Texas right now
Denise may feel the house is hers to look after. Feeling responsible and having legal authority are not the same thing. Under Texas law, a person's estate passes to the will beneficiaries, or to the heirs if there is no will, immediately at death, subject to the person's debts (Estates Code Sec. 101.001 and Sec. 101.051). The records do not catch up on their own; our guide on how to get the house in your name walks through the routes.
If a court issues letters testamentary or of administration, the executor or administrator then has the right to possession of the estate and holds it in trust (Estates Code Sec. 101.003). So before Denise signs a lease, hires a contractor for major work or agrees to a sale, she should ask a probate attorney who has authority to sign. For how that authority works when a family sells, see selling inherited property in Texas. If family members disagree about the house, our guide on what to do when a sibling won't sell covers the options.
Keep the mortgage and property taxes current while you decide
That letter from the mortgage company is worth answering soon. A mortgage does not end when the borrower dies, and the bills keep arriving whether anyone opens them or not.
The mortgage. Under federal servicing rules, a relative who receives an ownership interest because of a borrower's death is a successor in interest (12 CFR 1024.31). Once the servicer confirms that person's identity and ownership, the rules treat them as a borrower (12 CFR 1024.30(d)). Our guide to stopping foreclosure on an inherited house shows how to ask for confirmation and what to send.
Property taxes. A tax lien attaches to Texas property every January 1 (Tax Code Sec. 32.01), and a bill not paid before February 1 of the following year generally becomes delinquent (Tax Code Sec. 31.02). Penalties, exemptions and what happens to a parent's over-65 exemption are covered in taxes on inherited property in Texas.
Add insurance, utilities, lawn care and small repairs, and an empty house has a monthly cost. Our holding cost calculator can help you put a number on it.
Can you live in your parent's house after they die?
Maybe Denise wonders about moving in herself. It would end the empty-house worry, keep the place cared for and keep it in the family.
For property taxes, Texas calls a house like this heir property: a home acquired by will, transfer on death deed or intestacy (no will), where at least one owner claims it as a homestead, even before the county records show the heirs (Tax Code Sec. 1.04). An heir who lives there can apply for the homestead exemption without a recorded deed (Tax Code Sec. 11.43), and getting it does not change who holds title (Sec. 11.49). Our guide to the heir property homestead exemption lists the papers the application asks for.
A few practical points if Denise moves in:
- Tell the insurance company someone now lives there, and ask whether the policy needs to change.
- Keep the mortgage current and ask the servicer to confirm her as a successor in interest.
- If other heirs share ownership, put in writing who pays the mortgage, taxes, insurance and repairs.
Should you rent out your parent's house?
Or say Denise thinks about renting it out, so the house can help pay its own bills while the family takes its time.
Authority comes first. If a court has issued letters, the executor or administrator has the right to possession of the estate (Estates Code Sec. 101.003). Ask the probate attorney who should sign a lease and where the rent should go.
The tax side. In most cases, all the rent you receive counts as income (IRS Publication 527). Your basis in an inherited house is generally its fair market value on the date of death (IRS Publication 551), and only the building can be depreciated, because land is not. If an heir lives there first and rents it out later, Publication 551 sets the depreciation basis at the lower of the fair market value or the adjusted basis on the day the use changes. And if a sibling or other family member lives there, those days count as personal use unless it is their main home and they pay a fair rental price, which can limit what you deduct (Publication 527). A CPA can sort out which rules fit your family.
The landlord side. Renting makes you a Texas landlord. With some exceptions, Property Code Chapter 92 requires window latches and specific door locks without the tenant having to ask (Property Code Sec. 92.153) and at least one smoke alarm in each bedroom (Property Code Sec. 92.255). If being a landlord from a distance sounds like a lot, compare hiring a property manager or selling your Texas rental, and read about the risks while a rental sits empty between tenants.
Move in, rent, hold or sell: the options side by side
At some point Denise has to set the choices next to each other. None of them is wrong. Each fits a different family, budget and amount of time.
| Path | It can fit when | What keeps costing | Read next |
|---|---|---|---|
| Move in | An heir wants to live there and can carry the house | Mortgage, taxes, insurance, repairs | Heir homestead and taxes |
| Rent it out | The rent covers the bills and someone can handle tenants | Repairs, empty months, landlord duties, income tax on rent | Manager or sell |
| Hold it empty | The family needs time and can pay to wait | Every bill, plus vacancy insurance limits and upkeep | Vacant house checklist |
| Sell | No one wants to live there or be a landlord, or the bills are hard to carry | Selling has its own costs; then the carrying costs end | Sell an inherited house as-is |
Whether any deadline applies to your family is covered in our guide to the time limit to sell inherited property in Texas. For Denise, the question of what to do with a parent's house after death does not have to be settled today. What she needs right now is a safe, insured house, current bills and a clear sense of what each path costs. Then she can choose.
If selling turns out to be the right fit
Cash Home Advisors buys houses in Dallas–Fort Worth, Houston, San Antonio and Austin. You sell as-is, no repairs, and there are no agent commissions. We pay all closing costs.
A cash offer is usually less than the house could bring on the open market after repairs, so listing can net more if your family has the time and money for it. Asking is free, no obligation, and a real person calls you back. Request a cash offer, or read how our process works first.
Frequently asked questions
Who keeps paying the mortgage after a parent dies?
The loan does not go away when the borrower dies. Texas Estates Code Sec. 101.001 passes a parent's estate to the heirs or will beneficiaries, and Sec. 101.051 makes that subject to the parent's debts, so if the family wants to keep the house, the estate or an heir has to keep the payments current. A relative who receives an ownership interest because of a borrower's death is a successor in interest under 12 CFR 1024.31, and once the servicer confirms that person's identity and ownership, 12 CFR 1024.30(d) treats them as a borrower for the federal servicing rules.
Can I change the locks on my parent's house after they die?
Securing an empty house is a sensible first step. Texas Estates Code Sec. 101.001 vests the house in the will beneficiaries, or in the heirs if there is no will, at the moment of death. Once a court issues letters testamentary or of administration, the executor or administrator has the right to possession of the estate (Sec. 101.003), so make sure that person has a key. If anyone is living in the house, talk to a probate attorney before you change the locks.
Can I rent out my parent's house before the estate is settled?
Find out who has authority first. The house vests in the heirs or will beneficiaries at death, subject to the parent's debts (Texas Estates Code Secs. 101.001 and 101.051). If a court has issued letters, the executor or administrator has the right to possession and holds the estate in trust (Sec. 101.003). Ask a probate attorney who should sign the lease and where the rent should go before a tenant moves in.
Sources
- Texas Estates Code, Chapter 101 (Secs. 101.001, 101.003 and 101.051)
- Texas Department of Insurance, Homeowners insurance guide (vacancy and nonrenewal)
- CFPB, Regulation X, 12 CFR 1024.31 (successor in interest)
- CFPB, Regulation X, 12 CFR 1024.30(d) (confirmed successors treated as borrowers)
- Texas Tax Code, Chapter 1 (Sec. 1.04, heir property)
- Texas Tax Code, Chapter 11 (Secs. 11.43 and 11.49, heir property homestead)
- Texas Tax Code, Chapter 31 (Sec. 31.02, delinquency date)
- Texas Tax Code, Chapter 32 (Sec. 32.01, tax lien)
- Texas Property Code, Chapter 92 (Secs. 92.153 and 92.255)
- IRS Publication 551 (12/2025), Basis of Assets
- IRS Publication 527 (2025), Residential Rental Property
General information, not legal or tax advice. Talk to a Texas attorney or CPA about your situation.