Selling Inherited Property in Connecticut

An inherited Connecticut house in the deceased owner's sole name sells once two things are true. Someone holds authority to sign the deed, and the liens sitting on the property have been released. Authority comes from the will or from a Probate Court order under Conn. Gen. Stat. § 45a-164. The releases come from the Probate Court or from the Commissioner of Revenue Services.

Those two items stall more Connecticut closings than anything else, and neither one shows up in a general probate article. Here is how both work, plus recording at the town clerk, the conveyance tax the seller pays, and the capital gains math after the basis step-up. For the wider court process behind all of it, read the Connecticut probate guide.

Do You Need a Probate Court File to Sell?

Start with the recorded deed rather than the will. How the deceased owner held title decides whether a court file stands between you and a closing.

Two Connecticut quirks sit inside that table. Section 47-14a converts a conveyance running to two grantees "as tenants by the entirety" into a joint tenancy in fee simple with right of survivorship, so a married couple here gets survivorship without the creditor protection that entirety states attach to it. And Connecticut has no transfer-on-death deed for real estate, so no recorded beneficiary designation moves a house the way one moves a brokerage account. The guide on how to avoid probate in Connecticut covers what does work instead.

Who Has Authority to Sign the Deed

Authority starts the day the court appoints someone. Section 45a-321(a) gives the fiduciary possession, care and control of the decedent's real property during settlement, and the rents and income of that property vest in the fiduciary as personal property, unless the will left the house to a named devisee or directs otherwise. The same section lets the court order that possession be surrendered to the heirs or devisees.

Possession is not power to convey. That comes from one of two places.

A power of sale in the will. Where the testator authorized or directed the sale, the executor carries that power. Section 45a-324 keeps it alive when the named executors fail to act or die before the sale, passing it to the acting or surviving executor or to the administrator appointed to finish the estate. Read the will first, because that clause decides whether a Connecticut estate sale moves in weeks or in months.

A Probate Court order. Where the will says nothing about selling, or there is no will, § 45a-164(a) is the route. The fiduciary files a written application describing the property, the court orders whatever notice it wants and holds a hearing, and the court may authorize the sale of the whole or any part of the real property if it finds the sale would serve the best interests of the parties in interest. The court form is PC-400, Petition to Sell or Mortgage Real Property.

Four details in that section change how the filing goes:

• Subsection (b) ties the order to a bond. The court may let the fiduciary execute the conveyance upon giving a probate bond to administer and account for the proceeds, unless a bond under § 45a-139 is already in force or the bond was dispensed with under § 45a-169.
• Subsection (c) covers a sale to the fiduciary. After a hearing the court may authorize a sale to the fiduciary, and any notice has to say the fiduciary is the proposed purchaser.
• Subsection (d) protects absent interests. Where anyone with an interest in the property is unborn, unascertained or under a disability, the court appoints a guardian ad litem for the hearing.
• Subsection (e) is why buyers accept the deed. The order and the sale under it are conclusive on every person then or later existing whose interests were represented.

Section 45a-166 fills in the mechanics. The court directs whether the sale runs public or private. On a private sale the court may set the price and the terms, including any purchase money mortgage. Net proceeds are then divided the same way the real property itself would have been divided, which matters when the heirs do not take in equal shares.

Work through the fiduciary's authority to sell before you sign a listing agreement, and check the district where the sale is approved so you file in the right court. Connecticut abolished county government in 1960, so the application goes to the Probate Court for the district serving the town where the decedent lived, not to a county courthouse.

Extra Consent Rules When the Will Names Who Gets the House

A specific devise changes the arithmetic. Section 45a-428 runs two separate procedures, and picking the wrong one costs a hearing.

Under subsection (b), where the estate is solvent and the will made a specific devise of the real property or forbade its sale or mortgage, the court shall not order a sale without the written consent of the specific devisees or the other parties interested as distributees of that property, or of the guardians ad litem, guardians or conservators of anyone not legally competent to consent. Get those consents in hand before you file.

Under subsection (a), the picture flips when the court finds the estate insolvent, or finds the estate solvent but holding no assets other than real property under a specific devise or shielded from sale by the will. The court then orders personal notice of the pending application to every devisee it can identify and locate, plus whatever other notice it thinks best for devisees it cannot.

Two neighboring sections come up in the same filings. Section 45a-427 lets the court order a sale where a pecuniary legacy is charged on the real property, or where devised property is to be sold and the will named nobody able or willing to sell it. Section 45a-325 covers the case where the decedent had already signed a contract to sell, letting the court authorize the fiduciary to convey title to the buyer entitled to it.

Sale money lands in the estate and answers for the estate's bills, so read the Connecticut rules on handling estate debts before you hand anyone a check.

One practical blocker rarely gets named. Section 45a-321(b) lets the decedent's family stay in the dwelling house the decedent occupied at death, along with connected land and buildings the court considers necessary for their convenience and comfort, until the property is sold, distributed or otherwise disposed of. There is no month limit written into it. Sort occupancy out with the family early, in writing.

The Two Liens That Stall a Connecticut Closing

Connecticut puts two separate statutory liens on estate real property, released by two different offices. A buyer's attorney asks for both.

The estate tax lien. Section 12-398(d) makes the tax a lien in favor of the state on the real property transferred, running from the due date until it is paid, with interest and costs. The due date is six months after the death under § 12-392(a). That lien is not valid against a lienor, mortgagee, judgment creditor or bona fide purchaser until notice of it is recorded in the town clerk's office where conveyances of the property are recorded, and title insurers still want it cleared on paper.

Section 12-398(e)(1) names the cure and the issuing office. Anyone is entitled to a certificate of release of lien once the Probate Court or the Commissioner of Revenue Services finds that payment is adequately assured or that no tax is due. The Probate Court issues the certificate, unless a return has to be filed with the Commissioner under § 12-392(b)(3), in which case the Commissioner issues it. Under § 12-392(b)(3)(J), for a death on or after January 1, 2023, an estate whose Connecticut taxable estate runs above the federal exclusion amount files with the Commissioner and copies the Probate Court, and an estate at or below that figure files with the Probate Court alone. Subsection (e)(2) then has the certificate recorded with the town clerk of the town where the property sits, which is conclusive proof of the release.

Old deaths get a break. Section 45a-113c(b) deems the chapter 217 estate tax lien released ten years from the date of death, except for estates that filed a return or were assessed a tax under § 12-392 inside that ten years.

The probate fee lien. This one surprises families who already cleared the tax. Section 45a-107b(b) makes the fees imposed under § 45a-107(b) and (c) a lien in favor of the state on any Connecticut real property included in the fee basis of the estate, from the due date until paid, and again the lien is not valid against a bona fide purchaser or a good-faith encumbrancer until notice is recorded with the town clerk. Subsection (c) has the Probate Court issue the release within ten days after the fee and interest are paid in full, or earlier where the court finds payment adequately assured. The court form is PC-205B, Petition for Certificate Releasing Liens.

Start both releases the day you list. Read the Connecticut estate tax lien guide to see how the return that clears it is figured, and gather what you need to clear the lien before closing.

Recording Happens at the Town Clerk, Never a County Office

Connecticut has no county recorder and no register of deeds. Land records live with the town clerk in each of the 169 towns, and § 47-10(a) says no conveyance holds land against anyone except the grantor and the grantor's heirs unless it is recorded on the records of the town where the land lies.

A probate district can serve several towns, so match the paperwork to the town, not the district. Three filings hit the land records after a death:

1. The death certificate filing, within two months. Section 45a-322(a) has the fiduciary lodge a certificate with the town clerk of each town where the decedent owned real property, within two months after qualifying, stating the fact and date of the death, where the decedent last dwelt, and whether there was a will. Miss it and subsection (c) costs the fiduciary $25 payable to the town.
2. The certificate that moves title, within one month. Section 45a-450(a) requires a certificate from the judge or clerk, recorded in the land records of every town where the property sits, within one month after the property is devised, distributed, set out or divided, or within one month after the court accepts the final administration account where the property descends. It names each recipient with a mailing address and describes exactly what each one takes. The court form is PC-250, Certificate of Devise, Descent, or Distribution, and subsection (c) fines a fiduciary who skips it up to $25.
3. The lien releases, recorded with the same town clerk under § 12-398(e)(2) and § 45a-107b(c).

Recording fees are statutory and identical in every town under § 7-34a.

A one-page land record runs $60 and a three-page record runs $70. Neither surcharge applies to a document recorded by a state or municipal employee in the course of official duties.

The Conveyance Tax the Seller Pays

Connecticut taxes the deed itself, and the seller writes that check. Section 12-495 makes the tax payable by the person conveying the property, paid to the town clerk of the town where the land sits when the deed is recorded. Section 12-497 blocks recording until a return prescribed by the Commissioner of Revenue Services has been filed with that clerk and the reported tax paid.

Section 12-494 sets the rate in two pieces once the consideration reaches $2,000. The state takes three-quarters of one per cent, and the town keeps one-quarter of one per cent. On a residential estate, including the dwelling and any auxiliary housing or structures, where the consideration reaches $800,000 or more, the state portion climbs: three-quarters of one per cent on the first $800,000, one and one-quarter per cent on the portion above $800,000 up to $2,500,000, and two and one-quarter per cent above $2,500,000. Property in use for anything other than residential purposes, except unimproved land, carries a flat one and one-quarter per cent state portion.

Confirm the figure with the town clerk before you budget. Section 12-494(c) lets a targeted investment community, or a town holding property designated as a manufacturing plant, add up to another quarter of one per cent.

Some transfers escape the tax entirely. Section 12-498(a) exempts a deed where the consideration is under $2,000, which covers the certificate of distribution that moves the house from the estate to the heirs. Deeds of partition and deeds between spouses are exempt as well. The later sale to an outside buyer is the taxable event.

Capital Gains After the Step-Up

The rule that saves inheriting families the most money is federal. Under 26 U.S. Code § 1014, property acquired from a decedent takes a basis equal to its fair market value on the date of death. Decades of appreciation during the owner's life drop out of the calculation. Walk through the step-up in basis for the full rule.

Take a colonial in the town of Fairfield bought in 1988:

Without the step-up, the taxable gain would have landed near $370,000. A few points to keep straight about your basis when you sell:

• Inherited property counts as long term no matter how briefly you held it.
• Federal long-term rates run 0, 15 or 20 per cent depending on your income.
• Connecticut sets no separate capital gains rate. The gain rides in Connecticut adjusted gross income and is taxed on the § 12-700 schedule, which for tax years starting on or after January 1, 2024 runs from 2 per cent to 6.99 per cent. Where the estate itself sells and keeps the proceeds, § 12-700(a)(10)(E) taxes a resident estate at a flat 6.99 per cent.
• An out-of-state heir still owes Connecticut tax on the sale. Section 12-711(b)(1)(A) treats income from the ownership or disposition of an interest in Connecticut real property as income from Connecticut sources for a nonresident.
• The home sale exclusion of $250,000 single or $500,000 married needs two of the five years before the sale as your main home, so an heir who never lived there rarely qualifies.

Order a date-of-death appraisal and keep the report. The inventory filed with the Probate Court may already carry that value, and a written appraisal is what supports the number years later.

The House Nobody Probated for Years

Connecticut puts a ten-year fuse on two things, and both favor a family that waited.

Section 45a-327 bars the Probate Court from ordering a sale of the decedent's real property once the heirs or devisees have conveyed or mortgaged it to a purchaser or mortgagee in good faith and for value, except within ten years after the death. A sale of the equity of redemption in mortgaged property may still be ordered subject to that mortgage.

Section 45a-107b(d) gives a title holder a way out of a stale probate fee lien. Where the lien arises from the decedent's retained life use or survivorship interest, the decedent died more than ten years before the petition, no estate was opened in a Connecticut Probate Court, no Connecticut estate or succession tax return was filed, no estate tax was assessed, and no tax could be assessed on the known property and taxable gifts, the holder may petition the Probate Court for release. The petition carries affidavits showing the petitioner did not take title directly from the decedent, that the affiant lacks the information to file a complete return, and that a diligent search for the heirs and beneficiaries turned up nobody willing to file. The court calculates the fee, invoices it, and issues the release within ten days of payment.

Together with the ten-year deemed release in § 45a-113c(b), those sections are why an old Connecticut title problem is often cheaper to fix than it looks. Ask the title company what it wants before you spend money at the courthouse. Where nobody left a will, Connecticut intestate succession shows who the successors are.

When More Than One Heir Owns the House

Once the certificate of distribution records, every co-owner has to sign the deed. Agreement is the whole game. Here are the four paths, cheapest first.

• Everyone wants to sell. List it, split the net by each share, and put the split in writing before the sign goes up.
• One heir wants to keep it. That heir buys out the others at appraised value, often with a refinance.
• The estate is still open. Section 45a-326 lets the fiduciary and the owners of the major portion of the other interest petition the Probate Court to partition an undivided interest the will did not devise to a named person. Where the court believes a sale would serve the owners better, or the property cannot be beneficially divided, it may order the sale on whatever notice it thinks proper. Without the signatures of everyone in interest, the court holds a full hearing after public notice and orders partition only where the estate and the parties both come out ahead.
• The estate is closed and nobody will move. Section 52-495 lets a court of equitable jurisdiction order partition of real property held in joint tenancy, tenancy in common, coparcenary or tenancy in tail on the complaint of any person interested. Section 52-500 lets the same court order a sale instead where a sale would serve the owners better than a division.

Partition is slow and it spends estate money on lawyers, so treat it as the last option. Share the appraisal with everyone early, use one agent nobody is related to, and write down how proceeds and carrying costs get divided before the first showing.

One more item for married couples. Where the decedent left a will, § 45a-436 lets the surviving spouse elect a life estate of one-third in value of the property passing under that will, by filing written notice with the Probate Court within 150 days after the decree admitting the will is mailed. A pending election changes who has to join the deed, so check Connecticut surviving spouse rights before you set a closing date.

Frequently Asked Questions

Do I need to go to Probate Court to sell an inherited house in Connecticut?

It depends on how the deceased owner held title. A house in the owner's sole name has to run through the Probate Court for the district where the owner lived before anyone can convey it. A house held in survivorship form under § 47-14a, or held in a funded revocable trust, passes outside probate, and the surviving owner or the successor trustee signs the deed.

Who signs the deed when a Connecticut estate sells a house?

The fiduciary, once authority exists. Section 45a-321(a) gives the fiduciary possession, care and control of the decedent's real property during settlement. Section 45a-164 lets the Probate Court authorize a sale on written application, after notice and a hearing, when the court finds the sale would serve the best interests of the parties in interest. A will that authorizes the sale supplies that power without a court order.

What is the Connecticut estate tax lien on inherited property?

Section 12-398(d) makes the estate tax a lien in favor of the state on the real property transferred, running from the due date until the tax is paid. The tax is due six months after the death. Section 12-398(e) has the Probate Court issue the certificate of release of lien, unless a return must go to the Commissioner of Revenue Services under § 12-392(b)(3), and the certificate is recorded with the town clerk where the land sits.

Who pays the Connecticut real estate conveyance tax on an estate sale?

The seller. Section 12-495 makes the tax payable by the person conveying the property, paid to the town clerk when the deed is recorded. Section 12-494 sets the rate at three-quarters of one per cent to the state plus one-quarter of one per cent to the town on a residential sale under $800,000, with higher state tiers above that. A transfer for less than $2,000 in consideration is exempt under § 12-498(a)(10).

Will I owe capital gains tax on an inherited Connecticut house?

Usually far less than families expect. Under 26 U.S. Code § 1014 your basis becomes the fair market value on the date of death, so only the gain above that value is taxable. Connecticut has no separate capital gains rate. The gain rides in Connecticut adjusted gross income and is taxed on the § 12-700 schedule, which runs from 2 per cent to 6.99 per cent for tax years starting on or after January 1, 2024.

Related Guides

• Connecticut Step-Up in Basis
• Connecticut Estate Tax
• Connecticut Executor Duties
• How to Avoid Probate in Connecticut
• Connecticut Probate Timeline
• Connecticut Creditor Claims
• Connecticut Intestate Succession
• Connecticut Probate Courts by District
• Connecticut Probate Guide

This page is general information about selling inherited real estate in Connecticut. A sale mixes probate procedure, tax and title questions that turn on your own deed and your own family, so confirm anything that affects you with the chief clerk of your probate district, the town clerk where the property sits, or a licensed Connecticut attorney and tax professional.

Sources:

• Title: Sec. 45a-164. Sale or mortgage of real property. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_801b.htm#sec_45a-164
• Title: Sec. 45a-166. Public or private sale of real property. Distribution of proceeds. Validation of sale. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_801b.htm#sec_45a-166
• Title: Sec. 45a-107b. Lien on real property for fees imposed in the settlement of decedent's estate. Release of lien by Probate Court. Petition for release of lien. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_801b.htm#sec_45a-107b
• Title: Sec. 45a-113c. Liens upon real estate that are deemed released. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_801b.htm#sec_45a-113c
• Title: Sec. 45a-321. Custody of real property. Products and income of real property. Family may occupy homestead. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_802b.htm#sec_45a-321
• Title: Sec. 45a-322. Death of owner of real property or oyster grounds to be recorded. Penalty. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_802b.htm#sec_45a-322
• Title: Sec. 45a-324. Power to sell real property as authorized by testator. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_802b.htm#sec_45a-324
• Title: Sec. 45a-325. Execution of contract of decedent for sale of real property. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_802b.htm#sec_45a-325
• Title: Sec. 45a-326. Partition or sale of undivided interest in decedent's estate. Notice. Hearing. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_802b.htm#sec_45a-326
• Title: Sec. 45a-327. Sale of decedent's real property subject to mortgage. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_802b.htm#sec_45a-327
• Title: Sec. 45a-427. Sale of real property to pay legacies. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_802b.htm#sec_45a-427
• Title: Sec. 45a-428. Sale or mortgage of real property specifically devised. Procedures for solvent and insolvent estates. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_802b.htm#sec_45a-428
• Title: Sec. 45a-436. Succession upon death of spouse. Statutory share. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_802b.htm#sec_45a-436
• Title: Sec. 45a-450. Descent or distribution of real property to be recorded. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_802b.htm#sec_45a-450
• Title: Sec. 12-392. Payment of tax. Penalties for late filing. Extension of time. Interest on overpayment. Method of filing. Notice to court of probate. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_217.htm#sec_12-392
• Title: Sec. 12-398. Amended return. Additional assessment. Disclosure of return information by court of probate. Tax lien. Certificate of release of lien. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_217.htm#sec_12-398
• Title: Sec. 12-494. Imposition of tax on conveyances of real property for consideration. One part payable to state and the other to municipality in which paid. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_223.htm#sec_12-494
• Title: Sec. 12-495. Payment of tax. Endorsement. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_223.htm#sec_12-495
• Title: Sec. 12-497. Payment of tax and filing of return condition precedent to recording. Prohibition re refusal to record deed. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_223.htm#sec_12-497
• Title: Sec. 12-498. Exempt transactions. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_223.htm#sec_12-498
• Title: Sec. 12-700. Imposition of tax on income. Rates. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_229.htm#sec_12-700
• Title: Sec. 12-711. Determination of income, gain, loss and deduction derived from or connected with sources within this state. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_229.htm#sec_12-711
• Title: Sec. 7-34a. Fees. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_092.htm#sec_7-34a
• Title: Sec. 47-10. Conveyance to be recorded. Recorded conveyance not invalid or unenforceable if original documentation converted into digital or electronic form, lost or destroyed. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_821.htm#sec_47-10
• Title: Sec. 47-14a. Joint tenancy in fee simple with survivorship. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_821.htm#sec_47-14a
• Title: Sec. 52-495. Partition of joint and common estates. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_919.htm#sec_52-495
• Title: Sec. 52-500. Sale or equitable distribution of real or personal property owned by two or more persons. Life estate. Publisher: Connecticut General Assembly. Publication Date: Revised to January 1, 2025. URL: https://www.cga.ct.gov/current/pub/chap_919.htm#sec_52-500
• Title: Trusts and Estates Forms, including PC-400 Petition to Sell or Mortgage Real Property, PC-205B Petition for Certificate Releasing Liens, and PC-250 Certificate of Devise, Descent, or Distribution. Publisher: Connecticut Probate Courts. Publication Date: Not listed. URL: https://www.ctprobate.gov/trusts-estates/trusts-estates-forms
• Title: Estate and Gift Tax Information. Publisher: Connecticut Department of Revenue Services. Publication Date: Not listed. URL: https://portal.ct.gov/drs/individuals/individual-income-tax-portal/estate-and-gift-taxes/tax-information
• Title: 26 U.S. Code § 1014, Basis of property acquired from a decedent. Publisher: Office of the Law Revision Counsel, United States House of Representatives. Publication Date: Not listed. URL: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1014&num=0&edition=prelim

It is not legal advice.