Hidden Costs You Can Face When Inheriting a Property in Georgia

Inheriting a house may seem like a blessing, a free property, a potential investment, or even a new place to call home. But the reality is often far more complicated. For many Georgia residents, an inherited home comes with hidden financial and legal responsibilities that can become overwhelming fast.

Surprises like unexpected taxes, expensive repairs, ongoing holding costs, and delays from probate can change a big inheritance into a heavy load to carry.

In this guide, we’ll break down the most common, and often overlooked, costs associated with inheriting property in Georgia, so you can make informed decisions before it’s too late.

1. Do You Have to Pay Taxes on Inherited Property in Georgia?

Many heirs are surprised to learn that Georgia does not have a state inheritance tax, which means you typically won’t owe the state anything simply for inheriting a house. That said, you’re not totally off the hook. While Georgia may not tax the inheritance itself, there are still important federal tax implications you need to understand, especially if you plan to sell the home.

Federal Capital Gains Tax

If you receive a property as an inheritance and choose to sell it, you could face capital gains tax, which is a federal tax on the earnings from the sale. The silver lining is that the IRS provides a stepped up basis. This means the property’s worth gets adjusted to its fair market value as of the date when the previous owner passed away.

Example:

Let’s say your parent bought the home for $100,000 years ago, but the home was worth $280,000 when you inherited it. If you sell the home for $280,000 shortly after, you won’t owe capital gains tax — because there’s no “profit” relative to the stepped-up basis.

However, if you hold onto the home for a while and it increases in value, any profit beyond that stepped-up value could be taxed. You can learn more directly from the IRS’s official guide to capital gains taxes.

Important Notes:

• If multiple heirs are involved, you may each be taxed on your share of any gains
• If you turn the home into a rental, additional tax implications may apply
• If you sell the home years after inheritance, the stepped-up value may no longer match the market

While taxes may not seem urgent, failing to plan can result in a surprising tax bill down the road, especially if the property value increases or if you’re unfamiliar with how capital gains work

2. Common Costs That Come With Inheriting a House

Inheriting a property doesn’t just mean gaining an asset, it also means taking on new financial responsibilities, many of which can sneak up on you if you’re not prepared. Even if the home is paid off, you may still face a variety of ongoing costs, unexpected bills, and deferred issues that need attention right away.

Let’s break down the most common expenses you might encounter.

Property Taxes

Whether the home is occupied or vacant, annual property taxes still apply. If the previous owner was elderly or qualified for exemptions, those benefits likely will not transfer to you. You will need to:

• Reassess the property value
• Reconfirm the current tax rate with your local county assessor
• Prepare to pay past-due taxes if they weren’t settled by the estate

Insurance

You cannot keep the old homeowner’s insurance policy active under their name. After inheriting a home, you’re required to:

• Get a new insurance policy in your name
• Switch to vacant property coverage if the home will sit empty
• Pay significantly more for landlord insurance if you plan to rent it out

These changes often come with higher premiums than a standard homeowner’s policy.

Maintenance & Repairs

Many inherited homes are older or haven’t been well maintained. Even small issues can add up fast, especially if you intend to sell or rent the home. Common repair costs include:

• Roof leaks or structural issues
• Outdated electrical or plumbing
• HVAC or water heater replacements
• Cosmetic fixes like paint, carpet, or fixtures
• Yard cleanup and landscaping

You may also need to pay for an inspection or appraisal if you plan to sell on the open market.

Outstanding Debts or Liens

It’s not uncommon for inherited homes to come with surprise debts, including:

• Unpaid mortgages or home equity loans
• Tax liens from the IRS or state
• Past-due property taxes
• HOA or community fees

You’ll need to run a title search or consult with a probate attorney to uncover any hidden obligations. These debts may need to be settled before the home can be sold or transferred.

Bottom Line

Even if the home appears to be a financial win, the real cost of keeping it can be significant. Many heirs find themselves spending thousands just to maintain or prepare the home for sale, which is why some choose to sell quickly and avoid the burden altogether.

3. Who Is Responsible for the Mortgage, Utilities, and Upkeep?

One of the most misunderstood aspects of inheriting a property is who is responsible for managing it right away, especially if there are ongoing bills or debts attached to the home.

The Mortgage Doesn’t Disappear

If the inherited home still has a mortgage, that loan doesn’t go away when the owner passes. You, the heir, become responsible for the debt , either by:

• Taking over the mortgage (if allowed), or
• Paying it off with other estate assets, or
• Keeping the loan current while the estate goes through probate

In Georgia, the lender may not speak to you directly until probate is opened or completed, which can delay communication. However, the mortgage company will still accept payments and may proceed toward foreclosure if the loan falls too far behind.

The Mortgage Doesn’t Disappear

Many heirs don’t know who the lender is or don’t have access to the statements. Meanwhile, interest, late fees, and penalties stack up, and in some cases, the bank moves forward with foreclosure before the family can react.

Utilities and Property Services

Even if no one is living in the home, you may still need to:

• Keep electricity, water, and gas on to prevent damage
• Maintain the yard and exterior to comply with HOA or city codes
• Pay trash, sewer, or pest control costs
• Monitor the property if it’s sitting vacant (risk of vandalism or squatters)

These recurring expenses add up quickly, especially during long probate cases or legal delays between heirs.

Repairs and Routine Upkeep

Beyond debt and bills, you’re also responsible for:

• Ongoing maintenance (plumbing, leaks, HVAC)
• Cleaning and clearing out the home
• Securing the property if it’s vacant (locks, windows, alarms)
• Addressing code violations or deferred maintenance

And unless you’re living in the home or plan to move in, you’re spending money on a property you may not want to keep.

Bottom Line

Once the home is legally yours, you’re on the hook for everything, mortgage, bills, upkeep, and risk. If you’re not prepared to manage all of it, selling may be the cleanest and most affordable way out.

4. Hidden Legal or Probate Costs Most People Overlook

Inheriting a home often comes with an emotional weight, but what catches most people off guard are the legal and administrative costs tied to probate, especially if there was no will or if multiple heirs are involved.

While some probate cases are simple, many require time, paperwork, court filings, and in some cases, lawyers, all of which come with a price tag.

Probate Filing Fees and Court Costs

Even in a straightforward situation, the probate process in Georgia includes:

• Filing fees with the county probate court
• Publication costs if public notice is required
• Possible costs for court appointed representatives or appraisers

These can range from a few hundred to several thousand dollars, depending on the complexity of the estate and the county where it’s filed. For a deeper breakdown, check out this overview of the probate process from the Georgia Probate Court Council..

Attorney Fees

If there’s no will, or if heirs disagree, a probate attorney is often necessary to navigate the legal process. Attorney fees are usually paid from the estate, meaning the inherited home’s value takes a hit before you even receive it.

Even if you’re just trying to change the deed, transfer title, or clear liens, a lawyer may be needed, and that could cost $1,000–$5,000+ depending on how involved the case is..

Appraisals, Title Searches, and Deed Transfers

These often overlooked costs include:

• Hiring a licensed appraiser to determine fair market value
• Running a title search to ensure the property has no hidden liens or legal disputes
• Paying for a new deed and recording fees to legally transfer the property into your name

All of these costs are required before the home can be legally sold, and some must be paid out of pocket.

Probate can get expensive and complicated fast, especially in Georgia.
That’s why we created the Ultimate Guide to Probate and Inherited Property to help you understand what to expect, avoid common mistakes, and make confident decisions when managing an inherited home.

If multiple heirs are involved, things can get tricky..

Dealing with Multiple Heirs? Expect Delays and Expenses

If you inherited the property along with siblings or other family members, things can get tricky, fast. Disagreements about whether to keep or sell the property can lead to:

• Legal disputes or forced sale proceedings
• Longer timelines (probate can drag for 6 to 12 months or more)
• Higher legal costs due to mediation or additional filings

Bottom Line

Probate is rarely free, and rarely fast. Even “simple” cases can become expensive, especially when there are multiple heirs, legal delays, or unresolved title issues.

Many heirs choose to sell quickly to avoid dragging out the process and dealing with months of unexpected fees and stress.

5. Can Selling the Home Help You Avoid These Costs?

Yes, and for many heirs in Georgia, selling the inherited home is the smartest and simplest option to avoid the growing list of expenses, responsibilities, and legal headaches.

While holding on to the property might seem like a good long term investment, the short term costs, financially and emotionally, can be overwhelming. Selling the home, especially to a cash buyer, can offer a clean way out.

Why Selling Can Make Financial Sense

By selling the home, especially before probate drags out or costly repairs are needed, you can:

• Avoid ongoing property taxes, insurance, and utilities
• Stop worrying about mortgage payments or foreclosure
• Skip repairs, clean outs, and showings
• Dodge potential disputes between heirs
• Turn the property into cash that can be distributed or reinvested

For many heirs, the home is more of a liability than an asset. Selling allows you to offload the burden and walk away with peace of mind.

Selling to a Cash Buyer Simplifies Everything

If you want to avoid listing the home, waiting months for a buyer, or paying agents and closing fees, a direct sale to a professional home buyer can save you time, stress, and money.

When you sell to We Are Home Buyers, you can:

• Sell as-is, no repairs, cleaning, or showings required
• Close in as little as 7-14 days
• Avoid all the typical fees and commissions
• Get help navigating any probate or title issues
• Reduce your tax risk by selling quickly after inheritance (preserving the stepped-up basis)

Thinking about selling your inherited property?
👉 Read our full guide to selling an inherited house in Georgia

Bottom Line

If the hidden costs, legal headaches, or family disputes are starting to build, selling may not just be the easier option, it may be the smartest one.

Conclusion

Inheriting a house in Georgia can feel like a gift, but once you account for the hidden costs, legal steps, and emotional stress, you may quickly realize it’s also a major responsibility.

From surprise tax implications to unpaid mortgages, probate delays, and ongoing maintenance, the costs can add up fast, especially if you’re not prepared.

The good news? You don’t have to carry that burden.

At We Are Home Buyers, we help people just like you:

• Sell inherited properties fast
• Avoid foreclosure, liens, and costly repairs
• Navigate probate complications
• Get a fair, no-obligation cash offer, and close on your timeline

Ready to Stop the Stress? Let’s Talk.

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