Inherited Land in Massachusetts? Here's Your Complete Guide for 2025

Inheriting land in Massachusetts can feel like receiving a mixed blessing. On one hand, you've received an asset. On the other, you may face property taxes, maintenance costs, probate complications, and tough decisions about what to do with property you may not want.

If you've recently inherited land in Massachusetts, this guide covers everything you need to know.

The Massachusetts Probate Process for Inherited Land

When you inherit real estate in Massachusetts, the property typically must go through probate—the legal process of transferring ownership from the deceased to heirs.

How Probate Works in MA

If there's a will: - The will is filed with the Probate and Family Court in the county where the deceased lived - The court appoints an executor (often named in the will) - The executor handles debts, taxes, and distribution of assets - Real estate is transferred to heirs according to the will

If there's no will (intestate): - Massachusetts intestacy laws determine who inherits - The court appoints an administrator to handle the estate - Surviving spouse typically inherits first, then children, then other relatives

Probate Timeline in Massachusetts

Simple estates: 6-9 months
Complex estates: 1-2+ years
Contested estates: Can take years

You cannot sell inherited property until probate is complete and the deed is transferred to your name.

Tax Implications of Inherited Land in Massachusetts

Inheriting land comes with several tax considerations:

1. Massachusetts Estate Tax

Massachusetts has an estate tax on estates valued over $2 million (2025 threshold). The estate pays this tax before property is distributed to heirs.

If the total estate is under $2 million: No MA estate tax
If over $2 million: Estate tax applies to the entire estate, not just the amount over $2 million

Important: The estate (not you as the heir) pays this tax before you inherit.

2. Federal Estate Tax

The federal estate tax only applies to estates over $13.61 million (2025). Most Massachusetts estates will not owe federal estate tax.

3. Capital Gains Tax When You Sell

This is the tax most heirs need to understand.

Stepped-Up Basis: When you inherit property, you receive a "stepped-up basis" equal to the fair market value on the date of death, not what the deceased originally paid.

Example: - Your parent bought land in 1980 for $20,000 - They passed away in 2024 when the land was worth $150,000 - Your basis is $150,000 (not $20,000) - If you sell for $150,000, you owe no capital gains tax - If you sell for $160,000, you pay capital gains on $10,000 only

Capital gains tax rates in Massachusetts: - Federal: 0%, 15%, or 20% depending on your income - Massachusetts: 5% on long-term gains

Pro tip: Sell soon after inheriting to minimize capital gains. The longer you hold it, the more the value may increase, resulting in higher capital gains tax.

4. Property Taxes

You are responsible for property taxes from the date you inherit. In Massachusetts:

Property taxes average $1.21 per $100 of assessed value (varies by town)
Taxes are due quarterly in most towns
Unpaid taxes result in liens and potential foreclosure

Example: - Land assessed at $100,000 - Approximate annual property tax: $1,210 (varies by location)

If you don't want the land, these taxes keep accumulating.

Your Options for Inherited Land in Massachusetts

Option 1: Keep the Land

Pros: - Potential long-term appreciation - Family legacy - Future development or use

Cons: - Annual property taxes ($500-$5,000+ depending on value) - Maintenance and liability - Potential family disputes if multiple heirs - Costs accumulate while you decide

Best for: Heirs who want to build, develop, or hold for family use.

Option 2: Sell Through a Real Estate Agent

Process: 1. Complete probate and transfer deed to your name 2. Hire a real estate agent (typically 6% commission) 3. List on MLS and land-specific sites 4. Wait for a buyer (6-12+ months for vacant land) 5. Negotiate and close (30-60 days after offer)

Pros: - Potentially get retail market price - Agent handles marketing

Cons: - Long timeline (often 12-18 months total) - 6% commission ($3,000 on a $50,000 sale) - Property taxes and costs while waiting - No guarantee of sale

Best for: Heirs with time to wait and desirable property in a hot market.

Option 3: Sell to a Cash Buyer

Process: 1. Complete probate and transfer deed 2. Contact cash land buyer 3. Receive offer in 24-48 hours 4. Accept and close in 7-14 days

Pros: - Fast (1-2 weeks to close) - No commission or fees - Sell as-is (no cleanup or improvements needed) - Certainty (cash deals rarely fall through) - Stop paying property taxes immediately

Cons: - Offer typically 50-70% of retail value - Must have clear title (probate complete)

Best for: Heirs who want quick cash without hassle, especially for unwanted or problem properties.

Option 4: Divide Among Multiple Heirs

If multiple siblings or family members inherited the land:

Partition Options: - Partition in kind: Physically divide the land (requires survey and legal work) - Partition by sale: Court-ordered sale with proceeds divided among heirs - Buyout: One heir buys out the others

Challenges: - Disagreements about value or what to do - Legal costs for partition - Emotional and family dynamics

Best solution: Agree to sell and split proceeds, especially if no one wants to keep it.

Special Situations

Inherited Land with a Mortgage

If the deceased had a mortgage: - The debt doesn't disappear - The estate must pay off the mortgage or heirs take over payments - You can sell the property and pay off the loan from proceeds - If the debt exceeds the property value, you may need to negotiate with the lender

Inherited Land in a Trust

If the land was held in a trust: - It may bypass probate entirely - Faster transfer to beneficiaries - Trustee handles distribution according to trust terms

Life Estate Properties

If the deceased had a "life estate" (lived on the property but you owned the remainder): - You automatically gain full ownership upon their death - Usually avoids probate - Faster and simpler transfer

Tax Liens or Back Taxes

If the deceased owed property taxes: - The town has a lien on the property - You must pay back taxes to clear title - You cannot sell with a tax lien (it must be paid at closing)

Steps to Sell Inherited Land in Massachusetts

Step 1: Complete Probate

You cannot sell until probate is complete and the deed is in your name. Work with the estate attorney to expedite this process.

Step 2: Gather Property Information

Collect: - Deed and title documents - Most recent property tax bill - Survey (if available) - Any information about access, utilities, zoning

Step 3: Determine Value

Check recent comparable land sales in the area (Zillow, Realtor.com)
Get a professional appraisal if needed
Consider getting multiple offers

Step 4: Clear Title Issues

Pay off any liens or back taxes
Resolve boundary disputes
Address any title defects

Step 5: Choose Your Selling Method

Fast sale: Contact cash land buyers for quick offers
Traditional sale: Hire an agent and list on the market

Step 6: Close and Pay Taxes

Sign closing documents
Pay capital gains tax when you file your tax return
Keep records of the sale for tax purposes

How to Avoid Common Mistakes

Mistake 1: Delaying the Decision

Every month you wait: - Property taxes accumulate - Maintenance issues may arise - Market conditions may change - Family disputes may escalate

Solution: Make a decision within 3-6 months of inheriting.

Mistake 2: Not Consulting a Tax Professional

Capital gains, estate taxes, and Massachusetts tax laws are complex.

Solution: Consult a CPA or tax attorney before selling to understand tax implications.

Mistake 3: Overpricing the Land

Heirs often overestimate value based on emotional attachment or outdated information.

Solution: Research recent comparable sales and get multiple valuations.

Mistake 4: Not Checking for Liens

Unpaid taxes, mortgages, or judgments can delay or prevent a sale.

Solution: Order a title search before listing or accepting an offer.

Selling Inherited Land Quickly: Your Best Options

If you want to sell fast and avoid months of waiting:

Contact Cash Land Buyers

Cash buyers specialize in purchasing inherited land and can: - Make offers in 24-48 hours - Close in 7-14 days - Buy as-is (no repairs or cleanup) - Handle all paperwork and closing costs

Trade-off: You'll receive 50-70% of retail value, but you eliminate: - 6% agent commission - Months of property taxes while waiting - Uncertainty of finding a buyer - Hassle of marketing and showings

Get Multiple Offers

Contact 3-5 cash buyers to compare: - Offer price - Closing timeline - Contingencies - Reputation and reviews

Tax Strategies for Inherited Land

Strategy 1: Sell Quickly

Sell within the first year to take advantage of the stepped-up basis and minimize capital gains.

Strategy 2: 1031 Exchange (For Investors)

If you're an investor, you can defer capital gains by reinvesting in another property through a 1031 exchange.

Strategy 3: Donate for a Tax Deduction

Donate the land to a conservation organization or charity for a tax deduction (consult a tax advisor).

FAQs About Inherited Land in Massachusetts

Do I pay inheritance tax in Massachusetts?

No. Massachusetts does not have an inheritance tax. However, estates over $2 million may owe estate tax (paid by the estate before distribution).

How long do I have to sell inherited land?

There's no deadline, but property taxes accrue immediately. Selling within 1-2 years is common to avoid ongoing costs.

Can I sell inherited land before probate is complete?

No. You must wait until probate is complete and the deed is transferred to your name.

What if I inherit land with my siblings?

You have three options: divide it, one buys out the others, or sell and split proceeds. Selling and splitting is usually the simplest solution.

What if the inherited land has no road access?

Landlocked property is harder to sell through traditional methods, but cash buyers may still be interested. Expect a lower value.

Do I need a lawyer to sell inherited land?

Not required in Massachusetts, but recommended—especially if there are title issues, multiple heirs, or probate complications.

Ready to Sell Your Inherited Land?

If you've inherited land in Massachusetts and want to sell quickly:

Complete probate and get the deed in your name
Gather property information (parcel number, acreage, county)
Get a free cash offer (usually within 24 hours)
Close in 7-14 days and receive payment

No commission. No fees. No hassle.

Get your free cash offer today →