How heirs can keep a family house instead of selling it — New Hampshire

Short answer: Yes — heirs can often keep real property without selling it, but doing so requires agreement among the co-owners or formal steps (buyout, trust, refinancing, or a court-ordered partition if the co-owners cannot agree). The safest path depends on title, mortgages, taxes, and the heirs’ ability to cooperate.

Detailed answer — practical paths under New Hampshire law

When someone dies and leaves real estate to more than one person, the heirs typically become co-owners (usually tenants in common) of the property. That ownership gives each heir an undivided share. New Hampshire law allows several ways to keep the house in the family rather than selling it. Below are the common options, how they work, and the risks to watch for.

1) Voluntary agreement among heirs (best, simplest option)

If all heirs agree, they can decide to keep the house and set the terms in writing. Typical provisions include who will live there, who pays mortgage, taxes, insurance, utilities, and repairs, and how long the arrangement lasts. Many families use a written family settlement agreement or co-ownership agreement that:

allocates expenses and rental income;
sets a buyout formula if one heir wants to buy others out later;
creates a plan if an owner dies, becomes incapacitated, or wants to sell.

Put the agreement in writing, record any deed changes if ownership shares change, and consider having an attorney prepare or review the document.

2) One heir buys out the others

A common solution is for one or more heirs to buy the other heirs’ shares. Steps commonly include:

get a professional appraisal;
agree on a buyout price (often based on market value and each heir’s share);
arrange financing or assume the mortgage (with lender approval);
execute a deed transferring the selling heir’s interest.

Refinancing to remove other heirs from the mortgage or to cash out their shares is frequently used. Lenders will require credit approval and title issues must be cleared first.

3) Put the house into a trust or create life estate arrangements

Transferring the property into a family trust or creating a life estate can let heirs continue to live in the property while preserving long-term control. These options can manage succession and avoid future conflicts, but they require careful drafting to handle taxes, creditors, and future sale or buyout rules.

4) Renting the house and sharing income/expenses

If no one wants to live in the house, heirs can rent it out and share rents and expenses per a written agreement. This can preserve the asset while generating income to pay mortgage and taxes until a long-term plan is made.

5) Partition actions — what happens if heirs disagree

If heirs cannot agree, any co-owner can file a partition action in court to force a division or sale of the property. A partition action typically leads to one of two outcomes:

Partition in kind — the court divides the property physically among owners. This is possible only when the land can be fairly and practically divided.
Partition by sale — the court orders the property sold and the proceeds divided among the owners according to their shares.

Partition litigation can be expensive and time-consuming. Courts prefer parties to reach voluntary solutions. If you want to avoid court, try mediation or a negotiated buyout before litigation.

New Hampshire statute and court procedures govern partition and probate matters. For the text of the New Hampshire Revised Statutes and to research the statutes that apply, see the New Hampshire RSA site: https://www.gencourt.state.nh.us/rsa/html/. For practical probate procedures and how estates transfer property in New Hampshire, see the New Hampshire Probate Court information pages: https://www.courts.state.nh.us/probate/.

Key procedural points specific to New Hampshire heirs

Title transfer at death often happens through probate or small estate procedures. Make sure the estate’s appointed personal representative (executor/administrator) handles deeds and creditor notices correctly.
If a mortgage exists, lenders typically must approve assumption or refinancing when ownership changes.
If heirs want to keep the house but cannot pay ongoing costs, the property risks foreclosure. Make payment plans early.
Spouses may have different ownership rights (for example, tenancy by entirety rules for married couples). Confirm how title was held.

How to proceed step-by-step

Identify the title: get a copy of the deed and any mortgage or lien records.
Confirm who legally owns the property and whether probate is required to transfer title.
Get a certified appraisal or broker’s market analysis to set a fair value.
Talk openly with co-owners about options: agreement, buyout, refinancing, trust, renting.
Consult a probate/real estate attorney for document preparation and to review lender and tax consequences.
If negotiations fail, consider mediation before filing a partition action; litigation should be a last resort.

Common pitfalls to avoid

Relying on verbal agreements — always get major agreements in writing and record deeds when ownership changes.
Ignoring mortgage requirements — lenders may accelerate a loan if ownership changes without approval.
Assuming taxes won’t matter — capital gains, estate tax (if any), and property tax consequences can affect net outcomes; consult a tax professional.
Waiting too long — neglecting maintenance, taxes, or insurance can reduce the property’s value and increase conflict.

Helpful Hints

Get a neutral professional appraisal to avoid disputes over value.
Use mediation early — neutral mediators often produce fair solutions at far lower cost than court.
If you plan a buyout, agree on a clear, written formula for price and payment terms (lump sum or financed).
Check the mortgage lender’s requirements before completing any transfer or change in ownership.
Keep clear records of all payments for taxes, insurance, mortgage, utilities, and repairs; these matter for accounting and buyouts.
Talk with a probate or real estate attorney in New Hampshire to prepare deeds, trusts, or settlement agreements that fit your family’s plan.

Where to get help in New Hampshire

Start with the New Hampshire Probate Court information pages (https://www.courts.state.nh.us/probate/) and review the New Hampshire RSA collection for statutes related to probate and property (https://www.gencourt.state.nh.us/rsa/html/). Then consult a licensed New Hampshire attorney experienced in probate and real estate to review your specific situation and prepare documents.

Disclaimer: This article is educational only and does not provide legal advice. It does not create an attorney-client relationship. For legal advice about your specific situation, consult a licensed New Hampshire attorney.