When a homeowner dies, their estate will need to be settled. If they did not have a trust, the process will likely involve probate court. Once the executor or personal representative disburses the assets, you will receive the title to the home. At that point, you may need to take over or replace the mortgage if you plan to keep the home. Otherwise, you may want to prepare the home to be sold. You will receive a step-up in basis, which will likely reduce your capital gains tax if you sell the home.