The title to the property must be transmitted from the deceased's name
into the name of the executor(s), which requires probate of the will.
The value of the real property plus the value of any other property
(cash, et cetera) owned in the deceased's name is the basis for the
probate filing fee of approximately 1.4% of the value of the estate.
There is no property transfer tax payable on the transmission.
The title to the property can remain in the executor's name for as long
as the executor is alive, subject to the executor's duty to wind up the
estate and do what is best for the beneficiaries. If the estate holds
the property, and continues to rent it out, for example, then the estate
must file ongoing income tax returns. The executor (the estate) can
sell the property ant time after the title has been transmitted to the
If your father resided in the property up to the time of his death, and
his children are beneficiaries of his estate, then the title may be
further transferred to the child(ren) also without property transfer
tax. If your father did not so reside, then property transfer tax is
payable at the rate of 1% on the first $200,000.00 of fair market value,
and 2% on the balance.
If the title is transferred to a company, then property transfer tax is
payable regardless of residency of the deceased.
Don't forget that if the property was not your father's principal
residence, then federal tax is payable on the capital gain in the year
of your father's death, regardless of what the estate does with the
property. If there is not enough cash in the estate, or in the
pocket(s) of the beneficiary(ies), to pay the tax bill, then the federal
government will expect the property to be sold to pay your father's
capital gain tax.