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Business Taxes Law Guide—Revision 2024
Sales and Use Tax Annotations
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395.0000 Occasional Sales—Sale of a Business—Business Reorganization—Regulation 1595
Annotation 395.0070
(a) In General
395.0070 Sale of Interest in an Estate. Probate Code section 300 (since re-enacted as sections 7000 and 7001) provides that when a person dies, title to his/her property, both real and personal, passes to the person to whom it is devised or bequeathed subject to the possession of the executor.
The executor may, with approval of the probate court, sell the property. However, the chain of title passes from the decedent and not from the executor. Thus, when a sale of an "entire beneficial right, title and interest" in an estate is made, the seller is the person to whom title to the property was vested (the one who inherited property) on the death of decedent. The subsequent transfer of interest in the estate is the same as a sale by a taxpayer of the individual inherited items of property. As such, the sale of that portion of the estate which is personal property is subject to all of the provisions of the Sales and Use Tax Laws. 3/13/78.