What if I move into the inherited house and then move out later?

Your ongoing eligibility depends on continued occupancy, so a plan that quietly assumes you will move in for a year and then convert the house to a rental is not a plan; it is a deferred tax bill with a false sense of security attached. When you stop living in the house you are also no longer entitled to the homeowners' exemption on it, and terminating that exemption is your responsibility, not the county's. Counties do check. Exemption audits, rental listings, and mailing address changes all surface these situations, and an assessor who discovers the change later can issue escape assessments for the intervening period, so the bill that eventually arrives covers more than the current year. If you know from the beginning that a long-term stay is unrealistic, it is far better to run the numbers on selling, on a sibling buyout, or on keeping the property with a reassessed base and a clear head, than to build a family's finances on an exclusion that is going to evaporate the day you hand over the keys. That calculation is also easier to do before the house is distributed, while the trustee still has choices about what goes to whom.