No you don't have to transfer the deed. Usually the heir, or another relative, will be named administrator (or Executor) for the Estate of...(the deceased) and the property can be sold by the Estate. The heir will then pay inheritance taxes upon sale before the proceeds are distributed to heirs. If the deceased parent lived in Philadelphia, you can go to the Register of Wills office in City Hall and they are very helpful walking heirs through the process to probate the Estate.
Hope that helps. Please feel free to call me with any other questions.
All the best,
REALTOR, Property Manager
Your Real Estate Resource For Life
Cell (267) 254-7994