Can Your Heir Afford to Inherit Your Home?

There’s a significant transfer of wealth about to take place. According to Fiducient Advisors, $84 trillion will move from baby boomers, and of that amount $72 trillion will go directly to heirs. And according to Mass Mutual, about 24 percent of this wealth will be tied to real estate.

Although real estate appears to be a great way to pass on wealth, it presents challenges for some heirs. For example, according to LegalZoom, 42 percent of younger Americans say they wouldn’t feel financially prepared to keep and maintain real estate.

Although attractive on the surface, many Americans aren’t prepared to maintain real estate. Top concerns, according to LegalZoom, include:

• Property taxes (20 percent)
  
• Maintenance costs (20 percent)
  
• Existing debt tied to property (12 percent)
  
• Legal complexities (11 percent)
  

Property taxes may be reassessed at the current market value after an owner’s death. This could potentially trigger a steep tax increase. Even if the heir doesn’t plan on living in the home, utilities must stay on. Cutting them off could result in damage to the property. This could be an unexpected expense. And routine upkeep like lawn care, or major expenses like roof repairs, could be a financial burden.

If your heirs don’t have strong finances, you may want to talk about the possibility of selling the house in the future. This is a good option to consider, especially if it’s a second home.

When it comes down to it, a conversation with your heir before bequeathing your house could prevent issues in the future.

For more information see Anne Johnson, “Can Your Heir Afford to Inherit Your Home?” The Epoch Times, October 13, 2025.