Passing Down Real Estate

As we continue to think about generational wealth transfer, Boomer realities, Next Gen realities, and the process, one of the things we can all do is understand how a home goes from Mom and Dad to the Kids.

Exciting? Maybe. Necessary? Definitely. This is one of the nuts and bolts items to help protect what is likely the largest asset in the estate. The USA Today recently had a helpful article (link below) which highlights a few key areas that are especially important when there are multiple beneficiaries receiving the property, including:

• Maintenance – Who will take care of repairs, painting and upgrades?

• Usage – Who gets to use the home and when?

• Structure – Who is the decision maker or how are final decisions made if there’s a disagreement?

• Expenses - How does everything – maintenance, property taxes, insurance, electric and gas bills – get paid for?

• Exit strategy – What if a child isn’t interested in the property, can’t afford the costs, lives too far away to use it and doesn’t want to pay for it or wants out after a few years?

An interesting insight is that “[a]bout 62% of older adults plan to leave their children real estate, but 42% of younger Americans said they wouldn’t feel financially prepared to keep and maintain it if they received it.” (https://www.usatoday.com/story/money/personalfinance/2025/11/04/best-way-leave-property-children/87014720007_)

Some of the ways to mitigate this includes a proper conversation between Mom, Dad, and the Kids, an LLC structure, and a Trust (note: Irrevocable and Revocable have nuances, so please be mindful).

At the end of the day, this comes back to our recurring theme of Harder Now, Easier Later or Easier Now, Harder Later. You choose, but the bill / work / etc always comes due.

Forward is in the business of helping families keep more money in the family. Let’s help ourselves move our families forward…