There was a time when inheriting your parents’ home was considered a gift. Nowadays, it’s just as likely to come with a sigh and a spreadsheet.
As baby boomers begin passing on their real estate to millennial heirs, it turns out many adult children are just as reluctant to take on the family home as they are to accept Mom and Dad’s wedding china or furniture that hasn’t been changed out since … who knows? (Unless we’re talking about that elusive mid-century modern credenza – then it’s Game of Thrones meets HGTV.)
Here in our mountain communities, the conversation around inherited property is changing fast. What used to be seen as a leg up – a home, paid off or nearly there, tucked under tall pines – is now viewed by many as a financial and logistical puzzle. A lot of these homes are dated, in need of serious upgrades, or simply don’t match the lifestyle of the next generation. And let’s be honest: Not everyone wants to spend weekends repairing decks or arguing with contractors over vintage plumbing.
Then there’s the sticker shock. Thanks to California’s reassessment rules, property taxes can spike when a home changes hands – even through inheritance – unless exemptions are properly filed. Add in capital gains concerns if the property is eventually sold, and it’s easy to see why some beneficiaries start Googling “sell as-is fast” before they’ve even found the keys.
But it’s not all doom and duct tape. Some savvy millennials are turning these inherited properties into rentals, vacation homes or long-term investments. With the right planning, these homes can become part of a larger wealth-building strategy. Others decide to sell and use the proceeds toward a more fitting purchase, especially if the inherited home isn’t in their preferred location – or if it’s full of dusty memories of someone else’s life.
What’s clear is this: The days of automatically keeping the family house “just because it’s the family house” are fading. Sentiment matters, but so does square footage, monthly carrying costs and whether or not you can stand the wallpaper. If you’re a boomer preparing to pass along property, have a real conversation now. If you’re the potential heir, don’t wait until you’re cleaning out the garage to figure out what the plan should be.
The handoff of real estate between generations is happening all around us. It’s layered with emotion, legacy and financial consequence. But with clear communication, a bit of planning and maybe a fresh coat of paint, it doesn’t have to feel like a burden. And if you still end up with a curio cabinet full of porcelain clowns, there’s always eBay.
Theresa Grant is a real estate broker and columnist covering Lake Arrowhead, Crestline, Running Springs and the surrounding mountain communities. Reach her at (909) 442-1345, visit www.HomesInLakeArrowhead.com and follow her on social media, @theresagrantrealtor. Theresa is a Broker Associate with REAL Broker Technologies. DRE#01202881.
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