As baby boomers pass down an estimated $84 trillion in wealth—nearly $19 trillion in real estate—many Americans are inheriting homes.1 2 But while receiving a house may seem like a blessing, the financial and emotional weight that comes with it can be overwhelming without proper estate planning. “Should you leave your home to loved ones?” is a question that requires careful consideration to avoid burdening them with unexpected responsibilities. Leaving your home to loved ones is indeed a difficult decision to make.
A House Isn’t Free—Even If You Inherit It
An inherited home may come with a mortgage, overdue repairs, property taxes, insurance, utilities, and maintenance costs. According to Bankrate, the average annual cost of homeownership (not including the mortgage) is now over $21,000.3 If the home sits vacant during probate or trust administration, someone still needs to foot the bill—often for months or even years. Asking, “Should you leave your home to loved ones?” encompasses understanding these potential challenges.
Who Pays During the Transition?
- During probate, the executor uses estate funds to cover bills. If there’s not enough cash, assets may need to be sold.
- For homes in a trust, the trustee handles expenses, but liquidity is key.
- Without a clear plan, a home can sit idle, leading to deteriorating value and family conflict.
- Once transferred, the beneficiary becomes fully responsible for all costs, including back taxes or deferred maintenance.
Tools That Can Help
Proactive planning can ease the burden on your loved ones. Consider:
- Joint ownership with rights of survivorship, which offers clarity but carries gift tax and creditor risks.
- A trust with a right of occupancy, allowing someone to live in the home for a set time while the trust covers costs.
- A Transfer-on-Death (TOD) deed, also known as a beneficiary deed or ladybird deed in different states which bypasses probate in some states. Such deeds are not available in all states.
Preparing Beneficiaries for Ownership
Estate planning isn’t just legal paperwork—it’s a chance to prevent conflict and financial strain. Some steps you can take:
- Clearly state who inherits the home.
- Outline expectations if multiple people inherit together.
- Educate younger heirs on the costs of ownership.
- Declutter or downsize the home while you can.
Leave a Legacy, Not a Headache
Inheriting a home can be a life-changing opportunity—or a financial and emotional drain. The difference often lies in the planning. A thoughtful estate plan, supported by clear communication, helps your loved ones honor your legacy without being overwhelmed by it. Thus, pondering the question, “Should You Leave Your Home to Loved Ones?” can lead to more informed decision-making.
Need Guidance on Including a Home in Your Estate Plan?
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- James Royal, Ph.D., An $84 trillion wealth shift is underway, and you may soon inherit a piece of it. Here’s what to expect, Bankrate (June 25, 2025), https://www.bankrate.com/investing/the-great-wealth-transfer. ↩︎
- Anthony Smith, Boomers Are Sitting on Nearly $19 Trillion in Real Estate—Here’s Where They Hold the Most Housing Wealth, Realtor.com (July 21, 2025), https://www.realtor.com/news/trends/baby-boomers-home-equity-wealth. ↩︎
- James Royal, Ph.D., An $84 trillion wealth shift is underway, and you may soon inherit a piece of it. Here’s what to expect, Bankrate (June 25, 2025), https://www.bankrate.com/investing/the-great-wealth-transfer. ↩︎
