Apart from its monetary worth, a family home also has sentimental value because of the good times and memories it holds. For this reason, it is frequently the most coveted inheritance. However, there are times when the drawbacks of leaving a house to family members outweigh the benefits.
Bequething a family home comes with many practical and emotional benefits. Financially speaking, it might save your loved one from needing to buy a house, save on capital gains tax or generate additional income as a real estate investment. If the house has been in the same family for many years, it may also possess emotional worth since it represents the continuation of a cherished family legacy.
While passing on the family home to loved ones makes sense, they may not share your sentiment or cannot afford to keep it. Here are a few reasons why complications arise from passing on real estate:
Expensive upkeep and unexpected costs
It’s possible that the heir won’t be able to cover the unexpected costs of owning a home, such as upkeep and repairs. Additionally, if you haven’t completed the mortgage payments, the new owner may have to bear the costs. This can be difficult if they haven’t planned financially in advance.
Negative emotional ties
Not every home is filled with happy memories. The new owner may not want to deal with a property if it reminds them of an unpleasant past.
Disputes may arise if you leave the house to more than one family member. It may prevent certain family members from utilizing the house as they would like to if others do not agree.
The new owner may have emotional ties to the home and feel responsible for its care, limiting them from pursuing opportunities that require relocating.
Although a home is a great thing to have, leaving it to your family isn’t always ideal if the successor is not financially prepared to keep it. Consider hearing out the family’s thoughts on the house before deciding on a beneficiary. These things take a significant amount of consideration, but taking your time may help you make the right decision.