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Adult children might expect toinherit parents property.
Depending on the circumstances, this can be a financial boon or a massive headache for heirs.
What if parentsdontwant to follow this plan?
Do Parents Have To Pass Down Their Real Estate?
Legally, parents are not obligated to pass down their real estate to their children.
They may want to gift it to a charitable organization or to another beneficiary.
However, family dynamics and cultural expectations might complicate things especially if children think they should get the property.
Parents should consider, for example, that they might need expensive long-term care as they age.
Many homes are not equipped for elders to age in place.
Is It Wise to Pass Down Real Estate?
Its essential to work with an estate attorney and finance professionals who specialize in estate planning.
This will avoid legal disputes and provide clarity for everyone.
Halleron has seen a lack of planning lead to unintended consequences.
But, he said, the parents did not adjust their beneficiary designation percentages on their other assets.
This can easily be avoided through advance planning.
Open communication and family meetings can help parents gauge beneficiaries interests and expectations.
Resist the urge to do the default or most culturally acceptable thing.
Keep lines of communication open.
Passing on property might not be the wisest choice, and there are plenty of other options.
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