The greatest transfer of wealth in history is already underway.
Baby Boomers — the largest retirement generation yet — are expected to pass down as much as $105 trillion by 2048. According to a recent LegalZoom survey, about 62% of that inheritance will come in the form of real estate.
But here’s the catch: owning a home isn’t cheap. Rising property values, climbing taxes, and ballooning maintenance costs could turn a family blessing into a financial burden for younger generations.
Property Costs Are Soaring
The Tax Foundation reports that property values have risen nearly 27% faster than inflation since 2020. Higher valuations mean higher tax bills — and many heirs worry they won’t be able to keep up.
In fact, 42% of young Americans say they don’t feel financially prepared to maintain an inherited home. Their top concerns include:
- Property taxes: Nearly half expect to inherit property, but 1 in 5 fear they won’t be able to afford the taxes.
- Maintenance costs: From insurance to repairs, about 20% of young heirs say upkeep could overwhelm them.
- Debt and legal traps: Roughly 23% fear mortgages, liens, or complicated paperwork could make inheritance more of a headache than a blessing.
Meanwhile, older generations still plan to leave behind homes. About 62% of Americans over 45 expect to pass down property — yet only 18.6% of younger Americans feel “very prepared” to manage one.
House-Rich, Cash-Poor?
An inherited home sounds like a dream. But for many, it could create a house-rich, cash-poor dilemma.
Different generations are struggling with their own financial baggage:
- Gen X: According to LendingTree, they carry the highest median non-mortgage debt, from credit cards to student loans.
- Millennials: More than half have more debt than savings, reports Bankrate.
- Gen Z: A Deloitte study found 56% live paycheck to paycheck.
Instead of keeping a family home, many heirs may end up selling it just to pay off existing debts.
Start the Conversation Now
Talking about inheritance may feel awkward, but experts say families should start planning early. Some tips:
- Ask your heirs about their finances. What do they want their future to look like? What challenges do they face?
- Be transparent. Share details about your own debts, taxes, and assets so heirs aren’t blindsided.
- Discuss options. If liquidity is a problem, talk about which assets could be sold and what investments might suit your heirs’ needs.
And remember: the most valuable inheritance may not be the house itself — but the financial wisdom passed down along with it.
Bottom line: With the biggest wealth shift in history already underway, heirs who aren’t financially ready could find themselves forced to sell off what should have been a family legacy. For families, the time to talk — and plan — is now.
Author Profile
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The writer is a real estate journalist specializing in all types of New York City properties, including luxury residences, commercial spaces, and homes.
He also writes humorous articles about real estate, investors, and realtors.
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