"America is approaching the Great Wealth Transfer, where over $100 trillion is expected to move from baby boomers to their children in the next 25 years. Despite the optimism surrounding inheritances, various factors such as rising costs, debts, and legal issues can significantly impact what is eventually passed down. It is crucial for individuals to understand the complexities of inheriting a family home and how to protect this valuable asset."
"Rising costs, especially in healthcare and long-term care, can deplete inheritances, leading retirees to spend what they had hoped to leave behind for their children. Debt, including mortgages and home equity loans, poses a threat to real estate inheritances, potentially eroding the value of the property and leaving little for heirs. Legal hurdles like probate and property taxes can further diminish inheritances, with properties having to go through time-consuming processes"
"Young Americans expect significant inheritances, averaging $335,000, with 8% anticipating sums of $1 million or more, but actual inheritances can be smaller, delayed, or contested."
More than $100 trillion is projected to transfer from baby boomers to their children over the next 25 years during the Great Wealth Transfer. Young Americans expect sizable inheritances—averaging about $335,000 and with 8% anticipating $1 million or more—but those expectations often exceed reality. Healthcare and long-term care costs can exhaust retirees' savings and reduce what is left to inherit. Outstanding debts such as mortgages and home equity loans can erode real estate value. Probate, property taxes, and contested estates can further diminish or delay transfers. Understanding estate, tax, and property issues is essential to protect a family home and heirs' interests.
Read at SFGATE
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