Many people assume they’ll one day inherit a family home — but when it comes to real estate, inheritance isn’t always guaranteed. Before you count on property as part of your financial future, here’s what you should know.
The Great Wealth Transfer Is Underway
Over the next few decades, more than $100 trillion is expected to pass from Baby Boomers to their heirs in what’s being called The Great Wealth Transfer.
But while that sounds like a huge opportunity for the next generation, real estate can complicate things. Homes don’t always transfer smoothly — and sometimes, they don’t transfer at all.
The Expectation vs. Reality of Inheritance
Expectation: “I’ll inherit a fully paid-off family home.”
Reality: That home might come with strings attached — like debt, medical bills, probate issues, or property taxes that eat into its value or make it difficult to keep.
Even if the home is paid off, the estate may need to settle outstanding costs or taxes before it’s officially yours. And in some cases, family disagreements can delay or even block the transfer altogether.
When You Inherit a Home, You Also Inherit Its Responsibilities
Receiving a home can feel like a blessing — until you realize everything that comes with it.
Here’s what many new heirs don’t anticipate:
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Mortgage or home equity loans: If there’s still debt attached, it must be paid off or refinanced.
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Property taxes and insurance: These costs don’t go away — and in Utah, rising property values can mean higher tax bills each year.
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Maintenance and repairs: Older homes often need updates, and deferred maintenance can get expensive fast.
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Legal fees: If the home goes through probate, attorney and filing costs can add up quickly.
Utah’s Market Adds Another Challenge
Utah’s booming housing market is great news for property owners — but it can also create problems for heirs.
As property values rise, so do property taxes, making it harder for some families to keep inherited homes.
In certain cases, those increasing costs alone can lead heirs to sell a property they originally hoped to hold onto.
How to Protect a Family Home (and Prevent Stress Later)
The best way to ensure your family property stays in the family? Plan early and communicate often.
Here are a few proactive steps:
Talk about estate planning now. Don’t wait for a crisis to have the conversation.
Create wills or trusts. These help avoid probate and clarify ownership intentions.
Plan for long-term care costs. Medical expenses are one of the biggest reasons homes are sold before being passed down.
Keep property titles clean and updated. This prevents legal complications down the road.
The Bottom Line
An inheritance should be viewed as a bonus, not a financial plan.
Even if you hope to receive property one day, the most reliable way to build wealth is to start investing in real estate yourself.
If you want to learn how to buy, invest, or protect your own real estate future here in Utah, reach out today. Let’s make a plan for your version of generational wealth — one you can build now, not just inherit later.
