The New Math on Inheriting Your Parents’ House
Rising costs are prompting more adult children to sell the homes they inherit from their parents
3 min
One of the first things many people do when they inherit their parents’ home these days is put up a for-sale sign.
Deciding what to do with a family property is often both an emotional and financial decision, but the rising costs of renovations, property taxes and utilities are making it harder for adult children to hold on to the real estate, financial advisers say. Higher home prices and mortgage rates have often also made it impractical for heirs to buy out their siblings, said Dick Stoner, a Realtor in Rockville, Md.
The high home prices of the past few years have made the decision to sell even more attractive. If inheritors can unload a house in a hot location for a high price, the proceeds from the home’s sale can help secure their finances and fund goals such as retirement, advisers say.
“For inheritors, cash is king,” said Paige Wilbur, Wells Fargo’s head of estate services.
Cash over sentimental value
Leaving a home to children remains a common way to transfer wealth, according to financial advisers and estate planners. There is no recent data that tracks home inheritance nationally.
More than three-quarters of parents plan to leave a home to their children when they die, according to a 2023 Charles Schwab survey of more than 700 American investors between the ages of 27 and 95. Some children may be reluctant to sell for sentimental reasons, but finances and simplicity of unloading a property often win out. Nearly 70% of those who expect to inherit a home from their parents plan to sell it, the survey found.
When Heidi Whaley and her sister, Melissa Mills, inherited their parents’ home, they chose to put it on the market. They recently listed the Charleston home for just below $3.5 million. The sisters, both retired, felt some sadness letting go of the home they grew up in and where their parents hosted many waterfront parties.
“My father wanted to build a house that would be strong, one which would be passed from generation to generation,” said Whaley.
Both sisters are empty-nesters with their own nearby homes, and said they couldn’t justify the expense of maintaining a nearly 4,000-square-foot house for the sake of fond memories.
Rising costs are a bigger part of the calculus these days when heirs decide whether or not to keep an inherited house, real-estate agents say. For instance, the higher cost to insure coastal homes in the Southeast is pushing more heirs in the area to sell, said Ruthie Ravenel, a Realtor in Charleston.
Inflation has also made repairs and upkeep on older properties more expensive, leading some to favour newer properties that may be cheaper to maintain and insure, she said.
I’ll keep the vacation home, though
The declining interest in keeping Mom and Dad’s home is part of a broader generational trend among inheritors, estate planners say.
Some tangible assets aren’t considered as valuable as they were in the past, thanks partly to changing tastes, said Wilbur with Wells Fargo’s estate services.
Renovation is expensive and what one generation sees as on-trend, the other may not. For example, the younger generation of beneficiaries mostly don’t want older traditional furniture. Instead, they prefer the modern, farm-style chic look, said Wilbur.
“While Mom and Dad’s home might be nice, the children may not want to live in it and would consider it too costly to renovate to their style,” she said.
Vacation homes and secondary properties, however, are more likely to be kept by heirs, at least for a few years, especially if it is in an appealing location, financial planners say. If multiple family members are inheriting a vacation house, there needs to be a way to split maintenance costs fairly and create a usage schedule that is to everyone’s liking, said Jeff Fishman, a financial adviser in Los Angeles.
Consider the taxes
Taxes remain a key reason many heirs sell relatively soon, financial advisers say.
Aaron Buchbinder, a real-estate agent in Boca Raton, Fla., is working with three brothers who inherited their grandmother’s condominium this year in Boca Raton and none of them live in Florida. They discussed keeping it and renting it out, but none of them wanted to keep it long term and preferred to sell because of the carrying cost of the homeowners association fees and taxes, said Buchbinder.
Heirs who wish to buy out their other siblings will want to use a reasonable method for valuing the home, said John Voltaggio, a managing director at Morgan Stanley Private Wealth Management. The family may decide to use the value reported on the estate tax return if it is recent, or they may want to obtain a few appraisals and use an average, he said.
The family members inheriting the property will also want to make sure they aren’t getting in over their head financially, with mortgage rates hovering around 7%.
“Many financial decisions today are very rate-dependent, so remove emotions or risk doing something you may later regret,” said Fishman, the financial adviser in Los Angeles.
A home’s cost basis—which is the starting point for measuring a future taxable gain—resets to market value, typically its value at the date of death, said Eric Smith, a spokesman for the Internal Revenue Service.
Any increase in value after death is taxed as long-term capital gains, and those rates are lower than the rates on short-term gain. But if a home is sold quickly, there is likely to be little gain if any and little to no tax, said Smith.
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رغم التوترات الإقليمية، يواصل سوق العقارات الفاخرة في الإمارات جذب المشاريع الجديدة، مع تصدر الواجهات البحرية المشهد. وتستعد دبي وأبوظبي ورأس الخيمة لإطلاق مجموعة من المشاريع السكنية الفاخرة، بينها مساكن تحمل علامات فندقية عالمية مثل Ritz-Carlton وJanu.
6 min
Long-term optimism remains strong in the United Arab Emirates, even as the war in neighboring Iran hinders home sales and demand for now.
While there have certainly been residential and commercial real estate projects across the U.A.E. that have been paused or delayed due to the turmoil experienced across the region, by and large, new developments continue to be launched.
That’s the case in the luxury residences sector in particular, where a string of starry, big-name projects are putting homes on the market before the close of the year. One trend is that the islands of Dubai, Abu Dhabi and the U.A.E. at large that are taking their turn in the spotlight, as waterfront living continues to be in demand and come at a premium.
For would-be buyers looking for resort-style homes along the shores, there’s an array of upcoming projects to get excited about. Right at the top of the list are hotel branded residences from the likes of Ritz-Carlton and Janu, the sister brand of powerhouse Aman, among five swanky projects selling this season.
The Ritz-Carlton Residences Al Maryah Island, Abu Dhabi
Luxury hotel branded residences are thriving, and the exciting Ritz-Carlton Residences Al Maryah Island development is a great example of why. Residents can expect hotel-style amenities and services from a locale within Abu Dhabi’s thriving waterfront district, with the creature comforts of home built into it.
This project was unveiled at Abu Dhabi Finance Week 2025 and promises to offer The Ritz-Carlton brand’s signature, timeless style and unwavering attention to detail. All units will feature floor-to-ceiling windows with enviable views, while residents will be able to take advantage of a resort-grade, infinity waterfront pool, immersive spa and wellness facilities, and a waterfront promenade with curated outdoor spaces as well as high-end retail and dining venues.
Sales launch in October.
Number of Units: 172
Price Range: Starting at $1.2 million
Developer/Architect: Killa Design and Tara Bernerd, with SAAS Properties.
Home Sizes: One- to four-bedroom residences ranging from 882 square feet to 4,962 square feet, and a five-bedroom, 13,713-square-foot penthouse.
Amenities: Wellness facilities including premium fitness center, massage room, meditation and recovery rooms, cold plunge and indoor pool. There’s also a rooftop pool, co-working lounge, executive golf lounge, and a games room and children play area.
Janu Al Marjan Island, Ras Al Khaimah
Just 50 minutes from Dubai International Airport, Janu Al Marjan Island aims to both feel a world apart from the city, while also offering supreme ease of access. The property has its own private stretch of beach and marina, ideal for superyacht mooring and serving as the scene of a beach club.
The Janu Residences will be positioned next to the Janu hotel, with residents able to take advantage of its many social and wellness spaces, in addition to resident’s-only amenities and services. Meanwhile, the adjacent Wynn Al Marjan Island, the U.A.E.’s first integrated resort, is in direct proximity as well.
Social life by the sea, with discretion and wellness on tap, not to mention a chance to get in early on burgeoning Ras Al Khaimah.
Sales launch in late October.
Number of Units: 73
Price Range: Starting at $2.3 million
Developer/Architect: Jointly developed by Marjan and Wynn Resorts, with architecture by SCDA Architects.
Home Sizes: One- to five-bedroom residences ranging from 2,117 square feet to 18,955 square feet, as well as five Marina Villas and a residential tower penthouse.
Amenities: An active lifestyle comes to the forefront with the Janu Spa and Wellness center and a padel court. Six dining venues and a signature beach club are key features for residents who want it all, right on-site.
Sei Saadiyat, Saadiyat Cultural District, Abu Dhabi
Located in the Saadiyat Cultural District, Sei Saadiyat combines its historic locale with a unique spin rooted in the Japanese concept of stillness and calm, or “Sei.” That foundational principle is what this community will be based on, with a mission to foster wellness and relaxation in all forms, including fitness and social connection.
A total of 778 homes will be spread across six Jacobs-designed buildings. Aldar is also introducing a first in their residential portfolio in the form of their two-bedroom Kanso Lofts at Sei Saadiyat, featuring double-height, open-plan living in loft style spaces including an elevated bedroom.
Phase one sales launched in September.
Number of Units: 778 total (265 involved in this phase one launch)
Price Range: Starting at $800,000
Developer/Architect: Aldar with architecture by Jacobs and interiors by Kettle Collective.
Home Sizes: Residences range from 753 square feet to 2,238 square feet, in a range of floor plans including one- and two-bedroom apartments, three-bedroom Kanso Residences and two-bedroom Kanso lofts.
Amenities: Amenities tie into the brand’s ethos of stillness and calm: expect a Zen garden with serenity pool and outdoor yoga decks, along with numerous indoor and outdoor fitness areas, and hot-and cold-pool experiences.
Amali Canal Residences
Amali Canal Residences is located on Dubai Canal in Al Wasl. The community is suspended above the canal, and brings the presence of water even closer to home with a number of features including private plunge pools in every residence, and a swim-through, indoor-outdoor pool with a signature waterfall facade that would make the posh resorts of the Swiss Alps blush.
There will be no shortage of on-site entertainment and diversions, whether in the form of a private cinema and resident bowling alley, cigar lounge and library, padel and sports courts, a panoramic fitness center. Then there’s The Retreat, a wellness center incorporating spa, sauna, steam, onsen baths, hydrotherapy, and yoga and pilates studios. When it’s time for a bit of work in between the diversions, residents can use an executive boardroom, private studies and co-working lounges.
Sales launch in October.
Number of Units: 211
Price Range: Two bedrooms starting at $3.9 million; three bedrooms starting at $5.4 million; four bedrooms starting at $7.4 million; penthouse pricing on request.
Developer/Architect: Amali Properties in collaboration with AHS Properties, with architecture by Killa Design and interior design by HBA Residential.
Home Sizes: Two- to four-bedroom apartments ranging from 2,880 square feet to 7,800 square feet, in addition to four- and five-bedroom penthouses ranging up to 21,000 square feet.
Amenities: 55,000 square feet of interconnected amenity spaces including myriad lounges, infinity pools with cabanas, children’s waterpark and child care center, padel court and a rooftop secret garden.
Rixos Residences Al Reem Island, Abu Dhabi
The Rixo Residences on Al Reem Island, Abu Dhabi, are designed to match its island environs with the thriving culture and finance dynamics of the city. Panoramic water and skyline views bring both faces to life, in this East & West Properties project.
Residences showcase expansive terraces offering boundless views from within a community centered around three dedicated amenity zones: the Oasis, the Haven and the Gathering. Together, wellness, fitness, social life and relaxation are all available in a number of formats.
Less than half a mile from the coast, and only 10 minutes from downtown Abu Dhabi, Rixos Residences offers generous layouts and amenity-rich public spaces that deliver equally as well for family-friendly living as well as investors.
Sales launched in August.
Number of Units: 386
Price Range: One-bedrooms starting at $570,000, with larger loft units starting at $1.8 million.
Developer/Architect: East & West Property Development under the Ennismore portfolio, with architect Aedas and interiors by HBA Residential.
Home Sizes: One- to two-bedroom apartments as well as three- and four-bedroom lofts, from 954 square feet to 2,941 square feet.
Amenities: Wellness treatment areas as well as Turkish hammam and steam rooms, landscaped walking tracks, padel court, rooftop clubhouse and plunge pool, private cinema, and services including concierge, valet and security.
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