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conomists warn that a sweeping “Great Wealth Transfer” will move more than $100 trillion from baby boomers to their children over the next quarter‑century. A recent Choice Mutual survey shows that 66 % of Americans either already have or anticipate receiving an inheritance. That expectation is reshaping how people save: nearly one in ten feel less compelled to build their own nest egg because they count on a hand‑out.

    Yet relying on a legacy is precarious, especially when a large portion is tied to a family home. Baby boomers own roughly $18–19 trillion in real‑estate wealth, but health‑care bills, long‑term care, maintenance, and title complications can erode or eliminate that value. If you’re planning to inherit a house, you need to understand how to protect it.

    ### The gap between projected and actual inheritances

    On average, young adults expect to receive about $335,000 from their parents, and 8 % foresee sums of $1 million or more. These figures illustrate the optimism surrounding the transfer, but they also mask the reality that many inheritances are smaller, delayed, or contested. Inflation and rising costs mean retirees often have fixed incomes that lag behind expenses, forcing them to tap into their assets.

    Jessica Vance, a real‑estate investor, recently saw a family lose a home at auction because the parents couldn’t afford their father’s long‑term care. The property had equity, but selling it covered medical bills, leaving the heirs with nothing. This scenario is common: retirees and their families spend what they hoped to leave on health‑care and debt tied to the home.

    ### Debt: the silent threat to real‑estate inheritances

    Tyler Livingston, an estate‑planning attorney, points out that debt is the biggest danger to property inheritances. Retirees’ debt has nearly doubled from 1992 to 2022. While leveraging a home can help cover living costs, it can also deplete the equity that heirs would otherwise receive. If a property carries mortgages, home‑equity loans, or unpaid taxes, those obligations must be settled before heirs can claim anything.

    Common pitfalls include:

    * **Reverse mortgages and home‑equity lines** – These convert equity into cash, but fees accumulate and repayment may require selling the house if payments can’t be made.

    * **Probate and title issues** – Without a trust or transfer‑on‑death deed, a property may have to go through probate, a costly and time‑consuming process that can force a sale if heirs disagree.

    * **Ongoing costs** – Property taxes, insurance, and maintenance can run into thousands annually. In high‑value markets, the tax burden alone can compel a sale.

    Livingston notes that property taxes are often the most significant hidden threat. Rising values can leave heirs with a valuable asset that carries a heavy tax bill, forcing them to liquidate if they can’t afford it.

    ### Protecting the inheritance

    Very few families are prepared. Only 24 % of U.S. adults have a will, and even fewer have a trust or accurate property titles. A 2024 AARP study shows that the percentage rises to about 50 % among those 50 and older, but still leaves a large gap.

    The first line of defense is solid paperwork: a will, a trust, and clear titles that avoid probate disputes. Families should also plan for long‑term care by setting aside savings or purchasing insurance to keep nursing‑home costs from draining home equity.

    Communication is equally vital. Discussing money, health‑care plans, and inheritance expectations early and openly can prevent conflict and surprises later. Attorneys, CPAs, and financial planners can help craft a strategy that balances retirees’ quality of life with preserving assets for heirs.

    ### Bottom line

    An inheritance can be a generous gift, but it should never be the cornerstone of a family’s financial future. Rising health‑care costs, debt, and taxes can erode or erase what’s left behind. The safest approach is to save and invest independently, treating any legacy as a potential bonus rather than a guarantee. Proactive planning and intentional estate management are the best safeguards for both generations.