It’s a common problem – a group of Heirs inherit the house that mom and dad bought 20 years ago that has really gone up in value over that time. Each heir would love to keep it, but there isn’t enough other money in the Estate for any one heir to buy out the others.

Of course the Property could be sold and the proceeds distributed to settle the estate. But why not consider setting up a partnership and get Cash Flow for life instead of a lump sum?

Here’s what might be overlooked – the tax base on that property is very low since it’s been in the family for so long. It’s safe to say you will never get the opportunity to own Real Estate in San Diego with taxes that low again. It would be a shame to let that go!

Let’s say there are three heirs – why not own one third of the property, rent it out and take one third of the rents forever? Like a pension plan only better, since rents tend to go up over time and keep up with inflation.

If you did get a lump sum inheritance, what else would you do with the money anyway? Buy CDs? Or maybe a different investment property that you would own outright? Perhaps, but when you consider the higher tax rate, would it really cash flow any better?

My point is to be sure you understand all the moving parts when dealing with real estate involving seniors. Just like there are special programs for first-time homebuyers and there are agents who specialize in those, there are also special considerations when dealing with your parent’s last home and there are agents who specialize in that. A Seniors Real Estate Specialist has the experience to bring a wealth of additional options that you might not have considered.

The post Can’t afford to buy out the other heirs? Try this appeared first on Senior Communities.