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Estate planning: What should we do about the house? MarketWatch Q: We are about to retire and as part of the process want to update our will. We have two adult children, so do we leave our home to one of them, both of them or have it sold and let them divide the money? A: The estate choices applauded in one household may lead to very unhappy results in another. Given that family dynamics vary so widely, it's up to each household to establish their own plan. First, it's your money. You can make whatever choices you want, but if one goal is to make both children feel happy, that will likely re- quire some work. For instance, do you al- locate inheritances on the basis of need? The preferences among the heirs? Past financial help? Or just split everything down the middle? Remember, these are not just financial questions, there are also issues of ego and status. Second, real es- tate can be a big part of an inheritance. The 2022 Ameri- prise Money & Fam- ily study found that "68% of respondents plan to leave real estate — such as a home, vacation home or land — that they own to their heirs." Third, it's not just personal residences that are left to heirs. Many households also own investment real estate. The Pew Research Center reports that "most rental properties — about 7 in 10 — are owned by individu- als, who typically own just one or two properties," accord- ing to 2018 census data. In other words, small investors. Among investors surveyed, the Ameri- prise Financial study found that 40% had concerns about such properties, 15% were unsure that heirs could afford upkeep and taxes, and 14% worried about how to split such properties when there is more than one heir. Fourth, you may want to sell an in- vestment property now and give the cash to one or more heirs. However, be- fore selling, speak with a CPA, enrolled agent or tax attorney and compare the tax bite of selling while alive with giving property through an estate. Rather than selling now to raise cash, ask if it might be better to refi- nance. One way to resolve inheritance issues is to sit down and talk with the heirs. Sounds reasonable, but such conversa- tions often do not happen. Among those planning estates, said the Ameriprise Financial study, "more than half (56%) have not told their heirs about their intentions to do so — a trend that hints at the financial and emotional com- plexities of trans- ferring real estate, particularly when multiple heirs are involved." Given that in- heritances are often complex, difficult and involve big money, it can make sense to sit down with an attorney who offers elder law services. Ask about wills and related paperwork as well as potential taxes. Then, consider hav- ing the family meet with the attorney to talk about your plans and preferences. Get their input — it may be a way to avoid future disputes and debates. Email your real estate questions to Peter Miller at peter@ ctwfeatures.com. By Peter G. Miller MarketWatch empty nesters at our amenity-rich active adult master plans." As the nation's lead- ing homebuilder, Len- nar builds a variety of home designs that different homebuyers are looking for, from move-up homebuyers, to first-time buyers, the 55+ crowd and even multigenerational families. Now offering 49 active communi- ties to choose from, Lennar has new-home communities now selling in several cit- ies across the market, from Elk Grove to Plu- mas Lake, with prices that start from the $500,000s. For homebuyers in search of homes that can accommodate multigenerational families, Lennar's Next Gen — The Home Within A Home design offers just that. 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Models are open by appointment only, with virtual tours on- line, self-guided tours and Lennar-guided tours available. To learn more or schedule yours, visit www. lennar.com/sacramento or call an internet sales consultant at (916) 304-9711 today. Lennar Corpora- tion, founded in 1954, is one of the nation's leading builders of quality homes for all generations. Len- nar builds affordable, move-up and active adult homes primar- ily under the Lennar brand name. Lennar's Financial Services seg- ment provides mort- gage financing, title and closing services primarily for buyers of Lennar's homes and, through LMF Commercial, origi- nates mortgage loans secured primarily by commercial real estate properties through- out the United States. Lennar's Multifamily segment is a nation- wide developer of high-quality multifam- ily rental properties. LENX drives Lennar's technology, innovation and strategic invest- ments. For more infor- mation about Lennar, please visit lennar.com. 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