When Chelsea Atkinson inherited her late father’s house at the age of 28, the experience was far from the financial windfall some might expect, Business Insider reports.
Her father, who died unexpectedly in 2019 at just 58, left behind a fully paid-off home in Austin, Texas. But instead of a welcome gift, the house became a source of emotional and logistical challenges: unresolved family dynamics, maintenance headaches, and tough financial decisions.
Atkinson’s story is not unique. As baby boomers — a generation that owns over 40% of US real estate, worth an estimated $19.7 trillion — begin to age out of homeownership, their millennial children are poised to inherit millions of properties. This historic wealth transfer is often framed as a potential economic lifeline for younger generations, many of whom have faced higher home prices, stagnant wages, and mounting debt. Yet, the reality of inheriting a home is often more complicated.
Many millennials find themselves unexpectedly responsible for family homes that require costly repairs, sit in less desirable locations, or are simply ill-suited to their needs or lifestyles. Emotional attachments, tax considerations, and family dynamics add layers of complexity. Atkinson, for example, didn’t want to move back into a house filled with difficult memories, and she wasn’t interested in becoming a landlord. Selling it meant confronting both the physical work of clearing out decades’ worth of belongings and deciding whether to invest in renovations or accept a lower sale price.
Despite the looming “Great Boomer Bequeathment,” many families are unprepared for the handoff. Boomers are holding onto their homes longer than any generation before them — often staying for decades without major upgrades. Surveys show that nearly 70% of boomer-owned homes are more than 30 years old, many with outdated infrastructure and appliances. As a result, inherited homes may require substantial investment before they’re market-ready or livable.
Compounding the issue is the lack of estate planning. Real estate brokers and financial advisors caution that too many families wait too long to talk about inheritance, leaving millennials to make difficult decisions in the middle of grief or a healthcare crisis.
Inheriting a home isn’t just about emotional readiness — it’s also a legal and financial challenge. Decisions about whether to sell, rent, or keep a home are tied up in questions about capital gains taxes, property tax reassessments, and ownership structures like trusts or beneficiary deeds. Proper planning, such as using a revocable living trust or exploring a 721 exchange, can help ease the process, but only if such steps are taken in advance.
Without planning, some heirs face steep tax bills or legal entanglements. In high-cost areas like California, property taxes can spike dramatically after a home changes hands. For homes with reverse mortgages or little remaining equity, there may be few options beyond selling.
A more subtle problem is that many of the homes millennials are set to inherit simply don’t align with their needs. They may be located in rural or suburban areas with limited job opportunities or be poorly suited for modern lifestyles. Some are in regions facing increased climate risk, driving up insurance and maintenance costs.
Even for those who want to keep the homes, affording them is another matter. Inherited properties may come mortgage-free, but the costs of upkeep, insurance, taxes, and repairs can quickly add up. Without financial resources set aside by the original owners, heirs may find themselves scrambling to maintain homes that are technically theirs, but financially burdensome.
Experts agree that the best way to ease the transition is through proactive, open communication. Conversations about inheritance, future housing plans, and financial goals can help both parents and children avoid surprises. Atkinson, whose mother has since started such conversations, says that kind of openness has brought her peace of mind.
“Having that open communication with my parent will at least make the burden of what happens afterward easier,” she says.
