Leaving a family home to children can be complex.

Many couples work hard to buy a house to make a home for themselves and their children.

Family homes can be good financial investments filled with many beautiful moments and memories.

While many parents hope leaving this house to their children will hold everyone together and remind them of their love, these dreams can be misguided.

According to a recent Realtor.com article titled "Inheriting a Home With Your Siblings? Here's All That Can Go Wrong," leaving a home to adult children can lead to many issues.

Not all adult children will have the same plans for an inherited family home.

Consider a scenario where three adult children inherited the family home after the death of both parents.

These three did not have a consensus about the fate of the house.

One of the siblings desired to keep the home, while the others wanted to sell it and divide the money.

After the property was appraised, the sibling who desired to keep the home bought the shares from the other siblings.

One of these siblings purchased a boat with the proceeds, and the other spent it on expensive experiences.

After several years, the property value of the home skyrockets.

The sibling who purchased the home decided to sell it and move closer to his wife's family.

Because the former family home tripled in value, the two siblings who had sold their shares believed they should be given a portion of the profits.

To complicate matters, other family members agree with these two siblings.

When estate planning attorneys were consulted, all agreed the sibling who purchased the home owned the property without an obligation to the remaining siblings.

Because they had sold their shares, these siblings were not entitled to any portion of the profits.

If the property had lost value, then these siblings would not have offered or been compelled to share in the losses sustained.

While some people fight more over the family home itself, others have greater disagreements about its contents.

What does this mean?

Everyone should have a comprehensive estate plan outlining the distribution of personal property.

Simply leaving it to heirs to work out on their own often leads to division.

Some beneficiaries will prefer to have an estate sale company sell the content of the home and then split the profits.

Others may choose to flip coins to see who receives each asset.

While all families hope their loved ones will be honest individuals, some family members may take property without telling others.

Because some aging parents choose to declutter their homes while alive, it can be hard to tell what was taken or purged.

Is it possible to prevent fights over a family home or its contents?

Creating a last will and testament with an experienced estate planning attorney can help you develop a plan to meet your needs and prepare for possible issues.

Your instructions should be clear about whether the home should be sold and how shares are to be distributed.

By including a provision stating that the sale of shares to one sibling is final and future gains cannot be sought by the other siblings, you can create clear expectations for the whole family.

As a parent, you should never leave property to one child with the expectation that the proceeds will be shared with other siblings or family members.

When property is left to one person, there is no legal means to make this individual share.

Yikes!

The best way to provide for all of your desired beneficiaries is to give inheritances to each.

When a beneficiary is also serving as the executor or trustee, this individual can be in a challenging position.

It will be vital for the siblings and parents to meet with an estate planning attorney to clarify the role and distribution of assets to avoid triggering an estate battle.

While many families do not think they need to codify their wishes in writing, inheritance of the family home or other assets demands a comprehensive estate plan created with the help of an experienced estate planning attorney.

This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.

Reference: Realtor.com (Sep. 14, 2024) "Inheriting a Home With Your Siblings? Here's All That Can Go Wrong"