The Final Fate of Your Real Estate Assets May Not Be What You Hope
Most people approach it with wishful thinking. Whenever they think about leaving their real estate assets to their heirs, suddenly their faithful “practical investor” mindset abandons them, and they become incurable romantics.
They envision their real estate assets as cherished long-term investments, managed to their maximum value by their clever progeny, maybe for generations to come. Few pause to think realistically about it, or they might plan differently.
To get the real answer, you have to examine the people factor. Whenever other people are involved, your heirs in this case, the outcome may not meet, or maybe even resemble, your expectations. Nobody’s malicious, but they’re not perfect either. Let your practical investor side take control again for a moment, and take a closer look at the subject.
In your mind right now everything will be done the way you dream, but human behavior says it might be closer to your nightmare. An early, sober look and smart planning could give your dream the fighting chance it deserves, and everyone will benefit.
In my article, “Tough Talk ” I address what is arguably the ugly truth. If you’ve got a bit of a stomach for it, you might want a little of this medicine before its too late.
Comments (2)
Actually, it's a thought. Unless you know you can trust someone else to manage your assets to their fullest potential, you are probably the best qualified person to divest them. You can then tuck the money into a less hands-on investment vehicle for your heirs that they are more likely to let it sit and grow.
Robb Terranova, about 15 years ago
Other than teaching your heirs to manage their assets after your death, what else do you recommend? Sell your property before you kick the bucket?
Joshua Dorkin, about 15 years ago