Los Angeles, Calabasas, Westlake Village and San Fernando Valley, CA Estate Planning Firm
Not every inheritance is a windfall. Beneficiaries sometimes discover that the property they received—a modest home, a parcel of land, or a fractional interest in a family cabin—costs more to keep, maintain, insure, or sell than it is worth on paper.
This situation is more common than many people expect, particularly when real estate has deferred maintenance, outstanding liens, property tax arrears, or environmental issues that were never addressed during the original owner’s lifetime.
Why It Happens
Parents often assume that leaving real estate to children is always a gift. In practice, the beneficiary may face immediate expenses: probate-related costs, capital gains considerations if the property is sold, ongoing property taxes, and the burden of managing an asset in another state. When several siblings inherit together, disagreement about whether to sell, rent, or retain the property can add legal fees on top of carrying costs.
Planning Ahead
A thoughtful estate plan addresses not only who inherits but whether they can afford to inherit. Options may include directing that property be sold and proceeds divided, holding real estate in a trust with clear instructions for the trustee, or making unequal cash gifts to beneficiaries who will not receive the property so that the overall inheritance feels fair.
We encourage clients to discuss the reality of each major asset with their family and advisors before documents are signed. An honest conversation today can prevent a costly surprise tomorrow. ← Back to Articles/Awards