Chelsea Atkinson knew that her father’s house might eventually belong to her, though she didn’t expect that day to come so soon. The sudden passing of her father in 2019 at just 58, after complications from earlier lung cancer, left her reeling. Atkinson was 28 and an only child, already settled into a home in Austin where she grew up. While inheriting her childhood home—mortgage-free—could have seemed like a stroke of luck, it soon revealed a host of challenges she wasn’t prepared for.
Her relationship with her father had deteriorated in his later years, leaving her reluctant to return to a home filled with memories. She briefly contemplated turning it into a rental property but quickly dismissed the idea, realizing she had no desire to become a landlord. Selling seemed like the only option, but the aging house required significant upgrades, necessitating a difficult choice between substantial investment or selling at a loss.
Atkinson also faced the daunting task of managing her father’s possessions—everything from sentimental items to antiques—and the cost of removing unwanted clutter loomed large. “All those questions started popping up,” she recalls, feeling unprepared for the sudden responsibility.
As baby boomers age, many millennials will find themselves grappling with similar dilemmas. A significant wealth transfer is on the horizon, as the oldest boomers are set to turn 80 soon. As they transition into nursing homes, move in with family, or pass away, they will leave behind a considerable amount of real estate that will present unique challenges for their millennial children. Many will inherit homes that require extensive renovations and face a sluggish housing market that may not favor their financial interests.
While inheritances can offer potential financial gains, they often come with burdens—family disputes, taxes, and high upkeep costs. Scott Westfall, a Virginia Beach real estate broker, emphasizes the importance of conversations about estate planning, underlining that discussing plans can alleviate burdens later on.
With boomers owning approximately $19.7 trillion in real estate—41% of the total—millennials, who hold just 20% of the market, are faced with the reality that many will not see the expected financial windfall from inheritances. As boomers stay in their homes longer, a trend is emerging where they often choose to rent out properties rather than sell, adding further complexity to inheritances.
Ultimately, Chelsea Atkinson decided to sell her father’s house to a neighbor who had cared for him, finalizing the deal at $200,000—well below market value. Though she faced a year of decluttering, she felt grateful for the time to make her decision thoughtfully, a stark contrast to the haste that often follows a death.
Today, she has open discussions with her mother about possessions and future plans, enabling them both to prepare for what lies ahead. “Having that open communication will at least make the burden of what happens afterward easier,” she says.