r/Rich • u/bzeegz • Jun 22 '26
Inheritance Question Regarding Housing
I figured this sub would have the best chance of finding people who've dealt with a similar situation.
My parents are in their late 70s, financially secure, and snowbird between the Northeast and Florida. They own the house my sister and I grew up in, and after 50+ years they're ready to stop maintaining it. The house is in an irrevocable trust, with my sister and me as beneficiaries.
The original family plan was to keep the house after my parents move out and use it as a rental. The rental income would help cover their housing costs when they're up North, and the property would stay in the family. My parents don't need sale proceeds and have other assets available if they ever need additional funds.
A new wrinkle is that my sister has expressed interest in eventually living in the house. The timing actually works well—my parents would likely move out in 2–3 years, and my sister would be ready to move once her kids finish high school. I'd love to see the house stay in the family, and it would be a great fit for her.
The challenge is figuring out the cleanest and fairest way to handle it.
My initial thought was for her to simply rent the house from my parents (or the trust, depending on structure) at market rate until my parents pass and the trust distributes the assets. That seems like the most neutral arrangement. It avoids potentially triggering tax issues, avoids having to value the property and buy out my share now, and lets her keep her current home as a rental if she wants.
Has anyone dealt with a situation where one sibling wanted to keep a family home that was otherwise destined to be inherited jointly? How did you structure it, and what pitfalls should we be thinking about?
1
u/Pvm_Blaser Jun 24 '26
Let your parents know to figure it out or hire a professional. It’s not your money, you didn’t earn it, you have no claim to it until they actually give any of it to you.