Q: How can one pass down their family home?
A: A family home isn’t just a piece of real estate—it’s often the emotional anchor of a family’s story. It holds memories, milestones, and meaning. That’s why deciding how to pass it along requires both heart and strategy. At Windjammer Wealth Advisory, we believe thoughtful planning helps ensure your legacy stays on course, avoiding unnecessary taxes and turbulence for your heirs.
Here are three ways to navigate the handoff of your home to the next generation:
- Sell it
If you’re ready to move or want to access your home’s equity, selling it to a child or heir can remove it from your taxable estate and establish a new cost basis, potentially reducing future capital gains. Just be cautious not to “undervalue the vessel”—selling below market value could trigger gift taxes. - Gift it
Gifting a home during your lifetime can seem generous, but the tax tides can shift quickly. The gift counts toward your lifetime exemption. As of January 1, 2026, the federal lifetime gift and estate tax exemption is $15 million per individual. For a married couple, this exemption is effectively doubled to $30 million. However, your heirs may face higher capital gains later since they inherit your home’s original cost basis. - Pass it through your estate
Leaving your home via a will, transfer-on-death deed, or trust may provide smoother sailing. Trusts, in particular, help avoid probate and can include funds for maintenance and taxes—reducing the chance of family squalls over costs.
Whichever course you choose, communicate your intentions clearly with loved ones and coordinate with a CFP® professional and estate attorney. With a well-charted plan, your home can remain a cherished harbor—not a source of future unnecessary conflict.
Your Financial Navigator.
Johannes