Should Retirees Leave Their Home to Kids or Downsize? Real Estate Advice for Bonney Lake and Lake Tapps Seniors

As a real estate agent in Bonney Lake and Lake Tapps, I often hear from retirees and their families about one of the biggest decisions they face: what to do with the family home in retirement. For many, the house is their largest asset and a central part of their legacy plan. Is leaving your home to your kids really the best move? The data might surprise you. Let’s explore what retirees are doing—and why downsizing now could give you more freedom and lighten the load for your loved ones later.

Most Retirees Hold Onto Their Homes—Here’s Why

It’s common for retirees to stay in their homes for the long term. National surveys show that over 60% of retirees have not moved since retiring, and about half of older Americans still own their homes at the time of their passing. This means their children or beneficiaries often inherit the property and are left to decide whether to keep or sell it. The reasons for holding onto the home are clear:

• Emotional connection and comfort: Many retirees feel attached to their homes and the memories made there.

• Stability and familiarity: Remaining in a known community provides security.

• Financial safety net: Home equity can serve as a backup for unexpected expenses.

• Legacy planning: A significant number of retirees want to leave their home as an inheritance, believing it will provide a meaningful gift to their children or grandchildren.

The Case for Downsizing: Helping Your Kids and Yourself

While leaving a home to your heirs is a generous legacy, it’s important to consider the practical side. Inheriting a property can sometimes be a burden—managing repairs, cleaning out decades of belongings, and selling the home can be stressful for your family. That’s where downsizing comes in as a smart, caring alternative.

Downsizing can help your kids by:

• Simplifying your estate: A smaller, more manageable property means less work for your beneficiaries.

• Unlocking equity: Selling a larger home can free up cash, allowing you to gift financial support to your children or grandchildren now, when it might make the biggest difference. Think College education or helping with the birth of a granchild. 

• Reducing stress: Less maintenance and lower costs benefit both you and your family.

• Providing flexibility: With extra funds, you can enjoy your retirement—traveling, pursuing hobbies, or spending quality time with loved ones.

Enjoy Life Now—A Lesson from Bill Perkins

Bill Perkins, in his book Die With Zero, highlights that many retirees actually see their net worth increase during retirement, often spending down only a small portion of their savings. For example, retirees with $500,000 or more at retirement typically spent down just 11.5% of that money over 20 years or by the time they died. Perkins’ message is clear: don’t let your hard-earned wealth go unused—plan to enjoy it while you can.

“The goal isn’t to die with nothing—it’s to die with nothing left unlived.”
— Bill Perkins, Die With Zero

Your Real Estate Legacy: A Trusted Perspective

As a local real estate expert, I’m here to help you make informed decisions about your home, your legacy, and your retirement lifestyle. Whether you’re considering staying put, downsizing, or exploring retirement communities, I can provide:

• Market analysis for your home’s value

• Guidance on selling, buying, or gifting property

• Connections to trusted estate planning professionals

• Personalized advice tailored to your family’s needs

Make the Most of Your Retirement

If you’re a retiree in Bonney Lake, Lake Tapps, or the surrounding area, remember: your home is more than just a house—it’s a powerful tool for both legacy and lifestyle. Whether you want to leave your home to your kids or use your equity to enjoy life now, the choice is yours. And if you’re ready to talk about your options, We are here to help you every step of the way—so you can enjoy your retirement and give your family the best possible future.

Ready to explore your real estate options? Contact us and let’s make a plan that works for you and your loved ones.

Susie-

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