Retirement planning comes with many questions that span beyond which 55+ community you’ll choose to enjoy your leisure years. Selecting between the top 10 55+ golf communities may seem like the most important decision you’ll make, but the more mundane aspects of retirement are best considered in advance so you can hit the green stress-free. This includes estate planning.
One of the top retirement planning questions we often encounter is: “Can my children inherit my home in a 55+ community?” Estate planning is essential in mapping out your next chapter. However, the question of inheritance in retirement communities is not as straightforward as it may seem. Every community is unique in its by-laws and standards regarding age-restricted residency, home sales, and other criteria that must be met when transferring ownership. Understanding how this information might impact your children’s inheritance empowers retirees to plan and discuss their options with real estate experts and loved ones. Ultimately, effective estate planning ensures your assets are taken care of.
Let’s start planning today so you can start golfing tomorrow.
Questions To Ask Your Children When Estate Planning in 55+ Communities
Sometimes the right choice for your real estate assets is the one that best aligns with your goals. Open up the conversation of inheritance planning with your children before making any final retirement decisions. We’ve put together a few key questions to guide the conversation.
Will Your Children Reside in the Inherited Home?
If your children are planning to reside in the inherited home, it’s possible to become a member of a 55+ community while under the age restriction. This depends on the specific rules of the community.
A common rule for age-restricted communities is what is known as the 80/20 rule. In short, 80% of households in a given community must meet the age restriction. It’s rare for residents to be younger than the age guidelines. However, some communities allow 20% of households to be made up of residents under the required age.
It should be noted, however, that this is often not the norm. Many premiere 55+ communities strive to keep their occupancy at age 55 and over. So if residency is going to be the primary use for the home, it’s best to investigate which communities might allow your children to become residents before making a final move-in decision.
Will Your Children Sell the Inherited Home?
Making a plan to sell the home upon inheritance opens up a lot of freedom in terms of finding the right retirement community. Strictly 55+ communities can be taken into consideration with this option on the table. It’s worth focusing instead on homebuying trends within the area.
Many retirement hot spots are growing. This trend promises a rise in home value over the next several decades. Choose a tax-friendly retirement spot that looks likely to continue booming. This will make the home sale a seamless process.
Will Your Children Lease the Inherited Home?
Renting an inherited retirement home can often be the trickiest option. Whether or not the home can be rented out is dependent on homeowners’ association (HOA) rules. This option is further restricted by a smaller rental pool of 55+ tenants only.
Many retirement communities are in high demand. However, navigating the ins and outs of tenancy in a 55+ community can be complex and often not an undertaking many children wish to grapple with upon inheriting property.
Questions To Ask 55+ Communities Regarding Inheritance and Residency Rules
The next step in planning for your retirement is to investigate which communities are the most aligned with your plan for your real estate assets. Of course, knowing the right questions to ask can come in handy when touring your dream 55+ communities.
Does the Community Allow Residents Under Age 55?
The first question to ask is whether or not a community makes exceptions for residents under the minimum age. This might include inheritance, grandchildren residing with grandparents, and other exceptions to the norm. Knowing what to expect can be informative both for your own living standards and when planning for your real estate assets.
What Is the Current Occupancy and Expected Future Occupancy?
Knowing how close a community is to reaching its under-55 resident cap is another important detail to consider. Is the allotment of under 55 residents commonly met? How competitive are these residencies and what is the process for securing a spot? Are any additional restrictions placed on residents who do not meet the minimum age requirement or are all amenities available to every resident?
These questions are great conversation starters for getting to know your new community and understanding inheritance options.
How Is Inheritance Handled in the Community?
Be sure to ask directly how residents commonly handle the issue of property assets. This can give you additional ideas and workarounds for issues surrounding age restrictions. If possible, try to connect with residents who have planned out their property inheritance. It’s always helpful to know how others in the community are planning ahead. They may also provide feedback on the overall resident experience.
Your home is an investment for your legacy. Although every active retiree is most eager to answer questions relating to lifestyle and amenities, taking a moment to nail down the details of your inheritance now will ensure fewer worries in the future.
55+ communities are often unique in how retirement home assets can be inherited. Although it is not impossible for your children to inherit and reside in an age-restricted community, each HOA has its unique standards, rules, and guidelines that govern the values of the community. Explore your options for property assets while you tour some of the best 55+ communities for active adults and don’t forget to ask the hard questions along the way.
55places Can Help Answer Your Questions!
Looking for more guidance on planning ahead for retirement? Find out how to sell your current home and start the downsizing process.
