Why property is not always the best thing to pass on to your children

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Most Indian families view property as the longest-lasting asset to bequeath to subsequent generations. Property represents stability, tradition, and wealth security. Parents tend to feel that they will guarantee the well-being of their offspring or otherwise offer a financial buffer by donating a home or piece of land. Real-world complications often render property an unfavourable legacy in practice.

Maintenance expenses and legal intricacies

One of the biggest reasons property is a bad idea is upkeep cost and complexity. If your kids don't live in the same city or country as you, keeping inherited property in decent condition is a logistical and monetary headache. Property taxes, repair bills, tenant problems, or society charges can quickly mount. For shared property, spreading these costs among several heirs is even harder.

Moreover, inherited property is usually accompanied by unclear titles or legal issues, particularly if the documentation had not been brought up to date frequently. Uncompleted mutation records, unresolved property disputes, or ill-defined boundaries can ensnare heirs into years of litigation. Rather than being a gift, the property is a legal curse.

Disputes over distribution among the family

Real estate becomes the epicentre of acrimonious inheritance disputes. Unlike liquid assets like bank deposits or mutual funds, property cannot be divided so easily. If there are more than one heir, disagreements over selling, renting, or retaining the property can become intense very quickly. This has been the cause of family feuds and court litigation in numerous cases. At times, children are left with a unit share in a property which they cannot sell or live in without others' permission.

Real estate does not always appreciate

Another delusion is that real estate will always increase in value. Although that is possible in some city niches, numerous neighbourhoods have experienced plateaued or even falling house prices. Policy changes in urban development, infrastructure developments, or saturation of the market can cap growth potential. If your kids have no need for the property and are unable to sell it conveniently, it turns into a low-liquidity, low-yield asset.

Shifts in ambitions of younger cohorts

The current younger generation is more mobile and would rather rent homes in places where their careers provide a chance, instead of staying stuck to heritage homes. A house in a village or town could be emotionally valuable but practically useless. In this scenario, they might even like money or financial investments, which are easy to use and portable. For most young professionals, inherited property becomes a sleeping asset that they do not utilise nor profit from.

Explore alternative possibilities in estate planning

Rather than leaving immovable assets, explore other modes of inheritance that are easily split and accessed. Mutual funds, life insurance, fixed deposits, or even a healthy emergency fund may be much more advantageous. They can help circumvent conflicts and ensure easy transfer of assets with minimal legal complications.

A considerate legacy is more important than a material one

Handing over property to your children seems like a safe and affectionate act, but it might lead to more issues than solutions. With changing lifestyles, mobility, and market conditions, a flexible, issue-free inheritance plan might be a greater means of securing your children's benefits from your inheritance.