Many well-meaning parents decide to leave the house for their kids when they die. Maybe they think the kids will maintain it as a place for family reunions. Or perhaps they just never got around to thinking about how the kids would share it.
While a share in a piece of real estate can be a wonderful thing to receive, as it is typically worth quite a bit, it is not without complications. The more kids the house is left jointly to, the more difficult it can become when they do not all want the same thing. Here are a few options:
Sell it and split the profits
It allows everyone to do what they want with their share of the proceeds. Yet even then, people might have different opinions about how much to sell it for. One heir, desperate for cash, might want to sell immediately, even if the market is low. One heir, with more financial security, may prefer to sit on it until prices rise.
One person buys the others out
Maybe one child has sentimental reasons to keep the house. Or perhaps they see it as a good investment. If they can take over any mortgage and buy the others out, it can work well. Yet difficulties can still arise if that person then sells the property for far more and others feel shortchanged.
Rent it to provide an income for all of you
Some places make great rentals. If there is a high demand for family homes in your area, you may be able to provide yourselves with a useful monthly income for years to come. Be sure to agree on how you will manage it and how much you will set aside for maintenance and the like.
Whatever arrangement you decide on, get legal help to make sure the process is fair and draw up any relevant paperwork.