Real Estate Succession | Team D’Astous Cloutier

Should you sell or hold on to your assets in anticipation of a real estate succession?

June 19, 2024
1 minute

The choice to sell or retain property in real estate succession involves various factors. Each option has distinct consequences for your financial future and that of your heirs.

Financial implications

From a financial perspective, it’s important to evaluate whether selling your properties can enhance your situation in the short and medium term. For instance, the liquidity gained from a sale could be used to reduce debts, support a comfortable retirement, or invest in other opportunities. Additionally, in certain situations, selling may be necessary to simplify your estate before passing it on.

Tax implications

The tax implications are an important factor to consider. Selling your real estate may lead to taxable capital gains, whereas transferring it as part of an estate could incur other taxes. It is recommended to consult a tax expert to evaluate these implications and identify the most advantageous strategy for your situation.

Property management

It is also essential to consider the wishes and ability of your heirs to manage the properties. If heirs live far away or lack the interest or skills to manage these properties, it might be wiser to sell them. This can spare your heirs the burden of property management, potential renovations, and rental challenges.

Real estate market

s real estate brokers, we recommend considering the current state of the real estate market. If the market is favorable, selling your property during your lifetime could help you maximize your returns. However, if the market is weak, it may be more beneficial to hold onto your property until conditions improve, ensuring a better return on your investment.

We are here to help you evaluate these issues. Contact us to discuss your options and receive personalized advice!