Quote:
Originally Posted by Biggd
Just like previous generations, they sell it off and split the proceeds!
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Yes, but it's the splitting of the appreciated house that's the problem...
House appreciates from $100K to $1MM, and the old folks also have $2MM at Fidelity. Mom and Dad die leaving $3MM to 3 kids. Yay!...but it takes all $3MM to get each kid a house like Mom and Dad. Before the run up in real estate they would have had $2.3MM, which would have translated into 3 houses and extra cash
(obviously I've picked numbers at random and simplified wrt inflation, other assets, etc, but the general point will hold with real data)