The great wealth transfer could result in a $25 trillion real estate transfer, with $105 trillion expected to be passed down by 2048. Passing down real estate can lead to financial and emotional pitfalls, but there are ways to minimize taxes and prevent family disputes. One option is to transfer real estate through a will or trust to avoid a major tax bill.

Using LLCs and trusts can shield homes from lawsuits and protect assets, ensuring heirs are not personally liable for damages. Setting up an LLC and trust for the kids’ benefit can also save on transfer taxes and prevent creditors from putting liens on the property. It is important to outline who gets to use the home and how, to prevent conflicts among siblings.

Parents should set aside liquid assets for the house’s upkeep and insurance to avoid financial burdens and resentment among siblings. Planning for the likelihood that heirs may want to cash out is crucial, as circumstances can change. Creating buyout provisions and contingency plans can help ensure a smooth transition of real estate assets among family members.

Read more at CNBC: What wealthy parents need to know about giving real estate to heirs