For some, multigenerational housing provides just too much togetherness. There are, however, other creative ways of addressing these intergenerational concerns. One example: The couple that purchased a nearby condo in anticipation of their parents’ future needs. Until the parents are ready to move, the unit is being rented to produce some additional income. And there are countless adult children who take over the large homes where they were raised when parents downsize to one-floor living or smaller quarters during retirement. One family I know is considering renovation of the parents’ large Victorian home for the daughter and her family with a separate apartment for the parents to age in place.
As I talk about my own project with both clients and friends I realize that my family is not alone in our desire to bring extended families together. Many of us watched our parents try to assist our grandparents from a distance and we’re now in dual-income households with children. While we balance the needs of work and children, we’re mindful of the needs of our parents as they age. Given the demands on our busy schedules we’re placing a premium on the convenience of having our parents nearby and appreciate the benefits of closer family relationships.
I encourage my clients who are managing multigenerational estate planning issues to discuss options early and often. While income and estate tax efficiency is important, personal goals must be balanced appropriately to develop the best family plan.
Kristin Wildman Shirahama is a partner in Bowditch & Dewey LLP’s Estate, Tax and Financial Planning practice in Massachusetts. The practice is ranked nationally by U.S. News and World Report: Best Lawyers “Best Law Firms.”