Legacy Transactions

More families are implementing “legacy transactions” to accomplish their quality-of-life objectives.   A legacy transaction is the sale or transfer of an asset to a younger member of the family, whether outright or in trust.

A legacy transaction may be useful for a variety of purposes, including the following:

  • An older family member downsizing from a larger home to a smaller condo or co-op
  • A younger family member purchasing a first home
  • Leveraging a property to get cash for retirement using a forward mortgage instead of reverse mortgage
  • Transferring assets for Medicaid planning purposes

Depending on the market conditions and the family’s objectives, “keeping it in the family” with a legacy transaction may be more advantageous than an institutional product or a brokered transaction.