The Family Home
Decision Guide
Sell, rent, or keep? A clear framework and printable worksheet to weigh the money, the taxes, and the emotions — together as a family.
Sell, Rent, or Keep — Side by Side
Most families are really choosing between three paths. Lay them out next to each other before anyone gets attached to an answer.
Sell Now
Convert the home to cash
Why it works
- Frees up the most liquid capital
- No maintenance, taxes, or insurance to carry
- Capital gains exclusion may apply
- Family can close this chapter together
What to watch
- Market timing may not be ideal
- Emotionally the hardest step
- One-time decision, hard to reverse
Rent It Out
Keep it, but let it work
Why it works
- Ongoing monthly income
- Retains the asset for the family
- Can return to it if plans change
- Bridges the market until a better time
What to watch
- Landlord duties and repairs
- Tenant screening and legal paperwork
- Income may affect benefits eligibility
- Delayed capital gains questions
Keep It
Hold on for now
Why it works
- No rush — buy time to decide
- Keeps the door open for aging in place
- Familiar and emotionally comforting
- Furniture and belongings stay put
What to watch
- Ongoing taxes, insurance, and utilities
- Maintenance on an empty or aging home
- Security risk while unoccupied
- Costs can quietly add up month after month
The True Cost of Keeping the Home
A home you don't live in still costs money every month. Add it up before you decide to hold on.
Property taxes
Monthly share of the annual bill
Homeowners insurance
Higher if the home is vacant
Utilities
Heat, water, electric — even when empty
Maintenance & repairs
Lawn, snow, gutters, appliances
Vacancy risk
Burst pipes, theft, storm damage
Opportunity cost
Cash tied up that could be invested
Financial & Tax Factors
- The capital gains exclusion may let a single filer exclude up to $250,000 of profit, or $500,000 for a married couple filing jointly — if the home was a primary residence for two of the last five years.
- Special rules can apply when a homeowner moves into a care facility, and a surviving spouse may keep the full $500,000 exclusion in some cases.
- Rental income is taxable and can affect Medicaid, VA benefits, and other income-based programs. Weigh the tax cost against the rent.
- If the property has appreciated significantly, talk to a tax professional before deciding — the timing of a sale can matter as much as the price.
- Cost basis, improvements, and prior years of records all affect the final tax picture. Gather paperwork early.
The Emotional & Family Side
- Grief and identity: the home often holds decades of memories and can feel like a member of the family.
- Sibling dynamics: who wants what, who carries the cost, and who makes the final call should be agreed in advance.
- The senior's wishes come first whenever possible — start there, not with the spreadsheet.
- Timing pressure: a move date, a health change, or a market shift can force a faster decision than expected.
Questions to Answer Together
Write it down.
Decide together.
The hardest part of this decision is holding it all in your head at once. Print this worksheet, fill in the numbers side by side, and bring it to the family conversation — or to your tax and real estate professionals.
This guide is general information only, not tax or legal advice. Every family's numbers are different — please review your situation with a qualified tax professional or attorney before deciding what to do with the family home.
Family Home Decision Worksheet
Print it and fill it in as a family
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