I’m 68 and have a waterfront cottage. My son hopes to inherit it but my yearly bills to maintain it are skyrocketing. Should I suck it up or sell?

Let’s pretend, for example, that Joann has owned a waterfront cottage for the last 28 years. Her son Teddy has fond memories of spending summers there and wants to inherit the cottage someday.

Joann is feeling pressure to make her son’s dream come true, but she’s also worried about the huge costs she’s facing on a fixed income. So, should she continue to struggle to preserve the legacy of the family cottage or should she downsize and get a less expensive place? Let’s see what the experts say.

Retirement needs to come first

While Joann may want Teddy to have the home in a perfect world, the price of his inheritance should not come at the expense of Joann enjoying her retirement years.

“If a 68-year-old is jeopardizing their own retirement by holding onto the home, then it is probably not worth it,” Maria Kourepenos, a real estate agent at Coldwell Banker Warburg, told Moneywise.

Andrea Wernick, another Coldwell Banker Warburg agent, agreed. “Selling the home could provide the financial security and peace of mind she deserves, while still allowing her to leave the proceeds from the sale to her child as part of the estate,” Wernick told Moneywise.

Since a drop in financial well-being can affect an older adult’s health and lead to faster cognitive decline, the stress of continuing to pay for the house could do real and lasting damage. Joann may also feel trapped and end up resenting her son because she can’t use that money for other things — especially as there are lots of houses, but Joann has just one retirement.

“Retirement should come first,” said Wernick. “Sometimes the greatest gift you can leave your children isn’t the house itself. It’s the financial security that comes from making a smart decision.”

There could be solutions worth exploring first

While compromising her retirement security should be out of the question, that doesn’t mean Joann needs to put the house on the market tomorrow.

“It makes sense for the family to sit down to discuss the parents’ overall financial well-being,” advised Kourepenos. “Perhaps the child can make a financial commitment to take on some of the expenses.”