Buyer Guides

Can a child or heir inherit a 55+ home?

By Chris Howell, Shannon Sheahan and Tricia Sheahan — REALTORS®, Samson Properties · Northern Virginia 55+ communities

Two different questions

People tend to collapse these into one, and they aren’t the same thing at all.

Ownership passes the way any other real estate does — through the will, the trust, or intestacy. An age restriction doesn’t prevent a 40-year-old from inheriting a home in a 55+ community. They own it.

Occupancy is governed separately, by the covenants recorded against the property. That’s where the age restriction lives, and it binds whoever owns the home — including someone who never chose to buy into it.

So the practical question isn’t “can my daughter inherit the house?” It’s “can my daughter live in it, rent it out, or is she going to have to sell it?”

Does federal law let an heir stay in a 55+ home?

The Housing for Older Persons Act lets a 55+ community keep its exemption as long as at least 80% of occupied homes have a resident aged 55 or older. That 20% margin exists partly for exactly this situation: HUD’s guidance describes it as intended, in part, to keep communities from losing their status when a qualifying resident dies and a surviving spouse or underage heir remains in the home.

But notice what that does and doesn’t mean. The cushion protects the community from losing its exemption. It does not give the heir a right to stay. HUD is explicit that whether an underage heir or surviving spouse may occupy the home is a matter of state and local law and of the private agreements between the developer and the buyers — in other words, the covenants.

What usually happens in practice

Communities land in different places, and the range is wide enough to be worth knowing before you buy rather than after:

• Sell within a set period. Some communities allow an heir to hold and market the home but not occupy it, sometimes with a deadline measured in months.
• Rent it out, subject to the same age rules. Where rentals are permitted, the tenant usually has to meet the age requirement the owner would have. Many communities also cap the total number of rentals — see our guide to renting out a 55+ home.
• Occupy it, with permission. Some associations grant hardship exceptions, or allow an heir to live there while the 20% margin has room. This is generally discretionary — associations aren’t obligated to grant exceptions, and many deliberately don’t.
• Occupy it if the heir qualifies. An heir who is themselves 55 or older is usually in the clear.

Can a surviving younger spouse stay in a 55+ home?

Closely related, and worth asking at the same time: if the qualifying spouse dies first, may the younger spouse stay? Many communities permit it, some permit it for a defined period, and federal law doesn’t require any of them to. Because this is the scenario families are least prepared for, it’s the one most worth resolving while everyone is well.

What to check before you buy

Ask for the recorded covenants — the actual documents, not the sales brochure — and read the occupancy and leasing sections. Four things to look for:

• The minimum age for any permanent resident
• What happens on the death of the qualifying occupant, and whether a surviving younger spouse may remain
• Whether hardship exceptions exist, and who has the authority to grant them
• The rules and caps on leasing, since renting is often the fallback when occupancy isn’t permitted

Then tell your estate attorney what you found, so the plan for the house matches what the community will actually allow. A will that leaves the home to a 45-year-old child is fine. A will that assumes that child can move in may not be.

This is general information, not legal or estate planning advice. Every community’s recorded covenants control and can differ from the general patterns described here. Review the governing documents before you make an offer, and consult an attorney about your own circumstances.