Downsizing Your Home: What You Need to Know

Whether you’re helping aging parents downsize their home or getting ready to make life simpler for yourself, deciding what to keep and what to part with can be daunting. The first step is taking the emotion out of the process. To help you get started, ask yourself the following:

• Have you used the item during the past year? As a general rule of thumb, if you haven’t used it, you can probably live without it. Whether it’s an outfit, a kitchen appliance, a game or other item, now’s the time to let it go.
• Is there a place for the item in your new home? Only take with you the furniture, accessories and other items that you’re sure to use in your new locale. If you are uncertain, make a drawing of the floor plan and map out what will go where.
• Does the item fit your current style? Whether it’s a bookcase from your grandma, a desk from your father or something you originally purchased, if it doesn’t offer the look or functionality you need, part ways.

Other important recommendations:

• Call an appraiser. If you need help determining the value of the items you plan to sell, call an estate or auction appraiser in your area for help. Many appraisers also offer liquidation services to help you sell your stuff.
• Donate. Bring clothing and other miscellaneous household items to a local donation center or a place of worship with an outreach program. Make an itemized list and be sure to get a receipt, so that you can deduct the value of these items on your next tax return.

For more information about reducing the size of your taxable estate when you downsize your home, consult your legal, tax and financial professionals. They can make recommendations that will help you avoid the pitfalls that pass on more of your estate to Uncle Sam than to those you care about most.

Scott Berman is a Financial Advisor and Managing Director at Berman & Associates, a financial advisory practice of Ameriprise Financial Services, Inc.  Advisor is licensed/registered to do business with U.S. residents only in the states of CA, CT, DC, DE, FL, KY, MD,ME,MO, NC, NJ, NY, OH, PA, SC, TN, VA, WA, WV.

Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients.

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