An unexpected financial windfall like an inheritance can be life-changing. However, for those of us lucky enough to receive an inheritance, there are many financial implications associated with it.

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New York Life reported that the so-called “great wealth transfer” is underway. Trillions of dollars in assets are being passed down from older generations to their heirs. About 15% of American adults reportedly expect to receive an inheritance within the next decade.

Sometimes the inheritance even includes a house.

If you suddenly inherit a home from a deceased parent, grandparent or other relative, you must make the important decision of whether to sell it or rent it.

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Options when inheriting a home

According to GOBankingRates, you have the following options when it comes to inheriting a home:

• Sell ​​it now: When you inherit a home, you may be inclined to sell it immediately. If the inheritance suddenly makes you a homeowner, you will have to bear the costs of property taxes, building insurance and maintenance. If you don’t have the funds to cover these costs, you could end up in debt. Selling the home quickly can give you a large sum of money that can be used to pay for other financial obligations.

• Wait to sell: If you inherit a home, you may want to wait to sell. Some good reasons for this might be that the real estate market is not doing well, that you will make more profit by holding the property longer if you wait to sell, or maybe you are not sure if you want to sell the home. Perhaps it was your childhood home or your family home and has sentimental value. Waiting to decide to sell gives you more time to evaluate the real estate market, your personal finances, and your feelings.

• Rent now: Renting out an inherited home as quickly as possible can provide an additional, mostly passive, source of income. Not only does rental income minimize the costs associated with home ownership, but the money left over after all expenses are paid also ends up in your wallet.

• Living in the house: Maybe you don’t want to sell or rent the house, in which case you may choose to live in it. Your current living situation may be temporary, or you may be considering purchasing a home in the near future. If the house is livable or you even have money to spend on some improvements, it might make more financial sense to live in your inherited home rather than buying a home.

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Advantages and disadvantages of selling and renting

Here are some important pros and cons to consider before making the decision to sell or rent your inherited home, according to GOBankingRates and All County:

Sell

• Per

  • You make a profit when you sell the house.

  • You can use the profits from selling your home to pay off debt, save extra money, or make smart investments.

  • You don’t have to worry about the ongoing financial obligations that come with being a homeowner.

• Disadvantages

  • You may have an emotional attachment to this home.

  • If you inherit the property, it may be subject to capital gains tax. This depends on where you live and how much the house is worth.

  • You could end up in probate court, where the deceased’s will will be confirmed and their assets will be properly distributed. If a home is part of the will, you may not be able to sell it until the legal process is complete, which can sometimes take a long time.

Rent it

• Per

  • You make a profit when you sell the house.

  • You can use the profits from selling your home to pay off debt, save extra money, or make smart investments.

  • You don’t have to worry about the ongoing financial obligations that come with being a homeowner.

• Disadvantages

  • You must assume the responsibilities of a landlord.

  • You will have to pay ongoing property taxes and building insurance and, if necessary, spend money on maintenance.

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This article originally appeared on GOBankingRates.com: If you inherit a home, is it financially wiser to sell or rent it?