Talk to a CPA. One question the CPA will ask is how long has it been a rental. to determine the best use of the asset. Two thoughts: time value of money of the cash if you sold immediately - taking 500K today and wisely investing it (diversifying into other investment vehicles) is likely to create a larger asset than what your kids might get 20 years down the line when holding the house. (2) Could sell it as an investment (doing a 1031 exchange) and exchange the 500K investment into a fourplex or other like kind real estate investment... keep doing 1031 exchanges to build ywealth for your estate. If done wisely, you can give your children much more in total value than just the value of your current home.