I have a nice place in the country with a shop that I plan to use even more once I'm retired. As such, I don't care to downsize in retirement, or at least not until I'm not able to mess around with things in my shop/property. Similar to the OP, we will have a significant pile of equity in our homestead to pass on or find a way to access.
I agree with those who say find a way to to do what you want to do while you can. Unless your kids have a disability, don't take earning what they want away from them. Otherwise their life becomes the biggest participation trophy of all.
Depending on how a persons retirement is set up, an easier way to access a portion of the equity might be a HELOC or cash out refinance. I haven't carefully examined a RM, so don't know the fees associated with it, but it's worth a comparative analysis to see which route ultimately costs less in fees and interest. Even if it's not the best financial move, those on a structured payment system like an anuity/pension plan that have a higher monthly payout might find it advantageous to pay monthly for a large sum up front with which to pay for a few dreams.
