Traditionally, it’s the pride of the old to leave an inheritance for their loved ones and the joy of the younger ones to receive an inheritance from their parents. They are leaving their legacy to the next generation.
An inheritance is a gift, and all gifts are good, right? Not always. There are times when an inheritance gives you more headache than peace. Times when it may cost you more to have the inheritance than not to.
If you plan to leave your children an inheritance (or you know your parents are considering leaving an inheritance), you may want to reconsider these assets.
1. Assets with No or Insufficient Insurance
Receiving a significant asset is wonderful, and many people would be delighted to be the new owners of the little house on the hill (or wherever it might be). However, if the property is damaged and there is no insurance coverage, there may be significant financial consequences. The replacement or repair expenses, legal fees, and possible loss of income or property value can be debilitating, taking the benefits out of the inheritance.
2. Digital Assets
There’s a lot of intangible wealth today stored up online in cryptocurrencies and other forms of digital assets. Unlike houses and bank accounts, digital assets are trickier to inherit, especially if the beneficiary doesn’t have sufficient knowledge, hasn’t shared their information with anyone else, or if the digital asses or the benefactor forgets their passwords. Without the right knowledge, accessing these assets can become a total nightmare.
3. Timeshares
Lovers of traveling who signed up for vacation ownership may want to transfer these timeshares to their loved ones as an inheritance. While this is a sweet gesture, timeshares come with their fair share of inconveniences—they frequently have restricted flexibility and expensive maintenance costs.
The beneficiary may also not be fond of traveling, or they may not exactly fancy your choice of resort.
4. High-Maintenance Pets
Owning a pet is a personal choice; not everyone fancies being a pet parent. While inheriting a chinchilla may seem sweet, few people have the time, patience, or know-how to care for a high-maintenance pet. Exotic pets or animals with special needs can be costly and time-consuming.
5. Artwork with No Authentication
Some people love art, others don’t really care for large pieces of canvas with pictures on them. While some artwork may be worth money, their value may be difficult to establish if they are unauthenticated.
6. Neglected Property
Property is at the top of the list of frequently inherited things. Inheriting a good and highly valued property is an inheritance jackpot, but that jackpot becomes a pot of coal if the property is in disrepair and needs extensive repairs. The cost of renovations and repairs is frequently very high for neglected houses. The price of repairing structural problems, updating systems, and improving appearances rises rapidly if proper maintenance is neglected.
7. Collections with No Market
Collectibles are only as valuable as their demand in the market. Inheriting a collection that no one thinks has value leaves you with old things you can’t dispose of. Finding a buyer for old postage stamps or things that have lost their attraction in the market can be difficult. Changes in customer preferences and interests may make some collections less appealing or even out of style.
8. Assets Entangled in Legal Disputes
Legal disputes are like gangrene on a property; they keep getting worse, and you may lose it altogether if it’s not resolved. Inherited assets entangled in litigation require a large investment of time and money to settle, which leaves people anxious and stressed.
9. Non-liquid Assets
One would be happy to get an investment that’s easy to dispose of when we need money. Inheriting an asset that’s difficult to sell quickly can tie up funds, and the process of trying to liquefy such an asset is also stressful. Examples include houses, cars, land, and jewelry.
10. Outdated Technology
Because of their age and decreased market demand, outdated technology and equipment sometimes struggle to create meaningful resale value. An old fax machine or typewriter may be a good living room display, but you may not get any financial benefit from it.
11. Storage Units
A storage unit full of valuables or easy-to-sell stuff is a fantastic inheritance (if you have the time to sort through it, that is). However, storage full of junk that requires time to sort is a stressful inheritance. It might all end up at the local dump or thrift store it it gets too overwhelming.
12. Guns
Depending on the laws of where you live and your personal preferences, inheriting a gun can be very conflicting. People feel differently about firearms, and not everyone is comfortable keeping one, especially if they are opposed to gun ownership or don’t have a safe setup up at home, such as a secure safe.
Inheritance goes beyond simply transferring assets from one person to another. Certain assets might have many responsibilities and difficulties, from debt to legal issues. When negotiating the complexity of inherited assets, an individual should carefully consider the potential consequences and seek expert help to minimize risks and maximize prospects for financial well-being.
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I’m a Language and Literary Studies (Honors) graduate with 11 years of experience in magazine and blog writing and content creation. I’m passionate about storytelling for change and believe in the power of words to make a difference. My writing is thought-provoking, accessible, and engaging, focusing on the Psychology of human behavior, complex social issues, personal experiences, and the latest trends. I’m a wife and a Mom of three.
