Some assets can be challenging to inherit.

Estate planning is necessary for distributing property to those you want to inherit.

Inventorying assets is an essential step in this process.

If you do not have an accurate account of what you own, you cannot plan accordingly.

Once you have a property list, you must decide what assets would be better sold and which would be better inherited.

Some types of property can be burdensome for heirs to inherit.

Assets like timeshares can create more trouble than value for heirs.

Do Kids Want the Timeshare?

Vacation timeshares can be a lot of fun for you and your spouse.

For your adult children, these can quickly become just another worry on their plates.

Timeshares often bring challenges with contracts and ongoing fees.

The costs of keeping a timeshare may be more of a financial burden than an opportunity for rest.

You likely hear the same advertised services I do regarding "getting out of" a timeshare contract.

According to a Kiplinger article titled "Six of the Worst Assets to Inherit," parents should talk with their adult children or other family members about whether inheriting a timeshare is something they want.

If nobody desires the timeshare, it is best to make plans to sell it before you die.

Are Your Collectibles Valuable?

People treasure their collections.

Each item holds meaning and personal value.

Although collections of stamps, art, or other items can be worth a lot of money, they require valuation by an experienced individual.

While leaving your collections to heirs could be profitable for them, they may overlook and undervalue the pieces in the hustle and bustle of settling your estate when you die.

If you choose to bequeath your collections, you should get them appraised in advance and provide detailed instructions on their location and how to sell them if the time comes.

How to Handle Firearms in Your Estate Plan

Firearms can be more complicated assets to inherit.

Why?

States have varying rules regarding the transfer of a firearm after the death of the owner.

In some instances, heirs may have a short timeframe to handle the transfer to avoid legal trouble.

You should talk with an experienced estate planning attorney in your state about the proper steps and permits your heir would need to inherit your firearm legally.

The use of a gun trust or engaging the services of a licensed gun dealer may help with this transition.

Preparing a Business for Succession

Those who built and own their businesses have poured blood, sweat, and tears into their work.

Whether you want to keep the business in the family or sell it and distribute the proceeds, having a clear succession plan is critical.

Without a plan in place, your family could become entangled in legal disputes or suffer financial hardship.

Work with an experienced estate planning attorney to protect this significant aspect of your legacy.

Will Your Vacation Property Cause Family Fights?

Although owning a vacation home is a dream for many families, it can quickly trigger an estate planning nightmare.

To avoid conflicts among your heirs around maintenance, costs, and property usage, you should include instructions in your estate plan for handling the expenses associated with the home or managing its sale.

Is Physical Property Worth the Trouble?

Family heirlooms or jewelry can hold sentimental value and family history.

Families can quickly dissolve into disagreements when there are emotional connections to such pieces.

To minimize fights over such items, you can gift them to heirs while alive or outline who will receive each item when you die.

Plan Your Estate and Distribution of Assets with Care

Some assets are not worth the trouble of leaving to the next generation.

Estate planning involves assessing what you own and anticipating challenges associated with distributing these assets to heirs.

An experienced estate planning attorney can help you navigate the complexities of your state laws as well as your unique family circumstances to create a plan to meet your needs.

You can request a consultation with Harvest Law KC at our Overland Park estate planning office.

What are Key Takeaways for Challenging Assets?

Because some assets can be more trouble to inherit than they are worth, forethought is essential to leaving an inheritance.

Comprehensive estate planning is key to avoiding family conflict over collectibles or sentimental items, legal issues related to firearms or business, and undue stress for heirs.

Start your planning now to prevent certain assets from triggering issues with inheritance.

This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.

Reference: Kiplinger (Aug. 16, 2024) "Six of the Worst Assets to Inherit"