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4 Assets Your Kids May Not Want to Inherit

From a family business to property, here are some assets you may regret handing down

spinner image person filling out a will determining assets and inheritance
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Leaving your children an inheritance is a blessing, but it can also be a curse, particularly if the items you’re handing down require work, time, money or space.  Consider complicated assets like an antique car or a digital wallet full of cryptocurrency. Sure, your kids will appreciate these assets, but if the possession you’re giving away is too complicated to comprehend or hard to value, it could cause stress. 

“When it’s an asset people don’t understand, it’s very difficult,” says Jean-Luc Bourdon, founder and wealth adviser at Lucent Wealth Planning. He once had a client who inherited a unique car but didn’t know what to sell it for or whom to trust. Instead of unlocking the value, she held on to the vehicle.  ​

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Even IRAs and 401(k)s can be problematic, since they aren’t easy to transfer to the next generation or your children hold on to them for sentimental value. The same goes for expensive furniture, ceramics and collectibles that take up space or are hard to get rid of.

“The most common assets [kids don’t want] have some type of obligation attached to them to maintain value,” says Joseph McNair, a certified financial planner at WA Asset Management. “The closer to cash the assets are, the less cumbersome they are.”

Most heirs aren’t going to turn down inheritances that can make them money, but there are a handful of possessions they may not want, including these four.

1. Property

Vacation homes, farmland and other real estate can be a great asset to leave your children, as they can appreciate in value. But they can also cause untold headaches and hassles if there’s a lot of maintenance and expenses involved. Strife is another issue if the property is being split among family members. “I’ve seen a lot of siblings get along well before their parents pass, and then the fighting starts,” says Molly Ward, a financial adviser at Equitable Advisors. “One family had a gorgeous property, but never in a million years would the kids want it.” You also have to pay expenses, such as taxes, utilities and upkeep, and if you can’t sell the place, it could become a drain on your finances and time.​

2. A family business

You’ve spent decades building your business, so it’s only natural to want to pass it down to your children. That’s great if they want it. If not, your legacy is at risk. “The company can be worth millions and lose millions in a matter of months if proper planning hasn’t been done,” Ward warns. So while you are still running the operation, you should decide whom you would like to eventually replace you. If your children aren’t interested, you’ll have the time to look for a successor or plan for a sale. ​

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3. Time-shares

Time-shares seem like a dream come true: You have a vacation spot and don’t have to spend a fortune. Some even offer you choice in where you vacation. But often time-shares can be a drain on your mental health and bank account. There’s an annual maintenance fee, utilities and taxes, which can quickly add up. And getting out of a time-share can be difficult and time-consuming.

4. Storage unit

Unless there’s cash or jewelry stashed in it, a storage unit full of stuff can be a burden. Your loved one is left to go through and clean out the space and figure out what to do with all your belongings or take on the added expense of maintaining the unit.

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