Leaving behind assets for your loved ones is a good way to ensure their future. Not everything you own, however, is a valuable asset to inherit. There are some things that are more trouble than they are worth for your successors.
It might be items that cost too much to maintain, investments that are difficult to manage or belongings that don’t hold much value; be smart about what you leave behind.
Avoiding some assets saves your family stress, time and unexpected expenses. Here are 10 things you should reconsider when planning your legacy.
Timeshares
Timeshares can be an excellent purchase, but they become a burden to future generations. Such properties typically have ongoing fees & expenses, which become the responsibility of the heirs.
For the most part, they’re not really worth much on a resale basis; so it’s hard for your family to reap any advantage from them. Instead of leaving a timeshare behind, sell it beforehand or give it to someone else who truly wants it.
Outdated Real Estate
If you leave behind property that’s shabby, outdated or in an undesirable neighborhood, your descendants may find themselves in financial difficulty. They could end up paying high repair bills, paying property taxes, while not being able to sell it.
Real estate needs to be in good shape before you give it away or you can consider selling it. That way, your successors will have wealth, not troubles.
Collectibles Without Clear Value
Your collection of stamps, coins or antiques may not be valuable as you think. Without proper documentation and appraisals, your successors might not be able to sell or manage the collection.
Sometimes, these will only occupy space and cause mishaps. If you have valuable objects, sell them or hire a professional to estimate the value.
Unmanaged Rental Properties
Rental properties may sound like an excellent investment, but they take time and energy to run. If your inheritors aren’t up to taking care of tenants, repairs and taxes, the property will be a nuisance.
You might want to discuss this obligation with your family first. If nobody wants to run it, then selling the house may be a better option.
Physical Cash Hidden at Home
Cash hidden in your house may be handy, but it might cause problems after you are dead. The cash might never be recovered if your descendants don’t know where to look.
If they do discover it, then large sums of money could face legal or tax consequences. Better save your money in a bank account or somewhere that your descendants can access.
Vehicles You Don’t Maintain
Leaving behind an unused or old car sounds generous but can quickly prove a pain in the neck.
The heirs will have to pay for repairs, insurance and even registration. If the car is in bad shape or your descendants don’t want it – it may be more convenient to sell than give it away.
Debt-Heavy Properties
If you leave behind a property that still has mortgages or liens on it, it can be costly for your heirs. They may have to settle the debt or sell the home to evade foreclosure.
If you don’t want that, pay off debts on your property or work out repayment with your successors before you sell.
Outdated Technology
Old computers, phones or other electronics may seem useful, but in a short time, they become more trouble than they’re worth.
Your descendants might have a hard time figuring out passwords, information or even what to do with the items. Rather than leaving technology behind, recycle or update devices on a regular basis.
Irregular Investments
Cryptocurrencies, speculative stocks or other high-risk investments may confuse the inheritors.
Your family could lose money or struggle to access the funds if not given proper instruction. Give them explicit directions or consult with a financial professional to make investing easier.
Unnecessary Personal Belongings
You naturally accumulate items over the years, but leaving a house filled with belongings is overwhelming to your heirs.
It takes time and effort to go through the nostalgic and functional things, and they may not even want most of what remains. To make things easier, declutter while you’re still alive and leave behind only what’s important.
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