The Worst Assets To Inherit and How To Address Them Before It’s Too Late
The Worst Assets To Inherit and How To Address Them Before It’s Too Late
David Nadelle Thu, January 26,
The sudden and lengthy appearance of the coronavirus pandemic delivered many lessons — among them, that life can be taken away from even the healthiest individuals in the blink of an eye. Planning appropriate asset allocation before you die is an absolutely necessity for every adult.
Having a legally binding will in place lets you decide who will inherit your financial assets and possessions when you pass away. However, if you die without a will, the state in which you lived will make these very important decisions for you.
Financial assets are usually more straightforward, but as AARP noted, “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.” Cash may be the best asset to leave behind, according to some experts.
You always want to do right by the deceased, but sometimes receiving another’s possessions when they pass can be more of an inconvenience than good fortune. Here are five of the worst assets to inherit and how to address them before it’s too late.
Businesses
While it is a reasonable and kind act to pass on your hard-earned business to your children, not every child wants to “take over the family business.” A business requires a succession plan so there are no unresolved expectations and operating details. Barring passing it over to a family member, business owners will need to arrange a buy-out by any existing partners — or a sale to a prospective buyer — while they are still living and working.
Timeshares
The one good thing about inheriting a timeshare is that it is already (partially) paid for. However, inheriting a timeshare means taking over a shared vacation resort, condo or property that won’t increase in value, that comes with annual fees and maintenance costs — and that includes strict regulations and flexibility concerns. Timeshares are often more of a headache than a relaxing adventure away from home, so those who are considering passing them down to another should find out first if the timeshare is even wanted and if not, make arrangements to disclaim it.
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