8 of The Worst Things You Can Inherit (Or Leave for Loved Ones)

Most people assume any inheritance is a financial win. Free money is exciting. Who doesn't want a lucky break or a chance to build real wealth?

But a surprising number of inheritances end up costing heirs money, time, legal fees, not to mention years of family conflict.

Below are some of the worst things you can inherit or leave behind.

Condo timeshares

Timeshares show up on just about every "worst assets to inherit" listicle and for good reason. They come with annual maintenance fees, contracts that can last decades, and almost no resale market.

Experts note that heirs can disclaim a timeshare, but only if they haven't used it and follow strict written procedures during probate.

Many families simply walk away because the costs outweigh the memories. If you're thinking about leaving one behind, talk with heirs early or sell it while you're alive.

Family business

Owning a family business and inheriting one are completely different experiences. Without a formal succession plan, a business can lose value fast or collapse altogether.

Businesses create tension among siblings, too. Heirs who work in the business may want to reinvest profits, while passive heirs want to monetize.

Experts recommend planning the sale while the owner is alive or creating buy-sell agreements funded by insurance to avoid a post-inheritance blow-up.

Traditional IRAs

A traditional IRA may feel like a thoughtful gift, but heirs may inherit a tax problem instead of a windfall.

The IRS treats inherited traditional IRA withdrawals as taxable income, and most heirs must empty the account within 10 years. That can push them into higher tax brackets fast.

A Roth IRA, by contrast, is one of the best things to inherit because withdrawals are usually tax-free.

Collectibles

Some collectibles sound fun or even glamorous, such as artwork, coins, books, and instruments, but these are some of the trickiest assets to inherit.

They require specialized valuations, can be overlooked or lost if hidden, and may be worth far less (or far more!) than families assume. Some heirs report nearly tossing out valuables or being misled by dealers.

If you own collectibles, document what they are and where they are, and provide reputable appraisers your heirs can trust.

Cabins and vacation homes

Vacation homes can turn siblings into strangers.

Fights often erupt after parents die, notably about usage schedules, repair costs, buyouts, or whether to sell. Even if everyone gets along, vacation homes come with big costs: mortgages, taxes, insurance, and maintenance.

Experts recommend written co-tenancy agreements and setting aside liquid assets to cover upkeep, so no one has to pay out of pocket.

Heirlooms

Heirlooms aren't just "stuff." They carry memories and emotional landmines.

Personal items often cause more conflict than cash because they're hard to divide and easy to overvalue. Jewelry, antiques, and personal collections may be worth far less than expected but still cause fights.

A simple solution: leave a letter of intent or your written instructions (a personal property memorandum) that spells out who gets what. It's not always legally binding, but it can dramatically reduce arguments.

The will

While not an inheritable asset like a property or bank account, it often plays a central role in the inheritance process.

Anything left to heirs through a will must go through probate, a slow, sometimes expensive legal process. The process can tie up assets for months if not years, creating unnecessary stress and conflict.

To avoid probate, many people use transfer-on-death designations or trusts so those assets skip probate entirely.

Firearms

Guns create legal problems if state laws require permits or registration, and from state to state, those rules vary dramatically.

In some cases, executors may be permitted to possess firearms only temporarily, and certain unregistered weapons cannot be passed down at all. Police may even need to store firearms during probate.

If you want heirs to inherit guns, plan early and involve a dealer or attorney familiar with firearm transfer laws.

Bottom line

Some inheritances enrich lives. Others drain bank accounts, inflate tax bills, or create long-lasting family fractures. The best way to help loved ones stay financially fit is to leave behind assets that are simple, clear, and easy to transfer, not expensive emotional puzzles they have to decode while grieving.

For older adults navigating retirement and family planning, staying informed about benefits for seniors can also lighten the financial load for everyone involved.

You May Also Like

$200 Bonus + Up to 5% Cash Back

Earn a $200 bonus after spending $500 on purchases in your first 3 months from account opening. Member FDIC

SPONSORED

7 Ways To Get Money Without Getting A Second Job

By FinanceBuzz Editors

How To Save Money on Car Insurance: 12 Ways to Lower Rates

By Elyssa Kirkham

10 Things Seniors Born Between 1941-1969 Could Take Advantage Of

By FinanceBuzz Editors

19 Dumbest Things Smart People Waste Money On

By Team FBZ

7 Moves If You Want to Stop Living Paycheck to Paycheck

By FinanceBuzz Editors

7 Clever Ways to Crush Your Debt

By FinanceBuzz Editors

Up To 5% Cash Back

Discover it^® Cash Back

Benefits Card Details

• Intro APR on purchases and balance transfers
• $0 annual fee
• Apply Now

• Get a 0% intro APR for 15 months on purchases and balance transfers; balance transfer fee applies. Then 17.49% to 26.49% Standard Variable Purchase APR applies, based on credit worthiness
• INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300
• Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases
• Redeem cash back for any amount. No annual fee
• Terms and conditions apply

4.7

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Apply Now

on Issuer's secure website

Rates and fees

Read Card Review

Intro Offer

INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300

Annual Fee

$0

+ -

Why we like it

• The Discover it^® Cash Back is ideal for anyone who loves flexible rewards options.

• Cardholders can redeem their cash back for any amount.

• Earn 5% cash back on rotating bonus categories up to the quarterly maximum when you activate, along with 1% cash back on all purchases. Categories may include places like gas stations, grocery stores, restaurants, and more.

• Apply Now

---

Subscribe Today

Learn how to make an extra $200

Get vetted side hustles and proven ways to earn extra cash sent to your inbox.

or

Subscribe Now →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms