News & Trending Money News

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

Some inheritances can quietly drain your time, money, and relationships.

By Josh Koebert , Edited by Laura Hohenstein

Updated Nov. 10, 2026

Add Us On Google

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.

Now Available: The Definitive Guide to Retirement Income

Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years.

That is exactly what The Definitive Guide to Retirement Income helps answer.¹ <p class="">Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. Guides are provided by Fisher Investments. The publisher may be compensated when readers request a guide.</p> It covers what your retirement could actually cost, which income sources are worth using, and the withdrawal math that decides whether the money lasts. It is free today from Fisher Investments. Read More Here ›

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.

Shopping for cheaper auto insurance? Enter your zip code here to get started.

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.

Released: The Definitive Guide to Retirement Income (Sponsor)

Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out. It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan.

That is exactly what The Definitive Guide to Retirement Income helps answer.¹ <p class="">Investing in securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. Guides are provided by Fisher Investments. The publisher may be compensated when readers request a guide.</p> It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn More Here ›

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.

Make Money: 8 things to do if you're barely scraping by financially

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.

More from FinanceBuzz:

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

INTRO OFFER: Receive a $200 statement credit when you spend $500 on purchases in your first 3 months of account opening
UNLIMITED CASHBACK MATCH: 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. Click Apply Now to view important rates and disclosures
Earn 5% cash back on everyday purchases at different places you shop each quarter, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases
Redeem cash back for any amount. Every $1 you earn in cash back is $1 you can redeem
Rewards don't expire for the life of the account
No annual fee and no foreign transaction fee
Lock your card in the Mobile app if it’s misplaced, lost, or stolen
You're covered by $0 Fraud Liability for unauthorized charges

4.7

Apply Now

on Issuer's secure website

Read Card Review

Intro Offer

UNLIMITED CASHBACK MATCH: 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. Click Apply Now to view important rates and disclosures. Plus, receive a $200 statement credit when you spend $500 on purchases in your first 3 months of account opening

Annual Fee

Why we like it