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3 things you shouldn’t leave to your kids

On Behalf of | Sep 24, 2021 | Estate Planning |

It’s estimated that there are literally trillions of dollars in wealth that will soon change hands from one generation to the next — and you want to be sure that your assets are among them.

Before you start your estate plans, however, you should probably consider actually divesting yourself of certain holdings. At the very minimum, you may want to make alternate provisions for certain assets instead of passing them directly on.

These assets can be difficult for your heirs to handle

Generally, the easiest, most useful resource you can leave your heirs is pretty simple: Cold, hard cash. Even the family home can be sold and the proceeds divided after your death.

At a minimum, you should probably leave the following items out of your estate:

  1. Your timeshare agreement. If your kids accept a timeshare as part of your bequests, they could be on the hook for the contract for the rest of their lives. Timeshares have to be handled very carefully so that your kids aren’t stuck with a commitment they don’t want.
  2. Your collections. Whether you have an impressive collection of original art or a box of old coins, collections can prove problematic for your heirs. It can be challenging to value a collection, and that makes it difficult for your heirs to know how to divide one fairly. Plus, collections are taxed at a higher rate than other assets, so that could turn your good intentions into a liability.
  3. Your guns. If you’re a firearms enthusiast, you need to carefully consider the logistics of passing them on. If you do decide to pass weapons on, consider using a gun trust to do it.

Estate planning is a complicated venture. The more you know about your options, the better you can lay out your plans in a way that will most benefit you and your heirs.

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