Inheriting assets from a loved one can be a blessing, but sometimes it can also be a burden. While most people think of inheritances as positive windfalls, certain assets can actually cause more trouble than they’re worth. These problematic inheritances can lead to unexpected expenses, legal headaches, and emotional stress during an already difficult time.
Here, I’ll explore 10 assets that you absolutely don’t want to inherit.
Timeshares
Inheriting a timeshare might seem like a great opportunity for free vacations, but it often turns into a financial burden. Timeshares come with ongoing maintenance fees and property taxes that you’ll be responsible for, even if you don’t use the property. These costs can add up quickly and may be difficult to afford. Additionally, timeshares can be notoriously hard to sell or get rid of, leaving you stuck with an unwanted expense.
Underwater Mortgages
An underwater mortgage is when the amount owed on a home is more than its current market value. Inheriting a property with an underwater mortgage can be a significant financial liability. You may be responsible for continuing mortgage payments on a property worth less than the loan. Selling the property often results in a loss, and you might even need to pay money to get rid of it.
Contaminated Land
Inheriting contaminated land, such as a former industrial site or gas station, can be a nightmare. Environmental cleanup costs can be astronomical, often exceeding the value of the property itself. You may be legally responsible for these cleanup costs, even if you didn’t cause the contamination. Additionally, contaminated properties can be difficult or impossible to sell, leaving you with an unwanted, potentially dangerous asset.
Exotic Pets
While inheriting a beloved family pet can be a joy, exotic pets are a different story. Animals like large snakes, primates, or big cats require specialized care, expensive diets, and often, special permits. These pets can live for decades, meaning a long-term commitment. If you’re not prepared or equipped to care for these animals, you may face difficult decisions about their future care or rehoming.
Unfinished Construction Projects
Inheriting an unfinished construction project, whether it’s a half-built home or a partially renovated property, can be a major headache. These projects often come with outstanding bills from contractors or suppliers. Completing the construction can be expensive and time-consuming, especially if you’re unfamiliar with the original plans. Selling an unfinished project can also be challenging, as potential buyers may be wary of taking on someone else’s incomplete work.
Antique Vehicles in Poor Condition
While a classic car in good condition can be valuable, inheriting an antique vehicle in poor condition is often more trouble than it’s worth. Restoration costs for these vehicles can be astronomical, often exceeding the value of the restored car. Storage for a non-functioning vehicle can also be expensive. Additionally, finding parts for very old or rare models can be challenging and costly.
Extensive Collections with Limited Value
Inheriting a large collection, such as stamps, coins, or memorabilia, might seem exciting, but it can be burdensome if the items have limited value. These collections often occupy significant space and may require special storage conditions to prevent deterioration. Selling large collections can be time-consuming and may yield less money than expected. Additionally, you may feel guilty about disposing of something your loved one cherished, even if it’s not valuable or meaningful to you.
Businesses with Significant Debt
Inheriting a business might sound like a great opportunity, but it can quickly become a nightmare if it comes with significant debt. You may become responsible for outstanding loans, unpaid bills, or tax liabilities. Running a business requires time, expertise, and often additional investment. If the business isn’t profitable, you might find yourself pouring money into a failing enterprise.
Hoarder Houses
Inheriting a hoarder’s house can be overwhelming and potentially hazardous. These properties are often filled with accumulated items, making them difficult to navigate or clean. The cleanup process can be emotionally taxing, especially if you’re dealing with a deceased loved one’s possessions. Professional cleaning services for hoarder houses can be costly, often costing tens of thousands. Additionally, these properties may have hidden structural damage or pest infestations due to years of neglect.
Digital Assets with Ongoing Costs
In today’s digital age, you might inherit digital assets like websites, online businesses, or cryptocurrency wallets. While some of these can be valuable, others come with ongoing costs and responsibilities. Websites and online businesses may require regular payments for hosting, domain names, and maintenance. Digital wallets might contain valuable assets, but if you don’t have the necessary passwords or recovery phrases, these digital fortunes could be inaccessible and effectively worthless.
Who Qualifies for Maximum OAS Pension in Canada?
Who Qualifies for Maximum OAS Pension in Canada?
18 Things You Must Do in Canada Before You Die
18 Things You Must Do in Canada Before You Die