The Worst Assets to Inherit: Avoid Adding to Their Grief

July 17, 2025

As the Great Wealth Transfer begins to reshape the financial landscape in the United States, trillions of dollars are expected to move from older generations to younger heirs over the next few decades. But just because a windfall is coming doesn’t mean it will be welcome. In fact, some inheritances may bring more stress than security.

Recent surveys show that expectations around inheritances are high, especially among younger Americans. A 2024 Empower study found that 14% of all U.S. adults anticipate receiving an inheritance, with that number rising to 27% among Gen Z and younger Millennials. In contrast, only 7% of those 55 and older say they expect to inherit money. Another survey from USA Today reported that two-thirds of Americans aged 18–44 either have received or expect to receive an inheritance — with an average expected value of $320,000.

That figure may sound exciting, but what’s often overlooked is how that wealth is passed down. Some assets are clean and easy to transfer; others come with legal complications, tax headaches, or emotional baggage. The form your inheritance takes can dramatically impact whether it's a blessing or a burden.

Estate planning professionals say the key to a successful wealth transfer is knowing what to leave — and what to avoid. Michael Romero, president of Argent Trust Oklahoma, says that when it comes to inheritances, “the best asset to leave behind is cash.” Brokerage accounts come next on the list, as they’re relatively easy to divide and don’t usually require guesswork. Unfortunately, many people leave behind assets that are far less straightforward.

What kinds of inheritances tend to cause problems?

Below are seven of the most problematic assets to leave behind — and why it may be wise to rethink your estate planning strategy if they’re part of your portfolio.

1. Timeshares

What seems like a lifetime of relaxing getaways can become a lifelong obligation for your heirs. Timeshare contracts often include annual maintenance fees, rising costs, and limited flexibility — and they’re notoriously difficult to sell. Your children may not want them at all, and using the timeshare after your death could unintentionally bind them to the contract. Instead of gifting a timeshare, consider formally disclaiming it from your estate or working with a legitimate exit company to offload it during your lifetime.

2. Collectibles

From vintage guitars to rare coins, collectibles can be tricky assets to inherit. They're often hard to value, difficult to sell, and highly subjective in sentimental or market worth. While collectibles can receive a step-up in basis (helpful for taxes), many heirs have no idea what the items are worth — or even where they are stored. To prevent confusion or losses, catalog these items, get appraisals, and communicate your intentions clearly with your beneficiaries.

3. Firearms

Passing down guns involves a tangle of state and federal regulations. In some jurisdictions, heirs have just days to transfer or store the firearms legally — a timeline that can be impossible to meet during probate. Unregistered weapons or restricted items like fully automatic rifles may not be transferable at all. Estate planners suggest setting up permits and documentation early and involving a licensed dealer to manage the transition.

4. Small Businesses

A family business might represent decades of hard work — but it’s not always a good inheritance. If you haven’t created a succession plan, your death could throw the business into chaos. Experts recommend that owners begin exit planning while still active in the business, even if they hope to pass it down. If a sale is more realistic, initiating it before death can protect the business's value and reduce family tension.

5. Vacation Properties

Inheriting a beach house might sound idyllic, but multiple heirs and ongoing costs can quickly turn it into a source of conflict. Disputes over usage, repairs, or buyouts are common, and heirs may not be able (or willing) to cover the property's expenses. If your heirs express interest in keeping the property, consider setting aside liquid funds to cover maintenance and taxes. Otherwise, selling during your lifetime may be the more peaceful route.

6. Sentimental Physical Property

Heirlooms, jewelry, and furniture often come with strong emotions—and differing opinions. Dividing these assets can lead to rifts among siblings or extended family. Be specific in your estate documents about who gets what and consider talking through these choices with your heirs in advance. If possible, sell off items with little sentimental value while you’re still alive and gift or designate the rest clearly.

7. Cryptocurrency

Crypto assets are notoriously easy to lose — literally. Without the right access codes or wallet instructions, your digital holdings could disappear forever. Even with access, your heirs may be unfamiliar with the technology, uncertain about tax implications, or simply uninterested. If crypto is part of your estate, document your holdings thoroughly and include clear, secure instructions for retrieval and liquidation.

Bottom Line

Passing on your wealth is about more than just numbers — it’s about preparing your heirs for the responsibility that comes with it. That means having conversations about what you own, making your wishes clear, and working with estate planning professionals to simplify the process.

If you’re unsure about how your estate will impact your loved ones, now’s the time to review your plan. Whether it’s selling burdensome assets while you're alive or crafting a detailed will and letter of intent, thoughtful planning can help ensure your legacy is a gift — not a burden.

Sources:

https://www.kiplinger.com/retirement/inheritance/worst-assets-to-inherit

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.