Planning for the future is difficult for many reasons, especially the task of determining how to divide wealth and property among heirs and beneficiaries. As you are preparing your estate plan, you may think about the specific loved ones you want to receive certain things, and you may carefully outline your intentions for specific types of assets. While you may see the value and importance in certain types of assets, your loved ones may not feel the same when it is time to settle your estate.
It can be helpful to consider what your Louisiana loved ones may or may not want after your passing. In addition to the potential tax implications of your choices, there is the possibility that receiving certain assets could be costly, complicated or cumbersome for your heirs. There are specific types of property you may want to reconsider passing on.
Reconsider gifting these types of property
You don’t want to inconvenience your heirs or bring preventable complications to their lives. For these reasons, you may want to reconsider passing the following to specific individuals in your estate plan:
- Valuable collectables and collections — Even though these are sometimes beneficial ways to pass wealth, there is the chance an heir may not understand their potential value. They may lose, break or sell the items for less than their worth.
- Timeshares — Timeshare contracts can leave your heirs with the expenses outlined in your contract, and these rates could go up over time. Heirs may have the choice to retain the timeshare or sell it.
- Vacation properties — These assets can leave heirs with tax obligations, maintenance costs and other complications. Ownership of vacation properties can also lead to sharp disputes among family members.
- Guns — Leaving these assets to an heir can be complicated due to strict regulations over personally owned weapons. They may require registration or a permit, and they can pose a safety risk.
- Physical property with sentimental value — Leaving these types of assets to one individual can lead to disputes among family members. They are hard to divide, and there is often a misconception about their true worth.
When making estate plans, it may be most beneficial to consider the potential long-term complications and issues that may arise with certain decisions. While you have the right to decide what will happen to your property, you may want to consider how your choices could impact your loved ones.