You’d be surprised at how many inheritances turn into disasters, costing money and time and creating family conflicts. A recent article from MSN, “8 of the worst things you can inherit (or leave for loved ones)” explains why some of your prized possessions could create problems for descendants. A New Mexico Estate Planning Attorney can help.
Condo timeshares come in as the number one worst asset. This “gift” comes with annual maintenance fees, decades-long contracts and perhaps worst of all, almost zero resale value. An heir may disclaim a timeshare, but strict probate procedures must be followed. You can’t use the timeshare once and then decide you want to disclaim it. For many families, the best solution is to walk away. If you own a timeshare, talk with heirs or sell it while you’re still living.
Family business without a succession plan. Without a plan in place, businesses can create big problems between siblings. Heirs who work in the business may want to keep the business going, while non-working heirs may want to sell the business. Create a succession plan, including buy-sell agreements, to prevent post-inheritance family fractures.
A traditional IRA can have long-term tax consequences. Inherited traditional IRA withdrawals are treated as taxable income. Most heirs are also required to empty accounts within ten years. The Roth IRA is one of the best things to inherit because withdrawals are usually tax-free.
Collectibles are some of the trickiest assets to inherit. Collectibles require specialized valuations, can be lost if they are hidden and are almost always worth less than families assume. Heirs report being misled by dealers or having their collections discarded entirely. Document collectibles, including professional valuations and information about their provenance, or sell them while you are living.
Family vacation homes can turn siblings into strangers. Sharing a family vacation home can turn sour without proper estate planning. Usage schedules, repair costs, buyouts, or wishes to sell the property can undermine even the closest siblings. Create a plan with co-tenancy agreements and leave liquid assets to cover upkeep if possible, so heirs aren’t paying out of pocket.
Sentimental possessions are emotional landmines. Personal items can cause more conflict than cash because they usually can’t be divided and are easy to overvalue. Leave a letter of intent with written instructions (a personal property memo) specifying who will receive which items.
A will plays a central role in the estate. Anything left in a will goes through probate, which can tie up assets for months or even years. We had one client come to us in their tenth year of probate. Many people use Transfer-On-Death designations or trusts to remove assets from the estate.
Firearms. Guns create legal problems for heirs if the state laws require permits or registration. New Mexico does not require those, although concealed handgun carry licenses are required to carry a concealed firearm. These rules vary dramatically from state to state. In some states, executors may possess firearms only temporarily, and some unregistered weapons may not be passed down. If your estate includes guns, plan early and work with an estate planning attorney familiar with firearm transfer laws.
Some inheritances enrich lives and strengthen family bonds. Others inflate tax bills, drain bank accounts and strain family relationships. The best solution is an estate plan created with an experienced estate planning attorney.
Learn more by contacting Rio Grande Estate Planning, LLC. Our offices in Las Cruces and Albuquerque are ready to serve you.
Reference: MSN (Dec. 15, 2025) “8 of the worst things you can inherit (or leave for loved ones)”