The Seven Worst Assets to Leave Your Kids or Grandkids

Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.

Photo of a paper will cut in half with some scissors resting on top of it.
(Image credit: Getty Images)

The total value of an inheritance isn't just a dollar figure — what’s actually in an estate plan can matter significantly. Thanks to the Great Wealth Transfer, trillions of dollars will transfer from one generation to the next in the decades ahead, but not everyone will see their inheritance as a help; for some, it may be a headache. 

Roughly 15% of American adults expect to receive an inheritance in the next decade, according to the New York Life Wealth Watch survey, but let's face it, some assets are better than others to leave behind. Did you know your home could be a terrible inheritance for your kids? Nearly 70% (68%) of homeowners don't know that.

Certain assets can cause arguments between family members or may have hidden costs. And sometimes, let’s face it, your kids just don’t want your stuff. With thoughtful estate planning, however, you can prevent these issues from happening. 

“A lot of people leave estate planning to the last minute, or they don’t get to it,” said Neil V. Carbone, trusts and estates partner at Farrell Fritz in New York. “For family harmony and efficiency, start your planning early with an attorney or other estate plan expert. They can get to know your assets and, in doing so, identify what might be an issue.”

Carbone finds that children and other young family members are more likely to respect a parent’s wishes if they hear them in person, even if it’s something they don’t like, versus finding out from a document when they’re also grieving. A professional can also help you start adjusting your assets to those that are more effective to leave.

“In my experience, the best asset to leave behind: cash,” said Michael Romero, vice president and relationship manager at Argent Financial Group, a full-service wealth and trust management firm. He said brokerage accounts are good too because they’re so easy to value and divide. Everything else gets a little more complicated.

Here are seven of the worst assets to inherit (as opposed to some of the best assets to inherit) and what you can do to help manage them before you are gone. Read on for advice on how to make sure your estate doesn't add to your heirs' grief and what to do if you inherit something you don't want.

David Rodeck
Contributing Writer, Kiplinger's Retirement Report

David is a financial freelance writer based out of Delaware. He specializes in making investing, insurance and retirement planning understandable.  He has been published in Kiplinger, Forbes and U.S. News, and also writes for clients like American Express, LendingTree and Prudential. He is currently Treasurer for the Financial Writers Society.

Before becoming a writer, David was an insurance salesman and registered representative for New York Life. During that time, he passed both the Series 6 and CFP exams. David graduated from McGill University with degrees in Economics and Finance where he was also captain of the varsity tennis team.

With contributions from