The Inheritance You Don’t Want
I have written previously about inheritances that can cause problems for heirs. A case in point is when an investment property costs more to maintain than its rental or sales value. Basically the inheritance has a negative value. However, if the property is bequeathed equally to siblings (to give a simple example) and one wants to sell or rent; and the other does not, then the inheritance can end up costing each of your heirs a monthly “shortfall” of income.
But there is another issue with inheriting property, specifically land/real estate. If the property has been used for a business involving petrochemicals, this can prove to become a major headache for heirs who inherit the land and decide to sell it. Businesses such as gas stations; vacant lots where chemicals have been stored; even some farmland and dry cleaning stores may have significant costs to clean up the site designated as “toxic” by local or federal standards.
On a grander scale there was a large commercial site that had to remain unleased/vacant until local and federal toxic clean-up guidelines had been taken care of – a wait of several years!
When devising an estate planning strategy, these issues should be discussed and remedies sought before inheritance problems surface.
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