Inheriting grandma’s diamond ring or dad’s vintage Harley-Davidson would invoke cherished memories and be meaningful, but there are assets you don’t want to inherit because of their potential to cause family feuds and financial hardship. A great example of this is a timeshare. An asset like a timeshare can cause disagreements between family members when one heir wants to keep the timeshare and another heir doesn’t. Timesharecontracts are normally difficult to get out of yet when a person dies and the heirs unanimously agree they don’t want the timeshare, they can disclaim the inheritance.
If you were to disclaim an inheritance in North Carolina, you would have 9 months after the death of a loved one to have an estate plan attorney draft a letter declaring you do not accept the inheritance. Your attorney would then deliver the document to the executor of the estate, or the court depending on the situation. During that time, you may not receive any benefit from the asset. In the case of a timeshare, you would not be able to use the timeshare because, if you did, your disclaimer may not qualify, and you may be declared the new owner of the asset.
A business owner who dies without a succession plan or a willing family member to take over day-to-day operation of the family business, is leaving a terrible mess behind. It’s better to sell a business when you’re alive and well than it is to leave the asset to heirs who have no interest in carrying on the family legacy. Without a succession plan, when a business owner dies the business will be passed to the nearest relative or the surviving partner depending on the partnership agreement.
When creating an estate plan it’s important to remember, the assets you leave behind can’t be considered a gift if they force loved ones to pay for something they don’t want or can’t afford. Alloy Wealth Management is experienced in estate planning and would be happy to help you ensure your assets are efficiently passed to loved ones. Call 800-689-3935 to schedule an appointment.