![]() The rules vary significantly depending on your state of residence and the type of firearm.įor example, in New York, when someone dies, their executor can possess their guns for up to 15 days without incurring criminal liability, a very short window, Carbone said. They aren’t the kind of property you can just hand over to another person without, in certain cases, the proper registration or permit. Guns can present considerable problems as inheritances. If you do have any valuable collectibles, be sure to let your heirs know where they are, what they’re worth (appraisals are best, but a rough estimate will do) and suggest dealers they should work with after you’re gone. The dealer said the violin itself was worthless, but the bow? $20,000.” I took a particularly impressive one in thinking it might have value. “A client who passed away was a musician and had a collection of violins. Romero shared a story where he got caught off-guard. Instead, they’ll need to go to a dealer and if they meet the wrong person, they can be taken for a ride. It’s not like a bank or brokerage account where your heirs can just see the balance. “If you’ve sewn diamonds in the couch cushions, you better let your heirs know so they don’t toss them out in a yard sale,” said Carbone.Īnother problem with collectibles is that they’re tougher to value. First, there’s a much higher chance that your heirs could overlook or lose these valuable assets, especially if you’ve hidden them. Still, there are some substantial risks to leaving valuable collectibles as an inheritance. When you die, your heirs receive a step-up-in-basis, meaning when they sell they receive tax-free what the collectible was worth on the day you die. The capital gains tax rate on collectibles goes up to 28%, significantly higher than the maximum 20% long-term gains rate on other investments. Another advantage of leaving collectibles as an inheritance is it can help with taxes. Whether it’s gold coins, a rare stamp collection or a fine piece of artwork, there’s something special about seeing your wealth in a beautiful physical form and then imagining handing it off to your loved ones so they can enjoy it too. “Most companies will not take legal action against elderly customers if the timeshare is paid off, and most elderly customers won’t be concerned about damage to their credit rating.” ![]() If you simply decide to abandon your timeshare, the company might send letters threatening legal action, but in Carbone’s experience, they usually don’t follow through. “I tell clients to sell it for basically nothing if they have to, just to get rid of it.” Eric Reich, a Kiplinger contributor and president of Reich Asset Management, noted that there are also companies that resell timeshares. Don’t try to hold out for much, advised T. If not, you could also try to sell the contract to someone else or work with a timeshare exit company that specializes in getting people out of these arrangements. Some will simply buy you out and take it back. How difficult this will be depends on the company. If your family has decided they don’t want to inherit the timeshare and you no longer want it, you can try to get rid of it while you’re alive. If your heirs are on the fence, Carbone warned, they must be very cautious not to use the property after you’re gone, such as a last memorial trip, because this could prevent an effective disclaimer or count as taking over the timeshare contract. Everything else gets a little more complicated. He said brokerage accounts are good too because they’re so easy to value and divide. “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. A professional can also help you start adjust your assets to those that are more effective to leave. They can get to know your assets and, in doing so, identify what might be an issue.”Ĭarbone 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. “For family harmony and efficiency, start your planning early with an attorney or other estate plan expert. ![]() Carbone, trusts and estates partner at Farrell Fritz in New York. “A lot of people leave estate planning to the last minute, or they don’t get to it,” said Neil V. You can prevent issues from happening though with thoughtful estate planning. Sometimes, let’s face it, your kids just don’t want your stuff. Others can cause arguments between family members, or may have hidden costs. The fact is, some assets are better than others to leave behind.
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