“Inheriting Money or Property: 3 Things High School Students Should Think About”

– Beneficiaries are not legally required to accept an inheritance.
– Seeking legal and tax advice before deciding whether to accept or reject an inheritance is recommended.
– Testators/trustors have the freedom to divide their assets however they see fit and are not obligated to leave them equally to their children. 1. If the inheritance includes a big ticket item with a mortgage or loan, the inheritor may be responsible for servicing the debt and must figure out if it’s affordable.
2. Large items like boats or RVs with no debt obligations could pose a storage problem for the inheritor, especially if living in a small space.
3. Income-producing assets from the inheritance, such as real estate, securities, and retirement accounts, can increase taxable income and may affect the inheritor’s overall financial situation.

https://www.henlaw.com/news-insights/3-things-to-consider-before-receiving-an-inheritance/