One Of The Worst Assets To Inherit Is Nothing More Than A Hassle

The passing of a loved one can be an unfortunate time filled with grief and stress, but it could also result in inheriting some financial assets. If managed correctly, such as following some basic rules when you inherit a large amount of money, the assets can go a long way to accelerate your own financial goals or even continue building generational wealth. While we may dream of inheriting brokerage accounts — which are some of the best assets to inherit — the truth is not all items handed down to us are welcome; some might even be a hassle to manage. One of those burdensome assets to inherit is a storage unit. 

Sure, there might be a valuable item, or several, stashed away in a storage locker. But in many cases, managing this type of inheritance can be overwhelming. To begin, a storage locker itself is not an inheritable item — only the contents inside it are. As a result, the recipient must either continue paying the storage fees, which can be as high as $300 per month, or remove the items and end the lease. There may also be an outstanding balance if the original owner failed to make scheduled payments; if the rent wasn't paid for several months, you could be looking at over $1,000 in overdue fees. With either scenario, you may end up spending a considerable amount of time and money sorting through the storage unit contents just to find a few items or mementos worth keeping. But more often than not, a storage unit will contain unnecessary things that should have been sold or donated (which is why these units are one of the items retirees instantly regret paying for). 

If you inherited a storage unit, it is a good idea to take action immediately, as a delay could result in the loss of personal belongings. Storage unit leases are governed by private rental agreements that prevent access to the unit by anyone except for the renter. Upon the death of the renter, you should contact the storage facility to receive access. According to StorageCafe, this may require presenting a death certificate along with other legal documents that prove your authority to collect the items stored there. 

With access to the unit, it is time to begin going through belongings. This will likely be the most burdensome part of the process; to streamline it, Storage Rentals of America recommends sorting items into categories such as personal belongings, valuable possessions, and things that should be donated or thrown away. Additionally, if you inherit a unit but don't want to go through its contents, you can hire an estate sale company to sell or donate the belongings. However, with this option, you may lose important documents or personal items. And if you choose to sell the inherited items, the proceeds of the sale may be added to your gross income for that year.