Inherited assets: what to do when you don’t want them

An inheritance can provide a warm reminder of someone who cared about us. It can also make a life-changing difference to our finances.

But what happens if you inherit assets you do not want?

You might not inherit cash.

Cash is usually the simplest inheritance to deal with. Any Inheritance Tax is normally settled by the estate before it is distributed, leaving you free to spend, save or invest what you receive. Returns generated afterwards may be taxable.

Most people do not hold all their wealth in cash. Investments, property and personal possessions, often called chattels, regularly feature in estates, and these inherited assets can bring practical decisions, costs and possible tax consequences.

At Continuum, we are looking at what you can do when an inheritance feels more like a problem than a benefit.

Chattels

Chattels are tangible, movable possessions rather than land, buildings, cash, investments or business assets. Everyday household contents may have little financial value and, unless they hold sentimental value for you, there can even be a cost involved in clearing or disposing of them.

Other chattels can be much more valuable, including artwork, jewellery, antiques, collections and classic cars. Before selling or giving anything away, it is sensible to obtain a professional valuation.

Inheriting a classic car when you are not an enthusiast can feel like being saddled with a problem, but specialist dealers and auction houses can help. Likewise, a picture that has no place on your wall may be suitable for sale through an experienced auctioneer.

Capital Gains Tax may become relevant if a possession is later sold for more than its value at the date of death. Some assets, including many cars, may qualify for exemptions, but the rules depend on the circumstances.

Investments

You may inherit shares, funds, investment trusts, bonds or tax-advantaged holdings such as ISAs. Pension death benefits are governed by separate rules and do not always form part of the estate, however this is proposed to change in April 2027.

The executors or administrators will normally arrange valuations, contact providers and establish whether investments can be transferred to beneficiaries or need to be sold by the estate.

There is not usually an immediate Income Tax or Capital Gains Tax charge simply because you inherit money or investments. Dividends, interest and later gains may be taxable, and the inherited investments may not suit your objectives or attitude to risk.

Property

Property is one of the most significant assets someone can inherit. It might be a family home, a rental property or a holiday home, but ownership brings costs and responsibilities.

What if you don’t want the property?

There may be nothing to stop you moving in, but you might not want to. The property could be too large, too small, in the wrong location or subject to restrictions, as can be the case with some retirement properties.

The costs of owning an inherited property

Selling may appear straightforward, but it can take time to realise its value in cash. Until a sale completes, there may be insurance, council tax, maintenance, security, mortgage or service charges to cover.

Inheriting all or part of a home may also affect your eligibility for first-time buyer relief later. The effect depends on the property interest and where you buy.

Existing homeowners may also face additional property-purchase taxes or council tax, depending on their circumstances and local rules.

Selling an inherited property

Selling may still be the most suitable answer, although some properties are harder to dispose of.

Retirement flats can have fewer buyers, while charges continue when empty. Holiday Park homes can present similar difficulties.

If you do not want the property, the executors may be able to sell it while it remains within the estate rather than transferring it to you first. This needs to be discussed before the estate is distributed.

Capital Gains Tax can arise if the property increases in value after the death. Whether the estate or beneficiary should sell depends on the specific figures and individual circumstances.

Refusing or redirecting an inheritance

You can refuse an inheritance before accepting any benefit, although a disclaimer does not normally let you choose who receives it. A deed of variation can redirect it and, if completed correctly within two years, may have tax advantages. You should consider taking advice before using either route.

Getting some expert help

Whether you inherit property, investments or personal possessions, inherited assets can require decisions that are not always straightforward.

Professional advice can help avoid rushed decisions, unnecessary costs and unexpected tax consequences.

Careful planning can also help prevent the assets you leave becoming a burden for your beneficiaries.

For help with inheritance or estate planning, talk to us at Continuum.

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This article is intended for general guidance only and is based on the opinion of Continuum it does not constitute financial advice. Individual circumstances vary, and you should consider seeking advice from a regulated financial adviser before making any decisions about your Inheritance tax planning

The Financial Conduct Authority does not regulate taxation and trust advice, will writing or legal advice.

The value of an investment can go down as well as up. When investing Capital is at risk.

Investors in ISAs do not pay any personal tax on income or gains. Levels and basis of reliefs from taxation are subject to change and their value depends upon your personal circumstances

We recommend seeking professional advice on personal taxation matters