Avoid the Asset Hassle, Courtesy of Uncle Pennybags

Piggy bankBeware the hassle assets. They are called that because if you inherit some, you will jump hoops, go down chutes and climb up ladders to get these assets into your name.

The corollary: if you own hassle assets now, do your spouse and estate recipients an enormous favor, and deal with these assets now, while you can. Prevent the legal zoo. We’ll explain how below.

Let’s contemplate your rich Uncle Pennybags, who has received huge royalties over the years as his picture has appeared since 1936 on millions of Monopoly boards, Community Chest and Chance Cards. (You thought it was Warren Buffett?)

Uncle Richie (as you called him) was a sophisticated investor; no Baltic Avenue for him in the real world.  Instead, he bought into companies which owned mineral rights in Georgia and oil well interests in Texas. He also bought a couple of shares in a company producing a Broadway musical. And yes, he had a part-interest in an assisted living facility on Marvin Gardens.

So when Pennybags died, his estate owned 1.6% of a Georgia partnership trying to sift kaolin out of dirt, 0.875% of a Texas venture owning a semi-dry oil well, and 3% royalties from whenever their musical was performed, whether in local high schools or foreign countries. Read more