For most, inheriting valuable property is something to celebrate since it could offer life changing wealth through leasing or selling the land. But for some, the benefit is short lived when they discover that the property is contaminated with toxic chemicals that can destroy the ability for the land to generate revenue or cost huge amounts to clean up. The problems often lies in the fact that the recipient of the land had no clue about it’s prior use so they do not learn until too late about the toxic mess they now own. Disclaiming the property can avoid this problem in many cases, but the strict time limit to disclaim that many states impose may result in losing the chance to rid themselves of the real estate. Whenever inheriting property, it is always a good idea to get with an advisor who can research the history of the land and check to see if there are any problems that might arise. The real estate being used for such purposes as gas stations or dry cleaners, among other uses, can be a good indicator that environmental clean up might be in the cards. While this might not always be an option, a little due diligence can save much hassle and money down the line.
See Paul Sullivan, Contaminated Property Makes for Costly Inheritance, The New York Times, February 19, 2016.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
