Inheritance allows you to transfer a portion of an items Temper Levels, Transcendence, Seal Stone slots, and its random Equipment Effects category. In order to craft an item for Inheritance, it must have a minimum of +15 Tempering.
When crafting, a window will appear to confirm the creation of the Inheritance item. This window will list the two random Equipment Effects that will be maintained, and also that the item will lose two Transcendence levels.
Upon success, your newly created Alsacian item will be available. This new item will maintain the two random Equipment Effect categories (but not values), up to 70% of the original item Tempering, and all Seal Stone slots.