Inheriting Money? Watch this First!

Getting an inheritance can be life changing. But that money can also dwindle quickly if you don’t do some smart planning. We’re here to provide guidance and help navigate the complexities of inheriting money or property. Here’s how:

Getting an inheritance is a significant event, and it’s important to handle it wisely.

We’ve been supporting families through this for many years and we’ve seen inheritances change people’s lives for the better. But we’ve also seen plenty of them squandered.

Here are some things to consider – to help YOU come out on the better side of those scenarios.

First, seek advice. When inheriting money or property, it’s crucial to understand any potential liquidity issues and tax implications. Do you know if taxes are a concern for your inheritance?  Will there be enough liquidity to pay those taxes?  Depending on what you inherit changes the answers to each of these questions, which could be money, farmland, property, or businesses.  Getting professional guidance can help you navigate this.

Second, incorporate your inheritance into your financial plan.  Once you know exactly what you will inherit after taxes, including it in your plan will help ensure that you have the visibility necessary to utilize your inheritance toward your original goals, and any new or modified goals in the most efficient way.  If you don’t have a comprehensive financial plan, it’s time to get one.

Third, don’t let the inheritance change your way of life before you revise your financial plan.   Resist the urge to quit your job or make sudden, drastic changes. Maintaining stability is key to being certain you don’t make mistakes that you later regret. 

If you haven’t received an inheritance yet, but know it’s coming – if possible, have a conversation now with your parents about what you will inherit, and any issues associated with it.  This can sometimes be challenging, but very helpful for planning purposes.  For more on this, see our video on family meetings. 

We’ve seen lots of people start out with the BEST of intentions – initially grateful and intending to use their inheritance wisely. But without a solid plan, they spent it all within a few years, and blew the opportunity to realize a long-lasting benefit from what may have been the only inheritance they would ever get.

Many of those we work with who DO keep their job, make a plan, and carefully consider their next steps – are able to enhance their lives and the lives of their kids and grandkids for generations.

Know that we are here for you. Reach out to us so we can help you plan wisely for the future.