4 Simple Steps to Avoid Inheritance Mistakes

By working with an experienced financial professional, you can plan how to spend and invest your wealth, as well as understand how to potentially avoid costly mistakes.

Plan Ahead

Are you expecting to inherit one day? While these conversations can be difficult to have, it’s important that you communicate with those from whom you will be receiving money to determine their intentions, wishes, and conditions. In addition, planning ahead will allow both parties to research wealth transfer options and strategies to minimize the tax burden.

Be Intentional

Many recipients of large sums of money are often unaware of how to plan their new day-to-day lives. There are many decisions to make, both simple and complicated, so it’s important to have a well-thought-out vision for your new financial situation.

Protect Your Relationships

An often overlooked aspect of receiving an inheritance is how it affects your relationships with family and friends. It’s not uncommon for friends and relatives to treat you differently or try to take advantage of your new wealth. Communicate clearly with those close to you, but also set boundaries and stay focused on your goals and the legacy of your family.

Work With a Professional

A financial professional who understands your personal situation can help you understand your options and show you how you can use your inheritance effectively and wisely. They can help you navigate the many intricacies involved and provide you with unbiased guidance as you walk through what is often an emotional time. Working with a financial advisor may help you avoid common mistakes and feel more confident in your choices.

A Few Questions That We Can Help Answer

Should I quit my job?
How do I avoid excess taxes?
How will this change my long-term financial plan?
Should we pay off our home or invest our cash?
Should we purchase a larger home or move to a new city?
Do I have enough to help support friends or relatives?
Will I run out of money?

Are you planning to inherit wealth? Talk to us about the steps you can take today to plan for this life milestone. We help families plan for the future.