Inheritance

Building a new financial plan.

Inheritance Financial Advisors

inheritance-financial-planning-services1We specialize in helping people who have or are going to inherit money. We are known nationally for our experience in helping clients manage sudden wealth. If you are anticipating an inheritance in an amount that is making you uneasy or are feeling pressure because of the responsibility and are not sure what to do, we can help you get back in control and feeling confident.

Clients who have inherited come to us looking for immediate clarity into what they have and a clear plan on how to preserve and manage their wealth going forward. We have created an individualized process which addresses each area of their finances. There are many legal, financial, and tax implications surrounding an inheritance that we can help you address. We work closely with our client’s other tax and legal advisors, or if they don’t have other advisors, we can help them build their team and make sure all of the issues have been addressed.

A few things to consider if you are expecting an inheritance:

  1. Take your time. If someone cared about you enough to leave you a sizable inheritance, then likely you will need time to grieve and cope with their loss. This is important, and many of the more major decisions about your inheritance can likely wait. And consider, too – when you’re dealing with so much already, you may be too overwhelmed to give your options the careful consideration they need and deserve. You may be able to make more rational decisions once some time has passed.
  2. Don’t go it alone. There are so many laws, options and potential pitfalls – The knowledge an experienced financial, legal, and tax professionals can provide on this subject may prove to be vitally important. Unless you happen to have uncommon knowledge on the subject, seek help.
  3. The taxman may be visiting. If you’ve inherited an IRA, it is extremely important that you weigh the tax cost of cashing out against the need for instant funds. A cash out can mean you will have to pay (on every dollar you withdraw) full income tax rates. This can greatly reduce the worth of your bequest, whereas allowing the gains of the investment to continue to compound within the account, and continuing to defer taxes, may have the opposite effect and help to increase the value of what you’ve inherited.
  4. Stay informed. The estate laws have seen many changes over the years, so what you thought you knew about them may no longer be correct. This is especially true with regard to the taxation on capital gains. The assistance of a seasoned financial professional may be more important than ever before.
  5. Remember to do what’s right for YOU. All too often an inheritance is left in its original form, which may be a large holding of a single company – perhaps even one started by the relative who bestowed the gift. While it’s natural for emotion to play a part and you may wish to leave your inheritance as it is, out of respect for your relative, what happens if the value of that stock takes a nose dive? The old adage “never put all your eggs in one basket” may be words to live by. Remember that this money is now yours – and the way in which you allocate assets needs to be in line with YOUR needs and goals.

A few of the most common questions we help our clients answer are:

  • “Will the money I receive from the inheritance affect my taxes?”
  • “I’m getting the inheritance in a trust. Does this mean I can’t use it how I want?”
  • “The inheritance trust requires a co-trustee. What is their role?”
  • “How can I best integrate this new money into my existing assets?”
  • “I’d like to give away some of the inheritance. Can I do this and how much can I afford to give?”
  • “Should I tell my kids about the inheritance, and if so, how much should they know?”
  • “What is the best way to invest the inheritance?”
  • “How do I leave enough assets to my kids that they can do anything, but not so much they can do nothing?
  • “Do I have enough money to quit my job, buy a new house, move, etc.?”

Let’s start a conversation.

We welcome your call (949-305-0500) or email.

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