What To Do When Someone Leaves You Their Inheritance
By JW Rayhons
More Americans will receive an inheritance in the next 10 – 20 years than we’ve ever seen in U.S. history.
Let's look at this in the form of a hypothetical client situation. When Connie's mother passed away, she and her two brothers discovered that their parents had a lot more money than they realized. And, it was kind of all over the place; accounts at the bank, a pension, 401k & a couple IRAs, cash in a safe, and a stock account that he must have played around with. Then, there was also the house! The will they found looked like their mother hadn’t updated it in quite awhile. Thankfully, Connie and her brothers got along well, but they decided it was probably best to work with a licensed financial professional to help them figure all this out.
When you lose someone close to you, not only is it emotional, there are many decisions to make. Some scenarios may not go as smoothly as the one above. It is important to have these conversations with our loved ones so we are prepared when these situations arise.
his sounds basic, but it will make all the difference. You’re receiving this because the person wanted you to have it. It sometimes can be hard to openly accept something we didn’t earn. Receive this with gratitude and utilize it well.
You might be surprised to hear that many people are worse off financially within 18 months of receiving an inheritance. There are many outlets for money and with how easy it is to access information, if you’re not aware you’ll not notice that you’re getting more calls, more ads, more requests for charity than before. And sometimes requests come from people you’re close to or connected with.
Be forward thinking
Have a plan or create a plan. Money that doesn’t have a place to go floats away. Find a professional that you trust. They can help you understand how best to utilize the IRA or inheritance you’ve received. They can help you be aware of any potential tax consequences or how to avoid common mistakes people make. They can stand along side you to be aware of options like beneficiary IRA, while keeping within the guidelines of the recent SECURE Act.
Like Connie from our hypothetical scenario above, when you receive an IRA or other assets from a family member, allow it to positively influence your life. This can sometimes be a way that your loved one continues to touch your life with theirs.
There’s more to life than money! The Rayhons Financial family are professionals that want to help you. Connect with us for an initial conversation, call us at (480) 507-2425 or contact us online. We’d love to meet you.
The content in this article was prepared by the article’s author. Voya Financial Advisors, Inc. does not endorse its content, and the views expressed may not necessarily reflect those held by Voya Financial Advisors, Inc.