Receiving an Inheritance One Day? Here’s What to Do Now.

Baby boomers are set to inherit up to $8.4 trillion over the next 15 years, according to The Center for Retirement Research at Boston College.  A recent New York Times article explored the complicated issues that these inheritances can bring, including transferring the emotional attachment you had to your parents to what they have left you.

The Times article found that some boomers tend to get “stuck” when deciding what to do with their inheritance, letting large sums languish in low interest accounts for years.  Others use the windfall to open their lives up to new possibilities, like starting a business or even retiring.

Here are some tips on how boomers should plan for an inheritance:

Create your own estate plan first.  You may be expecting an inheritance, but no one knows what the future will bring so create your own estate plan first.  Part of your estate planning should also include a prospective plan for your future inheritance.

Do some tax planning.  Inheritances can include cash, property, a valuable collection, investments or real estate, so the assets contained within your inheritance need to be examined for potential tax liability.

Look to the future.  Many boomers feel an obligation to protect the inheritance for their own children, while others may have charities or other plans for what remains after they are gone.  Your own estate plan should address ways to protect and pass on your assets in the most tax-advantaged way possible.

Financial experts advise that boomers should not just sit on an inheritance, but instead explore ways they and their loved ones can best benefit from it.  Inherited money should not be treated as a memorial; instead, use it as your parents no doubt intended it – as a way to make a better life for yourself and your family.

As a Personal Family Lawyer®, I can further advise you on all your options and make things as easy as possible for your family during a Family Wealth Planning Session.  If you would like to have a talk about estate planning for your family, call our office today to schedule a time for us to sit down and talk.

To your family’s health, wealth and happiness!

David Feakes

P.S.  Want to get started on the most important planning you’ll ever do for your family?  Give our office a call at (978) 263-6900 to get started.  You’ll be so glad you did.

David Feakes is the owner of The Parents Estate Planning Law Firm, PC – a law firm for families in the Acton, Massachusetts area. David helps parents protect the people they love the most.  If you would like to receive David’s exclusive, free report, “Six Major Mistakes To Avoid When Choosing An Estate Planning Attorney,”  you can get it right here.

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At The Parents Estate Planning Law Firm, we answer your questions at your convenience; we stay in frequent communication; and we meet to discuss changes in life circumstances and in the law to ensure that your assets are protected.

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