When most people think about estate planning, they think about ways that they can leave assets to their heirs. They do not think about the opposite: planning to receive an inheritance. What you do after receiving an inheritance is just as important as planning what to do with your own estate. You should consider whether you are better off with or without the inheritance.
Receiving assets can have a drastic impact on your financial situation. It can put you in a higher tax bracket in some cases, and you need to carefully weigh the ability to pay any taxes against the benefits of receiving the inheritance. Another thing to consider is what the inheritance means for your pension and other retirement plans. If there limits to how much wealth you can have to receive important benefits, then you need to consider whether it is better to receive the inheritance or the benefits.
If an inheritance is going to hurt you financially or otherwise, you do not have to take the inheritance. You can disclaim it. However, you have to disclaim the inheritance within proscribed time periods. If you receive a large inheritance, talk to an experienced and qualified estate planning and administration attorney about how the inheritance might affect you.
- The Basics: Financial Power of Attorney - July 10, 2020
- Dont End Up Rich, Famous, and Intestate - July 8, 2020
- The Government Estate Plan for Intestacy - July 6, 2020
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