Inheriting wealth can be a burden and a blessing. Even if you have an inclination that a family member may remember you in their last will and testament, there are many facets to the process of inheritance that you may not have considered. Here are some things you may want to keep in mind if it comes to pass.
Keep in mind this article is for informational purposes only and is not a replacement for real-life advice, so consider speaking with a legal or tax professional before making any decisions with an inheritance.
Take Your Time
If someone cared about you enough to leave you an inheritance, then you may need time to grieve and cope with the loss. This is important, and many of the more major decisions about your inheritance can likely wait. You may be able to make more informed decisions once some time has passed.
Don’t Journey Alone
There are so many laws, choices, and potential pitfalls – the knowledge an experienced professional can provide on this subject may prove critical.
Think of Your Own Family
When an inheritance is received, it may alter the course of your own financial strategy. Be sure to take that into consideration.
Prepare For the Tax Man
If you’ve inherited an IRA, it is important to consider the tax implications. Under the SECURE Act, distributions to non-spouse beneficiaries are generally required to be distributed by the end of the 10th calendar year following the year of the account owner’s death.[1]
It’s also important to highlight that the new rule does not require the non-spouse beneficiary to take withdrawals during the 10-year period. But all the money must be withdrawn by the end of the 10th
calendar year following the inheritance. A surviving spouse of the IRA owner, disabled or chronically ill individuals, individuals who are not more than 10 years younger than the IRA owner, and children of the IRA owner who have not reached the age of majority, may have other minimum distribution requirements. [2]
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.
Remember to do what’s appropriate for your situation. While it’s natural for emotion to play a part, and while you may wish to leave your inheritance as it is out of respect for your relative, what happens if the inheritance isn’t appropriate for your financial situation? A financial professional can help determine if the inheritance fits with your overall goals, time horizon, and risk tolerance. So, sign up with us for a complimentary review of your finances today.
[2] https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary
Disclosure:
Because investor situations and objectives vary this information is not intended to indicate suitability for any individual investor.
This presentation is for informational purposes only and does not constitute an offer to buy or sell any product. Past performance and any forecasts are not indicative of future results.
There are retirement account risks that could diminish investor returns, such as, but not limited to: low interest rates, market volatility, withdrawal timing and sequence of returns risk, government policy uncertainty, and increased longevity. Prospective investors should perform their own due diligence carefully and review the “Risk Factors” section of any prospectus, private placement memorandum, or offering circular before considering any investment.
Advisory services offered through Asset Strategy Advisors, LLC. (ASA). Securities offered through representatives licensed with Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Insurance offered through Asset Strategy Financial Group, Inc. (ASFG). ASFG and ASA are independent of CIS and are separate companies.
ia-eh-gp-a-512-10-2023
