How to prepare to receive an inheritance
The passing of a loved one is a stressful time for anyone. Add an inheritance into the mix and relationships between family members can add even more stress.
One thing is certain; receiving an inheritance without proper planning is the best course of action.
Below are some things to consider before moving forward with an inheritance.
1. Take your time.
It's hard to think clearly while grieving the loss of a loved one. Avoid making any drastic spending decisions and give yourself time to process the loss. Definitely don't quit your job, it’s best to wait and come up with a plan once some time has passed.
2. Understand what you're inheriting.
- If you are inheriting a home, there could be some outstanding debt on the house.
- The inheritance may require you to pay more in taxes each year
- Receiving a trust account rather than a retirement account can have different implications. Trust accounts have language for principal and income
3. Consider logistics.
- Will the inheritance require extensive travel or additional storage to take ownership?
- Does a family member want what you have received? Consider the ramification of that.
Receiving an inheritance during a traumatic time can make the situation all the more hectic. But overall, inheritance should be a pleasant surprise at a difficult time. Learn more about receiving inheritances here.