I wanted to reach out to address something that routinely comes up in financial and estate planning discussions—how to plan for an anticipated inheritance. It can be tough to discuss, but I encourage all my clients to have a plan in place for when (and if) an inheritance comes their way. Here’s some high-level guidance:
- If your anticipated inheritance is years away, plan and save for the future as if it didn’t exist. Then, if circumstances change (and believe me, they often do!), you and your family will still be financially secure.
- If an inheritance is imminent:
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- Identify your current and future financial goals, then use the inherited funds to help you meet those goals.
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- Refrain from spending your inheritance before you have it. Keep from making large purchases before you know precisely what you’ll be receiving.
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- Build a team of professionals to help you reach and stick to your post-inheritance goals. This might include a financial planner, an estate planning attorney, and a tax professional.
If you would like to review your financial plans or if you’re in the midst of receiving an inheritance, reach out to schedule a free consultation. I’m here to help however I can.