If you’ve recently received a wealth inheritance, congratulations!
You are now a member of an elite group. How will your life change? Will your financial worries be over? What does it mean for the rest of your family members?
In this blog post, we will explore the many aspects of inheriting wealth and what it might mean for you.
What Does It Mean to Inherit Money?
Let’s start at the beginning:
To put it most simply, when someone dies with assets that need to be distributed, those assets are given in a way agreed upon by the law.
Many people will inherit an asset windfall at some point in their lives. This can be from family members, insurance policies, or other sources.
The process is different for everyone, and it’s important to know the steps you need to take after receiving this type of inheritance. It may not seem like a big deal, but many people overlook these basic steps.
Here’s What to Do When You Inherit Money:
The first thing to do is go to heardandsmith.com and let us advise you of the best way for this inheritance to be handled.
Here are some things your legal advisor will recommend:
Firstly, communicate with your Family Members: You may need help from family members, especially those out of state or those who have not yet been told about the inheritance.
Then, understand what the inheritance is from, and how it is going to affect social mobility and learn about the identity of any beneficiaries who are entitled to inherit it.
Lastly, discuss potential upward mobility and determine how you want this money to be distributed in a way that makes sense for everyone. Do you have children? Would they benefit more if their inheritance was divided into equal shares?
What About Wealth Inheritance Tax?
Even though the money may be coming from an estate, your counsel will advise you about how and when to distribute this wealth so that it is not taxed.
The best way these cash windfalls can be distributed can vary depending on many factors- what state you live in, etc.
The wealth inheritance tax implications depend a lot on the size of cash windfall you’re receiving and the type of wealth inheritance.
What is your state’s estate or death tax? If you live in one that has no such taxes, then all inheritances are free from taxation!
On the other hand, if there are both federal and state estate taxes, these will be split evenly.
If you’re inheriting non-cash asset windfalls like stocks or bonds, then your estate tax rate may be different than someone who is receiving cash for their inheritance.
Any wealth inheritance can have a unique set of implications, and it’s best to consult an accountant if you are unsure about the process.
Wealth inheritance can be difficult to understand at first. There’s a lot of information to take in and it can take time, but following the steps laid out above will make it a lot easier for you.
This article originally appeared on Florida News Times.
