Maximize your inheritance through careful planning.
People tend to treat money they have earned differently than money they have been given.
Have you ever noticed that?
Gifted or inherited money is often spent quickly on big-ticket items.
It certainly is tempting to go on a shopping spree or get a taste of luxury.
According to a recent Forbes article titled “5 Important Steps To Maximize An Inheritance,” the temptation to use the money immediately (and imprudently) is not unusual.
For this reason, it is essential to get financial guidance or create a constructive stewardship plan yourself.
What actions can you take to maximize your inheritance.
Have Calculated Fun.
Financial planning does not mean you can have no fun.
You can still do something exciting with your inheritance, whether a charitable gift you have been wanting to make or a personal treat.
Even so, you should make concrete plans sooner rather than later regarding how to maximize your inheritance.
Without a plan, your small “treats” could cost your entire inheritance.
Consider Taxes on Your Inheritance.
Some states have an inheritance tax.
If this is the case, you may owe the government money on the assets you received.
Fortunately, neither Kansas nor Missouri is in this camp.
Reconsider Quitting Your Job.
Early retirement may sound tempting.
Before you put in your two weeks notice, make sure you have enough saved to replace your income.
Your funds will need to last you for the rest of your life.
Choosing to maximize your inheritance can help.
Take Care of Yourself.
Family may come seeking financial assistance from you.
You may have a big heart and want to help.
Even so, make sure your own finances are in order before giving money to others.
You can be of no assistance to others, if you become a burden yourself.
Wise counsel is never a bad idea.
Discussing your situation with an experienced estate planning attorney, financial planner, and CPA can help you make your inheritance work for your own goals.
Reference: Forbes (Feb. 26, 2020) “5 Important Steps To Maximize An Inheritance”