5 Ways To Make the Most of an Inheritance
Losing a loved one is a time of mixed emotions. When it’s an older relative and you’ve been expecting this for some time, there’s a lot that can go through your mind. But for the difficulties involved in losing a loved one, if you get an inheritance this could be a life-changing opportunity. Many people struggle with their finances and inheritance could make a big difference. But an inheritance, whether it’s property, finances, or even worldly goods, requires sufficient management. Here are some things to help you manage the inheritance properly.
Decide on the Benefits of the Inheritance
When it’s something like finances we can, naturally, understand the benefits, but when it comes to something like property or worldly goods, it may not seem so beneficial to you as an individual. For example, if the person had a timeshare you may not necessarily see the benefits of this, especially if the property is so far away. In which case, it may be beneficial to exit the timeshare. This is where timeshare exit companies like the Centerstone Group could be able to help. It may feel like you are almost disrespecting the memory of your loved one, especially if you have personally inherited this but it’s important to weigh up the benefits. It could be useful for another member of the family. So if you felt guilty about selling something like a timeshare, it may be worth consulting others to see if they would benefit from it more than you.
Consulting With a Professional
Depending on the type of inheritance you may be dealing with a lot of red tape in the form of inheritance taxes. A financial advisor or a tax professional may be able to help you at this point. They can help you sell any assets and deal with any of the tax implications. Ultimately, it depends on the nature of the inheritance. For example, if you receive an inheritance from your spouse, there may not be any taxes due, but assets that are in non-retirement are taxed when they are sold. It’s important to consult with a professional because you may find yourself on the receiving end of a lot of issues, especially if you inherit an IRA. Because if you cash out an IRA and put the money into your own IRA, the money that goes into yours is subject to income tax.
Think About Your Goals
An inheritance can help you to determine a number of investments and goals that you would like to realize that you weren’t able to before. For example, you may want to eliminate your debt completely but you could also use this as an opportunity to set up a foundation or a trust in the name of the deceased’s memory. Because we have to remember that an inheritance is something that can get us out of a lot of trouble ourselves. But it’s so important to remember that we’ve been lucky to receive this and putting it into something that truly honors the memory of someone we miss terribly will be a great use of the inheritance.
Do Something for Yourself
When you inherit money one of the first things that pop into our minds is that we can do something for ourselves. That it’s so important to remember that an inheritance is rare. If you haven’t had a vacation in years this is the perfect opportunity but you need to set aside a small percentage. The rule of thumb is between 5% and 10%. When you set it aside for splurges, whether it’s a new car or a little vacation, it gives you the opportunity to enjoy yourself and it’s a wonderful little gift from the dearly departed.
Use This Time to Think About Your Own Estate
If you’ve inherited a lot of worldly goods, whether it’s rare books, jewelry, or real estate, you will need to increase your insurance policies but you also need to remember that inheriting something can help you to think about your estate. As losing someone is not the easiest of times and we can go through a variety of emotions, it does make us think about our own mortality. An inheritance is something that comes with a lot of goods attached to it but it also makes us think about what is yet to come, and thinking about your own estate is not necessarily something that we’d like to focus on, but in many ways, it’s the perfect time as you are already dealing with one type of estate.