When It Actually Makes Sense to Say “No” to an Inheritance
Most people assume that receiving an inheritance is always a good thing, and in many cases, it is. But in my practice, I’ve seen situations where accepting an inheritance outright can create unnecessary tax burdens and long-term planning problems. There’s a lesser-known strategy that can help families make smarter decisions after a loved one passes: it’s called a disclaimer. And in the right circumstances, it can be one of the most powerful tools available in estate and tax planning. What Is a Disclaimer? A disclaimer is a legal decision to refuse an inherited asset. When properly executed, the asset passes ... Read More
Inherited IRAs: What Beneficiaries Need to Know as IRS Enforcement Begins
For several years, many inherited IRA beneficiaries have lived in a state of uncertainty. Following the passage of the SECURE Act in 2019 and its successor, SECURE 2.0, enacted in December 2022, the rules governing inherited retirement accounts changed significantly. Yet IRS enforcement lagged, and required distributions were effectively delayed for many heirs. That grace period is now ending. Beginning this year, the IRS is enforcing annual required minimum distributions (RMDs) for certain inherited IRAs, and beneficiaries who fail to comply may face substantial penalties. If you inherited an IRA in recent years, or if your estate plan includes retirement ... Read More
Estate Planning Checklist: 5 Ways to Prepare
Nobody wants to think about becoming sick or passing away. However, accidents can happen to anyone at any time. Life can be unexpected. Unfortunately, many people have denied estate planning over the years. Some believe it’s not necessary, while others don’t feel comfortable discussing the idea of death. However, a comprehensive estate plan should consider what happens in the event you become disabled or pass away. It is about making sure that your loved ones are taken care of after you die and that your assets are distributed as you wish. By planning ahead, you can minimize future stress ... Read More
A Forgotten Form Costs $1 Million: Lessons in Estate Planning
When it comes to estate planning, the devil truly is in the details. A recent case involving a $1 million retirement account underscores the importance of keeping your estate plans current. The cautionary tale involves a man who, despite breaking up with his ex-partner in 1989, discovered decades later that she was still set to inherit his sizable retirement savings due to an overlooked beneficiary form. The Importance of Updating Beneficiary Forms One of the most common yet crucial mistakes in estate planning is failing to update beneficiary designations on retirement accounts, insurance policies, and other financial instruments. In this ... Read More
It Is Important to Prepare Your Children for an Inheritance
It may be awkward to discuss your wealth with your children. Talking about how much money or property you have is usually viewed as taboo. Asking someone else about what they have is often considered impolite. But failing to talk to kids about how much they may inherit could leave them unprepared to handle even a modest amount, and often results in the money being squandered quickly. Baby boomers are considered the wealthiest generation and are set to pass that wealth on to their children. It's estimated that $68 trillion will be passed down from boomers within the next few ... Read More
How to Pass On Your Heirlooms and Forego the Drama
Passing down heirlooms from generation to generation is a cherished tradition that transcends time and culture. These tangible mementos of our family's history hold sentimental value and can help keep the stories of our ancestors alive. However, we often unwittingly pass on unresolved family tensions and disputes alongside the passing of precious heirlooms. It is essential to recognize the potential for family drama when planning your estate to ensure a smooth transition of your legacy. This blog post will explore the importance of mindful estate planning, open communication, and preserving family harmony to ensure that your heirlooms are embraced with ... Read More
Preserve Generational Wealth With 3 Tips
Have you considered what is required to preserve generational wealth and your legacy? Or the impact an inheritance will have on family members in different stages of life after you are gone? You may worry that children and grandchildren will lose motivation and work ethic after they inherit. Some beneficiaries may experience favoritism, or relationships could dissolve over trivial disputes. How can you ensure their inheritance contributes to generational wealth and is used to achieve a better future? Your loved ones must be ready for this new responsibility. Ideally, an inheritance will improve their lives while ensuring its use follows ... Read More
