Receiving an Inheritance Could Change Your Own Estate Plan
Receiving an inheritance can be a significant blessing, but can also result in some financial complications. The beneficiary might not know how to best manage the money, resulting in some financial troubles.
When you receive an inheritance, it is important to spend some time readjusting your own financial situation and to review your estate plan, as a sudden influx of money might result in changing some of your plans.
The effects of your inheritance on your estate plan
An inheritance could significantly change the value of your estate and the number of assets you have, which could result in changes to your tax and financial planning.
If you have never had substantial assets prior to your inheritance, you can use your estate plan to safeguard your assets and wealth. Update that plan to incorporate the recent money you have inherited, especially if it puts you over the edge of the threshold for the federal estate tax exemption. You may need to start investigating tax avoidance and limitation strategies for your estate plan.
Your estate planning attorney can be of great assistance in re-evaluating your estate plan, but for specific financial needs it is recommended you seek the assistance of a professional financial planner or accountant, especially if your inheritance is significant. They will be able to provide you with more advice on the specific savings and investment vehicles you should use to set yourself up for long-term financial health.
For more information about inheritance and its effect on your estate plan, contact an experienced Tampa, FL estate planning lawyer at BaumannKangas Estate Law.