Having to deal with the aftermath of a loved one’s death is stressful enough without an inheritance being brought into the equation. Family members from all over the place seem to emerge from the woodwork and demand their share. If you have been made the sole beneficiary of a family member’s will, your other family members will likely become very contemptuous, and demand that you share with them. And, while in many situations, sharing is appropriate, in others, it is not. You must consider all of this when managing the inheritance process. You must always honor the wishes of the deceased, first and foremost.
There are many things you must think about when managing the inheritance process, and here are a few of those things.
You, Will, Need an Estate Planning Attorney
Being given an inheritance is not as simple as just signing a bit of paperwork; there are many legal processes that must be undertaken to complete and finalize it and ensure that the deceased’s wishes have been honored. A proper estate planning attorney can provide help with this process and allow you to sit back and relax while they tie up all possible loose ends. An estate planning attorney can help you with these things:
- They can help to gather together assets that may be in the hands of other family members or friends.
- They will deal with any outstanding debts in the deceased’s name and will arrange for the payments thereof.
- They will handle tax returns. The dead will often have overdue tax payments to make, and if they are not dealt with, you can incur huge fees. On top of this, you will have to pay an inheritance tax. Allow an estate planning attorney to deal with this for you.
- They will compile a list of all assets.
An estate planning attorney is, as you can see, very important. For those who have no experience in the legal field, the aforementioned is enough to provide significant anxiety and stress. Rather than going at it alone, you must employ an attorney to assist you and ease you through the process.
Consider Other Family Members
If you are the sole recipient of an inheritance, it is very important that you consider your other family members, especially if it is a large inheritance. If you have enough money to share, then you should seriously consider that, unless the deceased relative explicitly stated that you should not. Being excluded from the will of a family member is tough as it is, then having to see the chosen recipient flashing the cash around is enough to make anybody miserable. Sometimes, when compiling wills, family members may leave it all to one person, assuming that that person will be generous and look after the rest of the family. Unfortunately, this is not always the case. If you are that sole recipient, take into consideration how this may affect everybody else, especially anybody reliant on the deceased beforehand.
Pay Your Debts Off
If you are the recipient of a large inheritance, then it is very important you are frugal with the money. It is common for the majority of inheritances received by young adults to be frittered away quickly on clothes, cars, and luxurious lifestyles. You should be smart with your inheritance and ensure that it can last you for a long time. Money-saving experts have said that if you receive a large inheritance, you should immediately pay off any outstanding debts. Having a large sum of money sitting around and allowing your debts to continue to build is a recipe for disaster. Pay your debts when you can, and you will reap the rewards for many years to come.
Hire a Financial Advisor
Studies have suggested that up to 80% of people who receive an inheritance fire, the financial advisor who dealt with the deceased’s money. The best way to ensure that you deal with your money safely and appropriately is by keeping the same financial advisor or hiring a new one. A financial advisor will be able to give you proper advice and help you make financial decisions. They will have many years of experience, and if they dealt with the deceased’s finances, it would be a great asset. If you do not hire a financial advisor, you risk throwing all of your newly inherited wealth away.
Keep a Cool Head
The inheritance process is one that is very stressful and fraught with anxiety. Not only must you deal with the aftermath of the death of a loved one, but now newfound wealth. Relax as best you can and allow the professionals to deal with the process while you mourn.
Now you know a few ways you can manage the inheritance process. It is very stressful, but if you follow the instructions offered on this page, you should be able to get through it without any panic attacks or breakdowns. Good luck.