Over the years, I\u2019ve seen lots of people regret what they did with their inheritance. Regrets over how their inheritance was spent or how it was invested or how it was taxed or who gained access to it. Regrets over who will inherit it. And regrets about what happened to their inheritance in a divorce.<\/p>\n
People tend to do something that they \u201cwanted to do\u201d with their inheritance without first identifying all of their \u201cwants\u201d or without prioritizing all of their \u201cwants.\u201d<\/p>\n
So my advice to clients is to create an \u201cinheritance plan\u201d of how to improve your life with your inheritance, following these four steps:<\/p>\n
Step 1: IDENTIFY ALL OF YOUR WANTS. <\/strong>Without being critical or judgmental of yourself, write down all the things that you want do that involves money. Dream. Think of your present and your future. Include what wealth you want to leave on your death for others. Identify any health, family, or financial necessities (as opposed to wants or desires). Try to fill up at least one page. For example, consider:<\/p>\n Step 2: RANK (PRIORITIZE) YOUR WANTS<\/strong>. Now be serious. Based on your values and your goals, rank the above wants from least important to most important. It\u2019s a good idea to repeat this process until you find that your ranking of your wishes has not changed. When you are confident that your priorities are well informed and won\u2019t change, then go to Step 3.<\/p>\n Step 3: INVEST (OR SPEND) YOUR INHERITANCE ACCORDING TO YOUR PRIORITIES<\/strong>. Don\u2019t be swayed by the first \u201cwant\u201d that hits you or by pressure from others. Be intentional. Be thoughtful. Understand any potential investment (and the tax implications) before you make the investment. Ask your legal, tax, and investment advisors for their objective input. Spend or use your inheritance according to your most important, most valued, most long lasting \u201cwants.\u201d Doing this, I believe, gives you the best opportunity (a) to improve your life with the inheritance and (b) to avoid regret.<\/p>\n Step 4: IMPLEMENT YOUR PRIORITIES<\/strong>. Create or update your estate planning documents to reflect your wishes as to (a) how these investments are to be handled if you become ill and (b) who inherits these investments on your death. Seek the counsel of your accountant, investment advisor, and estate attorney. While you go through this process, keep your inheritance safe.<\/p>\n Copyright 2022 Phillips Law Offices, A Professional Corporation<\/p>\n","protected":false},"excerpt":{"rendered":" Over the years, I\u2019ve seen lots of people regret what they did with their inheritance. Regrets over how their inheritance was spent or how it was invested or how it was taxed or who gained access to it. Regrets over who will inherit it. And regrets about what happened to their inheritance in a divorce. … Continue reading Planning How to Improve Your Life with Your Inheritance<\/span> \n