How to Prepare for Wealth Transfer Juniper Wealth Management

When someone you love passes away and they leave you an inheritance, there are a few things you may want to keep in mind as you move through the grieving process. We understand it can be a very difficult time, so we have some recommendations and explanations to hopefully make the financial side of things a little easier for you.

  1. The definition of wealth transfer:

Wealth transfer is the process of moving money and assets from one person to another, usually because someone has or may pass away soon.[1]

  1. You don’t have to do anything right now.

Even if your inheritance is significant, you don’t have to immediately dive into what you will do with the money, how you’ll invest it, or what debts you’ll pay off. The last thing you probably want to do when you are emotionally overwhelmed is make serious financial decisions. So, don’t feel obligated to use the money right away or make a decision about it right now.

  1. When you’re comfortable, consider paying off debts.

One of Warren Buffet’s main investment strategies is to pay off your debts (especially credit card debt).[2] Because the APR on credit cards and other debt is so high, you will rarely find a higher rate of return on regular investment strategies.[2] That is why Buffet recommends paying down debts as a means of wealth protection and something to consider when it comes to estate and legacy planning.

  1. If you inherit a house, consider what you’re going to do with it.

When you inherit a house, you need to decide if you are going to live in it, rent it, or sell it.[3] Keep in mind there are various costs and taxes associated with each option, so the best option for you may vary based on your circumstances.

One thing that you may find helpful is considering a financial professional to help you with managing your inheritance. If you are emotionally and intellectually drained by the grieving process, a financial professional can at least take some of the burden off you by providing tailored advice and suggestions based on your situation. Consider reaching out to one of our professionals today for a conversation about your financial situation today.

 

This information is provided as general information and is not intended to be specific financial guidance.  Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives. The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed.