As they plan their estates, many people consider themselves fortunate if they are able to leave substantial inheritances to their children — and the children will be grateful to receive it. However, large inheritances bring certain responsibilities that can be overwhelming to some heirs, especially because they arrive during a grieving process.
Those who inherit a large sum and have not previously handled such amounts may be unsure of how to manage the money. The details can easily become overwhelming. Many heirs make the mistake of promising gifts or loans to friends and family before they sort out their own financial plans. Others make substantial investments too quickly, without analyzing the positive and negative aspects of different investment strategies.
New heirs must remember to slow down. Before making any investments or promises with new wealth, it is wise to consult with a financial adviser and to begin to learn about money management. Keep in mind that it can take years to adapt to new responsibilities and make long-term decisions about one’s investments.
After solid decisions about investments are made with the help of a financial adviser and tax professional, an estate planning attorney can assist an heir with plans to provide for his or her own legacy.
Pioneers of Elder Law — For over 30 years, Gilfix & La Poll Associates LLP has innovated creative legal solutions to help you manage and plan the future of your estate.
To contact an estate planning lawyer visit http://www.gilfix.com/ or call 800.244.9424.