Loune-Djenia Askew, Esq.
Sep 23, 2024
Inheriting assets can be both a blessing and a challenge. Whether it's money, property, or valuable items, knowing how to handle an inheritance is important. Here’s a simple guide to help you navigate the process.
Inheriting assets can be both a blessing and a challenge. Whether it's money, property, or valuable items, knowing how to handle an inheritance is important. Here’s a simple guide to help you navigate the process.
Understand What You’ve Inherited
First, take stock of what you’ve inherited. This could include cash, real estate, stocks, or personal belongings. Make a list of all assets and their estimated value. Knowing exactly what you’ve inherited will help you make informed decisions.
Consult a Financial Advisor
They can provide guidance on how to best manage your inheritance, considering your current financial situation, future goals, and tax implications. An advisor can help you create a plan that aligns with your long-term objectives.
Consider the Tax Implications
Inheritances may come with tax responsibilities. While Florida doesn’t impose an inheritance tax, you might be responsible for federal taxes, especially on investment income or if you inherit a retirement account. A tax professional can help you understand what’s required and how to minimize your tax burden.
Decide How to Use the Inheritance
Consider your options for using the inheritance. You might choose to pay off debt, invest for the future, or save for specific goals like education or retirement. It’s important to align your decisions with your overall financial plan. Avoid making impulsive purchases that could deplete your inheritance quickly.
Update Your Own Estate Plan
If you’ve received a significant inheritance, it’s a good idea to update your own estate plan. This includes reviewing or creating a will, setting up trusts if needed, and ensuring that your beneficiaries are up to date. Proper planning can help protect your assets and ensure they’re distributed according to your wishes.
Seek Legal Advice
If the inheritance process is complex or if there are disputes among heirs, seeking legal advice is essential. An attorney specializing in estate law can guide you through any legal challenges, helping to ensure a smooth transition of assets.
For more information, contact our office at Askew & Associates, P.A. by calling 954-546-2699.
Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns.