Even though receiving inheritance might seem like a welcome windfall for people in your family, there are some setbacks associated with receiving a substantial inheritance.
Every year it’s estimated that over 1.7 million American households receive some form of an inheritance. However, within just a couple of years following that windfall, nearly three-quarters of beneficiaries have lost that inheritance, and more than one-third of all inheritors who recently responded to a study stated that there has been a decline in their wealth or no change at all in their wealth after inheriting assets or money.
Inheritances can come with strings attached, especially depending on the type of asset. Some of the setbacks faced by beneficiaries when inheriting property, investments and cash can include:
- Family conflicts
- Unexpected tax consequences
- Unplanned impact on government benefits
Considering all of these issues is an important step for anyone engaged in the process of putting together their own estate planning. Schedule a consultation today with an experienced estate planning lawyer to discuss which, if any, of the above listed challenges could potentially impact your family, and the planning strategies and tools you can use to address that.