The term ‘inheritance’ refers to the assets bequeathed by an individual to their loved ones when they pass away. An inheritance may comprise cash, investments (such as bonds or stocks) and other assets like automobiles, art, jewellery, real estate and antiques. It’s important for individuals to make clear plans regarding their inheritance and communicate these plans to their loved ones. It’s not uncommon for there to be uncertainty over the passing on and division of an estate, and this can cause conflict within families.
Involving the Family in Discussions
To help ensure smooth estate planning, it’s important for an individual to involve their family and discuss their intentions regarding the inheritance to be left, as this can prevent misunderstandings. Furthermore, in most cases it’s preferable that the executor and beneficiaries of a will are made aware that they will be named in this document.
The Importance of Leaving a Will
It’s vital to leave a will to ensure that a person’s assets are passed on in the way they desire them to be. Preferably, a will should be made with legal advice, and its signing must be properly witnessed. Succession planning professionals such as Edgar Paltzer understand that it’s a good idea for the individual to keep clear records of their assets – this will help the executor in the distribution of the estate.
Consider the Family Home
Issues can arise in cases where siblings are left an equal share in the family home as part of an inheritance. There can be difficulties when, for example, there are differing opinions about what happens to the property, which may be exacerbated if one sibling resides in the property and wishes to remain living there. Therefore, it’s crucial that a consideration of what will happen to the family home is part of the inheritance planning process, and clear communication of the reasoning behind the ultimate decision can help avoid family disputes.
Bestowing Gifts
Some people wish to make large gifts during their lifetime but are concerned that doing so could put them at risk of running out of money further down the line. Cashflow planning can be an effective way of figuring out how much access is required and of ensuring there are sufficient funds to pay for any care required.
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