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5 Things to Consider Before Leaving an Inheritance

Leaving behind an inheritance is a dream that many smart investors have. You’ve worked hard to build and protect your wealth, so it goes without saying that you should put the same amount of work and thought into what happens with it once you leave it behind.

In a recent survey conducted by a major private banking and investment group, 91% of respondents said they plan to leave most of their wealth to family members, while 46% are concerned about giving too much money.

With that many investors dedicated to leaving an inheritance, here are some questions to ask yourself and your financial advisor before making any final decisions.

  1. Make sure it’s the right move: While we all may want to leave an inheritance, it is important to make sure what lies ahead for you. Do you plan on retiring soon? Do you plan on traveling once you retire? These, and many more questions, are important to bring up with your financial advisor to ensure the best path is set.
  2. Teach your children about money: This seems like a “goes without saying” piece of advice, but your children may not have the same foundation you have when it comes to dealing with finances. The best way to give your children a solid start is to teach them some of the things that you have learned throughout your years of investing wisely. Some investors have even required that their children who receive an inheritance donate 1% of their donation to a charity each year.
  3. What are the situations of those you are leaving money to?: It is also important to examine the situations of those you are planning to leave an inheritance to. Are they minors? Are they disabled? Are they approaching retirement age? These questions can drastically alter the way in which you plan to leave your money to them.
  4. Examine the risks: Leaving a large amount of money can significantly affect someone’s life. And while it may not be pleasant, you should examine some risk factors such as whether or not your recipients have drug or alcohol problems, if they have shown poor money management skills, or if they already have a lot of debt. These situations don’t necessarily mean you would chose to not leave an inheritance, however, it may change the way in which you structure it.
  5. How to leave your inheritance: There are numerous ways to leave your wealth behind and the best one will be determined after speaking with your financial advisor. Some methods include life insurance, a trust, and cash gifts. Keep in mind that all methods have their advantages and disadvantages based on everyone’s personal situation.

Be sure to speak with your financial advisor for more information on leaving an inheritance. Be sure to contact Steel Valley Investment Group of Raymond James for more information.

The information provided is general in nature and should not be considered legal advise. Please note, changes in tax laws or

regulations may occur at any time and could substantially impact your situation. Raymond James financial advisors do not render

advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.

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