Today’s Prep:
Have you recently inherited assets or one day expect to? How can you prepare your estate in a way that makes it easy for your heirs later on? We’ll look at all sides of legacy planning on this episode.
Equipping Points:
When receiving an inheritance, a lot of interesting or unexpected scenarios can occur. We discuss four different situations to hear Eric’s advice on how to handle them on today’s episode of the Retirement Ready podcast.
When estate planning, would it be beneficial to have your parents sign over their house before they die? Would this help to keep it out of the estate? What are the pros and cons of this? What do you need to know about the step-up in basis? There are so many little details that add up when doing retirement planning or estate planning, so be sure to work with a professional to do your due diligence and implement the best strategy.
If shares of a fund were inherited, how will the taxes be calculated if you cash those shares out? Will this be considered capital gains? What will the rate be? How might tax law change in the future surrounding that?
One listener found themselves sorting through a tricky situation when her husband died and the beneficiary listed on his life insurance was still his ex-wife. Is there anything that can be done? Eric shares the importance of updating your beneficiary after various life changes.
Finally, what happens if adult children have their own financial advisors when they inherit? Does the money being passed on need to continue to be managed by their parents’ advisor? Or does it make sense to have two financial advisors? Often, if you have someone you’re already working with, it will make the most sense to have all of your money managed by one place to have a coordinated approach to your finances.
Listen to the entire episode or click on the timestamps below to skip to a particular inheritance scenario.
0:46 – Mailbag: Should my parents sign over their house to me before they die?
4:05 – Mailbag: Is an inherited taxable account considered capital gains?
5:40 – Mailbag: How do I change a beneficiary designation for an ex-spouse to me?
8:35 – Mailbag: Is it okay to have two separate financial advisors?
Today’s Takeaway:
“When anything happens, you definitely want to make sure your beneficiaries are updated. Anything with a D: divorce, a decade goes by, disability, add or lose a dependent, or a death.“
-Eric Peterson
Related Resources:
New Year, New Ideas to Consider
Should I Use My Severance Package to Pay Off the House?
Mailbag: Do I Really Need All of These Life Insurance Policies?
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Mailbag – Roth IRA, Emergency Funds & Tax-Deferred vs. Tax-Free
Making more money is great, but what happens when it becomes a roadblock for contributing to a Roth IRA? And how can you make your emergency fund work smarter for you? In today’s episode, we pull from the mailbag and answer a mix of listener questions. Eric addresses concerns that reflect the real-life hurdles many face on the road to retirement.
Read MoreHow 2025 Tax Updates Can Impact Your Financial Plan
Although tax season has come to a close, the time for smart tax planning has just begun! In this episode, we unpack the upcoming tax updates that could affect your planning for the next few years, including changes to 401(k) contribution limits, tax deductions, and the potential benefits of using tax-advantaged accounts like HSAs.
Read MoreEarly Retirement: Dream Come True or Financial Trap?
Ever fantasize about leaving your 9-to-5 before traditional retirement age? You’re not alone, but is early retirement even possible? In today’s episode, Eric explores what it really takes to retire early including how to tackle healthcare costs, how to make money last longer and the importance of shifting your mindset from spender to saver.
Read MoreWhat 400+ Advisors Say Really Keeps Retirees Up at Night
What are Americans really concerned about when it comes to retirement? In this episode, we unpack the results of an insightful survey from Financial Advisor Magazine, which was completed by over 400 financial advisors. We’ll also compare these answers with the real-world concerns we hear every day from the clients in our own practice.
Read MoreBracket Busters and Stock Flops: The Risky Game of Picking Winners
March Madness is here, and just like filling out a bracket, picking individual stocks can feel like a thrilling gamble. But the odds of winning big are slim. In fact, history shows that most stock picks, like most brackets, end up busted.
Read MoreAre Hidden Fees Draining Your Retirement Savings?
In this episode, Eric reveals the true cost of investing and how to protect yourself from unnecessary financial drains.
Read MoreWhat Game Night Can Teach Us About Financial Planning
In this episode, Eric breaks down the surprising financial lessons hidden in classic board games, offering valuable insights to help you navigate your retirement strategy.
Read MoreMailbag – Upsizing, Financial Advisors & Business Owner Planning
Join us as we answer questions about the challenges of downsizing, the emotional aspects of planning for family gatherings, and the realities of transitioning into a financial advisory career.
Read MorePlanning for Kids, Grandkids, & Your Future
As many nearing retirement age are discovering, adult children and grandchildren can significantly influence financial strategies, making it crucial to understand how to navigate these relationships effectively.
Read More