Estate & Legacy Planning FAQs

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?

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Financial Wisdom from Mark Twain

June 13, 2024

In the latest episode of the Retirement Ready Podcast, Eric invites us to explore the timeless wisdom of Mark Twain and how it applies to modern financial planning. Mark Twain, known for his wit and keen observations, offers quotes that are surprisingly relevant to today’s financial landscape. Eric takes these quotes and translates them into practical advice for those planning their retirement.

Read More

Understanding Bonds in Today’s Market

June 6, 2024

Are bonds really the safe investment we’ve always been told they are? What percentage of assets should a retiree or pre-retiree hold in bonds? In today’s episode, Eric addresses some of his most frequently asked questions about the world of bonds…

Read More

Understanding Your Financial Statements

May 30, 2024

Financial statements can often feel like a foreign language, filled with jargon and numbers that seem to have little relevance to your everyday life. However, understanding these documents is crucial for effective retirement planning. In the latest episode of the Retirement Ready Podcast, Eric breaks down the essentials of reading and interpreting your financial statements.

Read More

From Graduation to Retirement

May 23, 2024

This one goes to the grads! Whether you know someone graduating high school, college, or even preschool, graduation marks a new stage and season in life. Similarly, retirement is a new chapter in life. It’s a time of change, celebration, and sometimes, uncertainty. On today’s show, we talk through the similarities between leaving school and entering retirement.

Read More

401(k) Mistakes

May 16, 2024

Your 401(k) likely plays a major role in your retirement savings. That’s why it’s important that it’s set up and functions in the way that’s most beneficial to you. Following our last podcast about beneficiary mistakes, now we focus on common mistakes people make with their 401(k).

Read More

Beneficiary Mistakes

May 9, 2024

In this episode of the Retirement Ready Podcast, Eric guides us through the critical yet often overlooked details of beneficiary designations. Learn the simple yet vital steps to prevent beneficiary blunders that could lead to unnecessary headaches for your heirs. Eric calls these errors “low hanging fruit” because they’re easy to fix yet can save your family from future heartache.

Read More

How Emotions Can Impact Your Retirement Plan

May 2, 2024

Dive into the world of financial emotions in this episode with Eric Peterson. Discover how greed, fear, hope, and pride can make or break your investment strategy. Eric unravels the complexities of managing emotions to ensure a secure and enjoyable retirement.

Read More

Retirement Planning Statistics

April 25, 2024

Retirement is closer than you think, but are you ready? With a staggering number of people lacking confidence in their retirement savings, Eric shares the misconceptions people have and what mistakes can derail someone’s financial future. Many people feel inadequate when it comes to what they have saved in their nest egg, uninformed about the pitfalls of target date funds, and unprepared about the reality of leaving the workforce earlier than expected.

Read More

Mailbag: Should I Fire My Broker?

April 18, 2024

Navigating life’s financial crossroads can be tricky, especially when it involves your financial future. In this episode of Retirement Ready, Eric addresses these complex issues head-on. How do you best evaluate your broker and your investment performance against the S&P 500? Eric says a lot of that comes down to setting expectations and understanding the risks. Then, Holly wants to know what to consider before making a midlife career change.

Read More

Putting It Off

April 11, 2024

We are all guilty of procrastinating from time to time. Financially speaking, though, this can get you into a lot of trouble. Let’s talk about the areas where it might feel better to kick the can down the road.

Read More

Leave a Comment