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.

(Click the featured times below to jump forward in the 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

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