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: Affording Disney, Retirement Income & Leaving Job Benefits
In this mailbag episode, Eric answers real questions from listeners navigating big life transitions. First up, a soon-to-be retiree wants to take the whole family to Disney World, but how do you plan a big trip like that without derailing your retirement timeline?
Read More
DIY Planning: Where It Works and Where It Can Go Wrong
DIY works great for fixing up the house or building a bookshelf, but does it hold up when you’re planning your retire-ment? In this episode, Eric unpacks the pros and pitfalls of do-it-yourself financial planning, especially as you transition from the “saving” years to the “spending” years.
Read More
Age 62: An Important Retirement Milestone
Turning 62 isn’t just another birthday, it’s a milestone that kicks off some big retirement decisions. In this episode, Eric breaks down what reaching this age really means, from deciding when (or if) to claim Social Security to navigating income limits that could reduce your benefits. We’ll also explore how your health, family longevity, and lifestyle goals should influence that decision.
Read More
The Financial Junk Drawer: What’s Hiding in Your Retirement Plan?
Most of us have a junk drawer stuffed with random odds and ends we forgot about. But what about your financial junk drawer?
Read More
Too Much Financial Info? How to Filter the Good from the Bad
Retirement isn’t just about financial spreadsheets, it’s about preparing your whole life for a new chapter
Read More
Five People You Meet In Retirement
Retirement isn’t just about financial spreadsheets, it’s about preparing your whole life for a new chapter
Read More
The Gray Zone of Retirement Planning
When it comes to retirement, some decisions aren’t as clear-cut as they seem. Should you pay off your mortgage early? Convert to a Roth IRA? Claim Social Security at 62 or wait until 70? The math might say one thing, but your emotions, goals, and personal circumstances often pull you in another direction. In this episode, Eric tackles the “gray areas” of retirement planning, those tricky crossroads where logic and lifestyle collide.
Read More
What The Psychology of Money Reveals About Retirement
We all like to believe we’re rational when it comes to money, but our emotions often tell a different story. In this episode, Eric unpacks key insights from Morgan Housel’s The Psychology of Money and explains how our upbringing, fears, and life experiences shape how we save and spend. From the fear of running out to the trap of always wanting more, Eric explores why logic alone isn’t enough to build a solid retirement plan.
Read More
The Services We Offer (That You Didn’t Know You Needed)
Most people assume all financial advisors offer the same services, but that couldn’t be further from the truth. From taxes to Social Security, Medicare to estate planning, the depth and quality of your advisor’s services can make or break your retirement plan. In this episode, Eric walks through the often-overlooked services a true, holistic advisor should provide and why they matter.
Read More
How to Stay Calm When the Market Isn’t
Thanks to a variety of economic and geopolitical circumstances, many people are experiencing some form of financial anxiety right now.
Read More