What You Should Know About Leaving an Inheritance

Today’s Prep:

Estate planning is just one piece of a comprehensive retirement plan but it’s an important one because you only get one opportunity to get it right. The problem is many individuals have very little experience with inheritances and often make mistakes when handing them down or receiving them. Let’s try to change that today by informing you about inheritances and the steps you need to take.

(Click the featured times below to jump forward in the episode)

 

Equipping Points:

There are two sides to every inheritance and mistakes can be made on either if people aren’t prepared adequately to handle the wealth.

We’ve seen a number of common missteps people make that end up costing them and their loved ones. No one wants to see the IRS benefit the most from an inheritance so you need to make sure your finances are in order.

On this episode of the Retirement Ready podcast, we’re going to talk all about inheritances and help you understand where mistakes are often made and how tax implications can play a big part in your planning strategy, especially now that the SECURE Act is in place. Now, more than ever, you should be paying attention to your estate and how you want to maximize your legacy.

Then there’s the other side of the inheritance. If you’re fortunate enough to receive this gift, how prepared are you to put it to work for your retirement? Many people don’t know the first step to take when they receive money and it ends up turning into frivolous spending. Don’t let that happen to you or your loved ones.

If you think you might receive an inheritance or you have plans to pass down your wealth, this episode should valuable to you. We want to help you protect your legacy and set your family up for a secure future.

Listen to the full episode or click on the timestamps to skip around to different topics.

[0:49] – Let’s tackle the biggest questions around an inheritance.

[1:09] – First, what about taxes. What implications are there with an inheritance?

[1:35] – Iowa does have inheritance tax if it comes from outside of a ‘straight line.’

[2:21] – Here’s what happens if someone leaves you an IRA or 401k.  

[3:55] What are some of the changes coming from the SECURE Act relating to inheritances?

[5:34] – These are the common mistakes people make with inheritances.

[7:33] – Some companies allow a per Stirpes designation. Here’s how that works.

[8:46] – Are there some common mistakes on the receiving end of an inheritance

 

 

Related Resources:

Retirement Savings Options: IRA Contributions & Roth Conversions

Understanding The SECURE Act, Part 1

Understanding The SECURE Act, Part 2: Stretch IRAs

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

Translating Financial Jargon

February 25, 2021

Do you know the difference between large cap and small cap funds? What are basis points? This episode will discuss various financial jargon to help translate what these really mean.

Read More

Financial Fill in the Blank

February 18, 2021

What’s the best way to not run out of money in retirement? What are most people worried about when retirement planning? Eric fills in these blanks in today’s episode.

Read More

What to Know About Biden’s Initial Executive Orders

February 11, 2021

Let’s take a look at some of Biden’s executive orders so far in his first few weeks. How could they alter your financial plan?

Read More

Mailbag: Retirement Planning With Separate Bank Accounts

February 4, 2021

From managing your income as a contract employee to managing your income in retirement, Eric answers three questions from the mailbag in today’s episode of the podcast.

Read More

Estate & Legacy Planning FAQs

January 28, 2021

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.

Read More

What Does Mark Twain Have to Say About Your Financial Plan?

January 21, 2021

What financial wisdom can we glean from the sayings of Mark Twain? Believe it or not, many of these quotes are quite relevant today.

Read More

New Year, New Ideas to Consider

January 14, 2021

We all like the idea of a fresh start in the new year. What changes are already underway? Or, what changes might be unwelcomed when it comes to your retirement plan?

Read More

Mailbag: Should I Use My Severance Package to Pay Off the House?

January 7, 2021

Whether you want to learn more about using your HSA or trying to make strategic use of your severance package, Eric answers three questions from the mailbag. Do any of these questions relate to your situation?

Read More

Things Your Advisor Should Be Doing

December 30, 2020

What kind of decisions are you making alongside your financial advisor? How do you know if they are doing everything you need when it comes to creating and implementing a retirement plan? Eric talks through what you deserve from a financial advisor and how his team works with clients to meet their needs.

Read More

The Three Worlds of Money

December 23, 2020

Do you know the three worlds of money? Where does the bulk of your money live? Is your money appropriately balanced across all three worlds? We’ll break it all down on this episode.

Read More

Leave a Comment