Financial Planning for Beneficiaries Who Inherit Money

Lundervold Financial helps you feel confident in the financial strategy for your inheritance, no matter how small or large.

Have You Inherited Cash, Stocks or Other Investments?

Lundervold Financial can help you with long-term financial planning for inherited wealth and assets you receive as a loved one’s beneficiary. We all want to leave something to our families and hope that it helps them grow their own personal wealth.

However, without a legacy plan in place, you may not have considered all of the options. Many people may be unaware of how to put a plan into place when they receive money as a beneficiary.

Few ever think “Spend it as fast as possible and grow new debt as well,” yet it can occur. It happens when people do not have a plan for the assets they receive as a beneficiary. When expecting to receive money, some of the most common questions are:

  • Should I use the money to pay off bills?
  • Should I invest?

The fact that you are reading this right now tells us you are among those asking such questions, that you are interested in making a plan for the money or stocks. Decide now how the extra funds could be used to help provide you with a better financial future.

Some questions to ask yourself are:

  • Should you put it all into your 401(k)?
  • CAN you put it all into your 401(k)?
  • Must you put some into a traditional IRA or Roth IRA?
  • Should you invest in stocks? Bonds? Municipal funds?
  • How much should you use to treat yourself?

Yes, you may want to treat yourself at least a little. This could help you be more determined to stick to your plan. And naturally, if you need help putting together a financial plan for your money you receive, let us know. We can help.

*Lundervold Financial does not provide estate planning, but can work alongside our clients’ estate planning attorney. If you are looking for an estate planner, we can refer you to professionals who provide the following services: trusts, probate, charitable giving, estate planning, and tax planning.

What to Do With Inherited Investments

When you inherit investments, there are two basic options:

  1. Keep the investment
  2. Cash in the investment

If you decide to keep the investment, the choices you make will depend on the type of investment.

  • If the investments are stocks, you may choose to self-manage the funds or have them managed. And while inherited stocks are not generally taxable, the inheritance could put you into a different tax bracket.
  • If the investments are properties, you may want to get a complete assessment of each, perhaps liquidating some and using the funds for other investments.
  • If the investments are bonds, you may have to await their maturity date before deciding how to proceed.
  • Then there are trusts, insurance proceeds and others.

Whatever the investment, there are laws in place that will determine what is done with it at the time of inheritance. Incorporated into this, you may even want to invest the inheritance money in a way that could potentially save you taxes.

If you do not already have a financial plan, you may want to speak with a financial planner. You may also need other professionals, such as an attorney, accountant or certified tax advisor. We can help refer you to a professional who can plan and provide suitable recommendations for other services as needed.

Either way, you likely have many questions. And you have many options. We can help you with both.

What to do with Inheritance Cash

“I just inherited money. Now what?” These are common thoughts when people suddenly inherit money. Some people think almost instinctively that they should be like a squirrel that hides extra nuts for the winter.

Some think they should invest … use the extra funds for their financial future. Yet, maybe there is that pull to treat yourself, to buy that fancy car you’ve always wanted, to take that vacation, to upgrade the house and so on.

Of course, what you choose to do with your inheritance money is up to you. You know your lifestyle and goals better than anyone else. But if your goals involve your retirement plans, you may want help from a professional on your plans.

At Lundervold Financial, we view every client as unique. This means your financial situation is unique. This also means that you may benefit from a custom, personalized financial plan. This plan will help you create a strategy for how to use your inheritance and will provide a roadmap to help you pursue your dreams and goals.

Unlike stocks, cash is liquid and can be easy to go through quickly. At a minimum, when you inherit cash, you may want to consider setting up an account separate from your personal checking and savings accounts. This can help you to have better control over the funds until your plan is in motion. Be sure to consult a qualified attorney regarding your individual situation.

Meet with Lundervold Financial

For more information about our clients and who we help, contact us or browse our upcoming events for new and existing clients.

Or give us a call at 651.209.1906