TIPS FOR MANAGING AN INHERITANCE … · 02/03/2020 · If your inheritance is from a spouse, there...
2
March 2020 Brought to you by: Joseph J. Bustin, CFP® JBFS, LLC PO Box 858 521 Imperial Point Drive Lake Ozark, MO 65049 Office: (573) 552-8149 [email protected] www.jbfsllc.com About our firm: JBFS, LLC Joseph J. Bustin, CFP® P.O. Box 858 Lake Ozark, MO 65049 [email protected] www.jbfsllc.com Take your time. This is an emotional time...not the best time to be making important financial decisions. Short of meeting any required tax or legal deadlines, don't make hasty decisions concerning your inheritance. Identify a team of reputable, trusted advisors (attorney, accountant, financial/insurance advisors). There are complicated tax laws and requirements related to certain inherited assets. Without accurate, reliable advice, you may find an unnecessarily large chunk of your inheritance going to pay taxes. Park the money. Deposit any inherited money or investments in a bank or brokerage account until you're in a position to make definitive decisions on what you want to do with your inheritance. Understand the tax consequences of inherited assets. If your inheritance is from a spouse, there may be no estate or inheritance taxes due. Otherwise, your inheritance may be subject to federal estate tax or state inheritance tax. Income taxes are also a consideration. Treat inherited retirement assets with care. The tax treatment of inherited retirement assets is a complex subject. Make sure the retirement plan administrator does not send you a check for the retirement plan proceeds until you have made a distribution decision. Get sound professional financial and tax advice before taking any money from aninheritedretirement plan…otherwiseyoumayfindyourself liablefor paying income taxes on the entire value of the retirement account. If you received an interest in a trust, familiarize yourself with the trust document and the terms under which you receive distributions from the trust, as well as with the trustee and trust administration fees. Take stock. Create a financial inventory of your assets and your debts. Start with a clean slate and reassess your financial needs, objectives and goals. Develop a financial plan. Consider working with a financial advisor to "test drive" various scenarios and determine how your funds should be invested to accomplish your financial goals. Evaluate your insurance needs. If you inherited valuable personal property, you will probably need to increase your property and casualty coverage or purchase new coverage. If your inheritance is substantial, consider increasing your liability insurance to protect against lawsuits. Finally, evaluate whether your life insurance needs have changed as a result of your inheritance. Review your estate plan. Your inheritance, together with your experience in managing it, may lead you to make changes in your estate plan. Your experience in receiving an inheritance may prompt you to want to do a better job of how your estate is structured and administered for the benefit of your heirs. Please contact my office if we can be of assistance. TIPS FOR MANAGING AN INHERITANCE
Transcript of TIPS FOR MANAGING AN INHERITANCE … · 02/03/2020 · If your inheritance is from a spouse, there...
March 2020
Brought to you by:
Joseph J. Bustin, CFP®JBFS, LLCPO Box 858521 Imperial Point DriveLake Ozark, MO 65049Office: (573) [email protected]
About our firm:
JBFS, LLCJoseph J. Bustin, CFP®P.O. Box 858 Lake Ozark,MO [email protected]
Take your time. This is an emotional time...not the best time to be making importantfinancial decisions. Short of meeting any required tax or legal deadlines, don't makehasty decisions concerning your inheritance.
Identify a team of reputable, trusted advisors (attorney, accountant,financial/insurance advisors). There are complicated tax laws and requirements relatedto certain inherited assets. Without accurate, reliable advice, you may find anunnecessarily large chunk of your inheritance going to pay taxes.
Park the money. Deposit any inherited money or investments in a bank or brokerageaccount until you're in a position to make definitive decisions on what you want to dowith your inheritance.
Understand the tax consequences of inherited assets. If your inheritance is from aspouse, there may be no estate or inheritance taxes due. Otherwise, your inheritancemay be subject to federal estate tax or state inheritance tax. Income taxes are also aconsideration.
Treat inherited retirement assets with care. The tax treatment of inherited retirementassets is a complex subject. Make sure the retirement plan administrator does not sendyou a check for the retirement plan proceeds until you have made a distributiondecision. Get sound professional financial and tax advice before taking any moneyfrom an inherited retirement plan…otherwise you may find yourself liable for paying income taxes on the entire value of the retirement account.
If you received an interest in a trust, familiarize yourself with the trust document andthe terms under which you receive distributions from the trust, as well as with thetrustee and trust administration fees.
Take stock. Create a financial inventory of your assets and your debts. Start with aclean slate and reassess your financial needs, objectives and goals.
Develop a financial plan. Consider working with a financial advisor to "test drive"various scenarios and determine how your funds should be invested to accomplishyour financial goals.
Evaluate your insurance needs. If you inherited valuable personal property, you willprobably need to increase your property and casualty coverage or purchase newcoverage. If your inheritance is substantial, consider increasing your liability insuranceto protect against lawsuits. Finally, evaluate whether your life insurance needs havechanged as a result of your inheritance.
Review your estate plan. Your inheritance, together with your experience in managingit, may lead you to make changes in your estate plan. Your experience in receiving aninheritance may prompt you to want to do a better job of how your estate is structuredand administered for the benefit of your heirs.
Please contact my office if we can be of assistance.
TIPS FOR MANAGING AN INHERITANCE
QUOTESfrom the Masters...
MESSAGESfrom the Masters...
On Character
"Nearly all men canstand adversity, but if
you want to test a man'scharacter, give him
power."
-- Abraham Lincoln
"Weakness of attitudebecomes weakness of
character."
-- Abraham Lincoln
On Excellence
"The quality of aperson's life is in direct
proportion to theircommitment to
excellence, regardlessof their chosen field of
endeavor."
-- Vincent T. Lombardi
"Happiness includeschiefly the idea of
satisfaction after fullhonest effort. No one
can possibly be satisfiedand no one can be
happy who feels that insome paramount affairshe failed to take up the
challenge of life."
-- Arnold Bennett
"The difference betweenfailure and success is
doing a thing nearly rightand doing a thing
exactly right."
-- Edward Simmons
ARE YOU AN OPTIMIST OR A PESSIMIST?by Chris Widener
I have been giving some thought lately to optimism and pessimism. Basically, these are attitudes.Attitudes that shape and formulate our entire existence. I mean, have you ever met a happypessimist? Of course not.
In short, our optimism or pessimism is this:
The way we interpret the pastThe way we experience and view the present
The way we imagine the future
Have you given much thought about how your attitude, whether you are an optimist or a pessimist,affects you?
What is optimism? It is a belief that things in our past were good for us, even if that means theywere hard and taught us lessons. It is also the belief that things will be better in the future.
Here are some contrasts between optimism and pessimism and how they affect us:
Optimism breathes life into you each dayPessimism drains you
Optimism helps you to take needed risksPessimism plays it safe and never accomplishes much
Optimism improves those around you
Pessimism drags them down
Optimism inspires people to great heightsPessimism deflates people to new lows
There is only one way that optimism and pessimism are the same and that is that they are bothself-fulfilling. If you are an optimist, you will generally find that good things happen to you. And ifyou are a pessimist, you will find yourself in the not-so-good situations more often than not.
So can a person just become an optimist? Yes! We can choose to look at the world any way wewant to. We can choose to look at the world and think the worst, or we can tell ourselves the goodthings about each situation. As you find yourself beginning to view the world through the eyes ofan optimist, you will reap the rewards listed above, and so will the people around you.
Have you ever met a successful pessimist? Become an optimist and see your world changebefore your eyes!
The purpose of this newsletter is to provide information of general interest to our clients, potential clients andother professionals. The information provided is general in nature and should not be considered completeinformation on any product or concept described.
For more complete information, please contact me (Office: (573) 552-8149).
Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer,Member FINRA/SIPC Investment Advisor Representative, Cambridge Investment Research Advisors,Inc., A Registered Investment Advisor. Cambridge and JBFS, LLC are not affiliated.
Published by The Virtual Assistant; © 2012 VSA, LP
