While we talk frequently about the need to plan your estate, rarely do we mention the need to protect an inheritance. Of course, that brings us back to planning your estate!
Baby boomers are about to hit the life lottery, receiving a combined $8.4 trillion, according to Business Insider.
Protecting your inheritance in New York is one of the keys to securing your financial future.New York estate planning lawyers understand how important it is to protect an inheritance. In some cases, it is the first time a client has dealt with a sizable sum of money. In all cases, the goal is to make that money last and, perhaps, pass it on to the next generation.
Forbes reports that baby boomers have already gotten an estimated $2.4 trillion in inheritances. This means that, on average, each inheriting household should be expecting nearly $300,000.
Forbes.com offers baby boomers these pointers to help plan for your future and maintain financial stability:
-Treat your inheritance as a gift passed on. It’s okay, and probably preferred, to become emotionally attached to it. This can help keep you from overspending and splurging.
-Don’t just blow it, and then regret it; think about it carefully.
-Use it to make an emergency fund if you don’t already have one equal to at least six months of necessary funds. It’s recommended that an emergency fund should be kept in safe and liquid investments.
-Pay off credit cards, car loans or your mortgage. Remember, though, to consider the tax angles. Mortgage interest is deductible for taxpayers who itemize. Just make sure these options work in your favor.
-“I encourage people to look at things in one great big bucket. These are assets to serve you. How are you going to invest them to serve you best and to accomplish what you want?” says Myra Salzer, author of the book Living Richly, a guide for inheritors who are living off generous inheritances.
Making an appointment to sit down and talk to an estate planner in New York could be the best money you spend. Tax savings, real estate transfer considerations, and your own plans for the ultimate distribution of your wealth are all issues you should discuss with a professional.
New York Probate Attorney Jules Martin Haas, Esq. has been representing clients in Probate and Estate Settlement matters in Manhattan, Queens and Brooklyn for the past 30 years. If you or someone you know is involved with or has questions about New York Probate or an estate planning issue, please call me at (212) 355-2575.