Costly Mistakes To Avoid When Inheriting Money

Retired-ish

I discuss the potential pitfalls to watch out for when inheriting assets from a parent. Receiving an inheritance isn’t the same as maximizing an inheritance, as you could lose a significant portion if you’re not prepared.

More specifically, I discuss:

• What are common types of assets that are passed down to the next generation?
• What are the common pitfalls to watch out for when inheriting property?
• How should assets be titled before they are passed down?
• What impact do trusts have on an inheritance?
• How do taxes work when inheriting assets?
• What are the common pitfalls to watch out for when inheriting retirement accounts?
• What are the common pitfalls to watch out for when inheriting non-retirement accounts?

Resources:

• Retired-ish Newsletter Sign-Up
• Begin Creating Your Own Financial Map After The Loss of A Parent
• Free 4-Step Retirement Analysis for Ages 50+
• Ask Cameron A Question!

The key moments in this episode are:

00:00:00 - Introduction and Importance of Understanding Inheritance

00:00:57 - Projected Increase in Inherited Wealth

00:02:12 - Assumptions about Parental Financial Planning

00:03:36 - Common Types of Inherited Assets

00:05:27 - Pitfalls of Inheriting Property

00:14:28 - Considerations for Inheriting Property

00:15:48 - Retirement Accounts and the Secure Act

00:19:37 - Tax Considerations for Inherited Retirement Accounts

00:21:28 - Handling Non-Retirement Investment Accounts

00:25:35 - Importance of Understanding Inheritance Planning