Many people expect to get an inheritance from a parent or grandparent. What a lot of individuals do not understand is that they might have already gotten their inheritance in the form of an “intra-family cash transfer.” This means that the parent or grandparent might have already given away some of the potential inheritance money in the form of financial assistance. A person might have had an emergency bill or mortgage payment that they needed help with. If a person gives away more of their money during their life there will be less money left over after death. Intra-family cash transfers could have some tax benefits, but there could also be a downside of reducing an heir’s retirement readiness.
See Ruth Davis Konigsberg, You May Have Already Spent Your Inheritance, Time, June 22, 2015.
