Inheritance Now or Later?

You should consider the benefits of passing on an inheritance while living versus in your will. During life, our families often experience times where extra money would be beneficial to fulfill certain needs. This creates somewhat of a demand for an inheritance to be passed on now instead of waiting to pass your legacy in a will. Studies show that individuals over the age of 50 prefer to give money during life, so they can enjoy helping their children reach their goals.

Ultimately, however, you must determine if transferring wealth while alive is the right decision for you. First, you must consider which family members are in need of the money now and which can wait. Also, you must understand the consequences of a gift’s burdens, and whether you are over-giving, so that later on you are not the one that needs help. Finally, with the timing of your generosity, it is important to understand any tax consequences.

See Why Make Your Heirs Wait?, Merrill Lynch.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.