Hope for your financial life and beyond

How to Be Sure Children Should Get Your Inheritance Money

The question comes at some point in everyone’s life – “Who will I leave my inheritance too?” If you are in your 20s, the thought probably hasn’t crossed your mind yet. But it’s most definitely been thought of by people in their 40s, 50s and beyond, especially those who have a family, money and other assets.

inheritanceWe all hope to live as long as possible. With modern science advancing at leaps and bounds, life spans are being extended to 100 and beyond more and more often. But, in the end, we all know these two realities of life to be true:

1. Our death will occur at a fixed moment in time.

2. Nobody knows exactly when that moment will be.

How interesting that death brings with it aspects of certainty (we will die) and uncertainty (when?). That dualistic nature of death is fascinating. Perhaps that’s why issues surrounding death and what will happen after we are gone remain difficult to discuss. We simply don’t like thinking about anything that relates to the end of us.

But we have to think about it for there is so much at stake. Mess up our death and it could impact those left behind for generations to come. Today we will look at one aspect of death you need to consider – whether or not to leave an inheritance to your children.

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“I’m Rich!” – How to Handle a Lump Sum Payment of Money

I’m sure you’ve daydreamed at some point about how life would change if a large lump sum payment of money came your way. Say like a million dollars? We’ve all played this game and fantasized about all the good we could do for ourselves and others with that much money.

lump sum paymentFor most people, this will not happen. The better likelihood is that it will take many years of hard work accompanied by traditional saving and investing to become wealthy. That’s how most of us will reach our financial milestones.

However, people’s lives can change quickly because they receive a lump sum payment of money worth six or seven figures. How could this happen? Well, here is how and it’s not a get-rich-quick scheme.

Ways to Receive a Lump Sum Payment of Money

The following are ways a person could receive a lump sum payment of money:

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An Amazing Offer From the Coolest Inheritance Story in the Bible

Hidden Nuggets Series #55 – “And the younger of them said…Father, give me the portion of goods that falls to me.” – Luke 15:12

inheritance in the bibleInheritance in the Bible is a hot topic with the word being mentioned over 200 times. There are some unique and compelling stories that involve the assets of one generation being passed on to the next. We find everything from women receiving an inheritance – which was uncommon in the culture of the time (Numbers 27), a younger brother “stealing” it from another (Genesis 27), and a woman being redeemed in an inheritance transaction by a man who would become her husband (Ruth 4).

Fun, fun stories that show not only how lives can be changed and futures altered but the passion, tension and questions that can surround the wealth transfer process.

For my money, the most memorable passage about inheritance in the Bible didn’t even literally occur. It was a parable, a fictitious story told by Jesus in Luke 15:11-32. While the ultimate message of the story was to expose the corrupt and selfish nature of the religious leaders of the day, it brings other memorable truths that can’t be ignored.

I Want It All and I Want It Now

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8 Questions to Ask When Setting Up A Family Inheritance

family inheritanceIt’s hard enough to deal with the topic of our own death let alone what will happen to our possessions once we pass away. Setting up a family inheritance can get complex and technical.

The aftermath of what we do could lead to a potential mess as this 2012 article from Fox News demonstrates:

“Heirs of a wealthy New York art dealer were left a $65 million sculpture [named “Canyon”]…The bequest comes with a $29 million tax bill, but since the piece includes a stuffed eagle, it can’t be sold…federal law makes it a crime to possess, transport, sell or otherwise convey a bald eagle, whether it is alive or, as in this case, stuffed…placing a value on an item that cannot be sold is no easy feat. The venerable auction house Christie’s placed the value of “Canyon” at zero. The IRS initially put it at $15 million, then jumped the figure to $65 million…”

Most of us will never have to deal with numbers that large. But it’s no wonder we get confused with our heirs, the courts and the IRS to account for. It all seems like a big tangled mess.

So what should we do?

Well, the wrong answer is to ignore the wealth transfer process. With better planning the wealthy art dealer mentioned in the article above could have avoided placing this conflict in the lap of her family. Perhaps asking some relationship and technical questions would have eliminated some confusion and helped the inheritance pass with greater ease.

Family Inheritance Relationship Questions to Ask

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