Inheritance Plan

Inheritance Checklist

1. Assess Your Inheritance: It is imperative to evaluate whether a will contest needs to be filed or if there is a requirement to claim an elective share of the estate, particularly for surviving spouses.

2. Analyze Your Financial Status: Review your current financial position and ascertain how the inherited funds may be utilized most effectively. Consider potential applications, such as debt repayment, retirement savings, or funding a child's education.

3. Engage an Investment Advisor: It is advisable to hire an investment advisor who can assist in achieving your financial objectives.

4. Select Qualified Advisors: Choose suitable professionals, including attorneys, accountants, investment advisors, and insurance agents, who can provide guidance tailored to your specific needs.

5. Secure Insurance for Inherited Assets: Acquire property or casualty insurance for valuable inherited items, such as jewelry and antiques, to safeguard these assets.

6. Enhance Liability Insurance: It is prudent to increase your liability insurance coverage in order to protect against potential lawsuit risks associated with inherited properties.

7. Review Trust Documents: If designated as a beneficiary of a trust, it is essential to review the trust document carefully or consult with an attorney for clarification and interpretation.

8. Evaluate Trust Income: Consider whether the income generated from the trust will sufficiently meet your financial needs. Additionally, familiarize yourself with the trustee and any associated administrative fees.

9. Make Decisions Regarding Real Estate: If real estate is inherited, determine whether to maintain ownership or to sell the property. Should you opt to retain the property, decide whether it will be used for personal residence or rental purposes.

10. Obtain Adequate Property Insurance: Ensure that appropriate insurance coverage for the inherited property is acquired.

11. Execute Title Modifications: Make necessary changes to the property title to reflect your ownership accurately.

12. Consider Tax Implications: Be aware of the income tax and any applicable state inheritance tax consequences that may arise from receiving the inherited property. Determine whether a qualified disclaimer of the property would be appropriate.

13. Update Your Estate Plan: Revise your estate plan to incorporate your newly acquired assets, as your estate may now exceed the applicable exclusion amount and become subject to taxation.