Family inheritance is not just about properties. It could include traits and personalities. 

It is essential to understand this because it can affect how a beneficiary handles the wealth passed on by parents or other family members.

Over the years, there have been stories of people who blew away their inherited wealth, and certainly, there will still be more of these people.

If you are planning to leave something for your children or you are a child expecting something from your parent after their death, read on as we highlight how to maximize family inheritance.

Tips for parents

For a starter, you need not worry about estate tax if the wealth you plan to leave for your children is not up to $12.06 million.

You have to worry about how to keep your wealth within the family and, at the same time, ensure your heirs do not squander the profit of your life’s labour.

Consult

There are lots of technicalities involved in the proper planning of estate transfer. Not putting things in order before your demise may breed a lifetime feud among your heirs.

Consult the service of a firm with competent estate planning lawyers for the best advice on how to plan your estate distribution effectively.

Draw up a will

Writing a will does not insinuate you are ready to die anytime soon. It is instead a directive on how your assets should be shared in case you die. Death is something no one can predict its arrival.

If you fail to write a will, your estate sharing will be determined in a probate court. This means someone else will decide how your wealth should be shared.

With a will, your heirs would only need to approach the probate court for review and validation.

Set up a trust

If you are bothered about what your heirs will do with your money when you are gone, consider setting up a trust.

A trust can also shield your wealth from estate tax. You will hand over the estate to a trustee who manages it and secure it until the time you stipulated it should be released to the beneficiary. 

Tips for beneficiaries

Inheritance can be a life-changing opportunity and at the same time, if not well managed, it could be the worst mistake of your life.

Don’t bank on it

If you are expecting an inheritance from a relative, do not base your life’s plan on it. It can come, and it may not.

Also, you never know the kind of condition they would demand you meet before you can access it.

The benefactor may also spend most of the wealth on medical and nursing home bills. It is also possible they get swindled or change their mind instead donate all to charity.

Assess your present net worth

Before the money is deposited into your account, first assess your financial wealth. Evaluate your total debt, if any, and devise a repayment plan.

Your cash flow can also help you decide on what to invest in and the expenses to cut.

Also, do not make the mistake of quitting your job, unless there is no other alternative, such as if you are starting a new business with the money.

In addition, confirm whether the inherited funds will be immediately disbursed or, after some time, to plan your finance efficiently.

Financial and legal plan

When you get your share of an inheritance, take your time before spending a dime. Consult a financial advisor for the best ways to spend the money and if you might need to pay any tax. It is alright if you are confident enough in your own financial decisions.

Sometimes, details of inheritance may need a legal expert’s interpretation. You may consider hiring a lawyer who specializes in estate law.

Things to consider before hiring an estate lawyer

Speciality

An attorney with knowledge of every law is not the right option for you. You need someone who deals in laws related to your case every time.

Only hire an estate lawyer with a considerable number of years in the field. 

Familiarity with local law

The law concerning inheritance may vary from one state to another or even within areas of the state. Choose a lawyer familiar with the local law to avoid any future legal mistakes.

You can also ask for a lawyer with a good reputation in your locality's estate law.

Communication

You should feel comfortable around your lawyer and also be able to connect when you need to relay any information. 

Fee

Make sure you get a full breakdown of the service cost before hiring. The written fee agreement will specify the amount you are expected to pay and the type of service the lawyer is expected to deliver.