How to Prepare for Wealth Transfer Mercer Advisors, Epstein and White

When someone you love passes away and they leave you an inheritance, there are a few things you may want to keep in mind as you move through the grieving process. We understand it can be a very difficult time, so we have some recommendations and explanations to hopefully help make the financial side of things a little easier for you.

  1. The definition of wealth transfer:

Wealth transfer is the process of moving money and assets from one person to another, usually because someone has or may pass away soon.[1]

  1. You don’t have to do anything right now.

Even if your inheritance is significant, you don’t have to immediately dive into what you will do with the money, how you’ll invest it, or what debts you’ll pay off. The last thing you probably want to do when you are emotionally overwhelmed is make serious financial decisions. So, don’t feel obligated to use the money right away or make a decision about it right now.

  1. When you’re comfortable, consider paying off debts.

One of Warren Buffet’s main investment strategies is to pay off your debts (especially credit card debt).[2] Because the APR on credit cards and other debt is so high, you will rarely find a higher rate of return on regular investment strategies.[2] That is why Buffet recommends paying down debts as a means of wealth protection and something to consider when it comes to estate and legacy planning.

  1. If you inherit a house, consider what you’re going to do with it.

When you inherit a house, you need to decide if you are going to live in it, rent it, or sell it.[3] Keep in mind there are various costs and taxes associated with each option, so the best option for you may vary based on your circumstances.

One thing that you may find helpful is considering a financial professional to help you with managing your inheritance. If you are emotionally and intellectually drained by the grieving process, a financial professional can at least take some of the burden off you by providing tailored advice and suggestions based on your situation. Click HERE to reach out to one of our professionals at Mercer Advisors, Formerly Epstein & White today for a conversation about your financial situation today.

 

This information is provided as general information and is not intended to be specific financial guidance.  Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives. The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed.
Epstein & White is a tradename. All services provided by Epstein & White investment professionals are provided in their individual capacities as investment adviser representatives of Mercer Global Advisors Inc. (“Mercer Advisors”), an SEC registered investment adviser principally located in Denver, Colorado, with various branch offices throughout the United States doing business under different tradenames, including Epstein & White. Information contained herein is for informational and illustrative purposes only and general in nature. It should not be considered investment advice or a recommendation to buy or sell any type of securities or insurance products and no investment decision should be made based solely on any information provided herein. Investing involves risk, including the possible loss of principal. Diversification and asset allocation does not ensure a profit or guarantee against loss. We provide this information with the understanding that we are not engaged in rendering legal, accounting, or tax services. We recommend that all investors seek out the services of competent professionals in any of the aforementioned areas.