|Page: Can I Inherit from a Will Early?|
Early inheritance means beneficiaries receive some or all of the testator's assets or property before they die. There are also tax benedits.
Jasper L. Edwards
This may also be done before you pass on in the form of an early inheritance plan.
Can I Inherit From A Will Early?
The term inheritance usually conjures images of a will being read after the death of a loved one. However, some people prefer to have an early inheritance plan for their beneficiaries. This means that they can receive the testator’s assets or property before they die. According to a recent study, a majority of wealthy individuals felt it was important to leave some form of early inheritance for their adult children.
Even though it may see like mere matter of preference, there are financial and emotional pros and cons of receiving an early inheritance, some of which include:
An early inheritance helps to reduce the size of an estate. As a result, you can avoid certain kinds of taxes. This means that more money will reach your pocket instead of going to the government in the form of taxes.
Enjoying it with loved ones
An early inheritance allows you to share your wealth with your loved ones before they pass on. They can actually witness the fruits of their labor. Once you receive it, you can pay for family vacations, put a down payment on your dream home or secure your children’s college fund.
You could end up broke
One of the main problems associated with an early inheritance is the possibility of using it too quickly. If you don’t have a viable financial plan for your inheritance, you can end up broke in a very short time. You must ensure that all of it is allocated to appropriate uses. In addition, it’s extremely important that you don’t spend it on your friends.
Everybody knows that mixing family with money can raise some very controversial issues, especially when it comes to an early inheritance plan. It usually causes resentment amongst those loved ones who possibly feel left out. In most cases, experts recommend that everyone comes together for a private hearing with the testator before any decisions are made.
If you happen to be in a complicated family situation, and don’t want to deal with the potential fallout, you should probably reconsider your plan to create an early inheritance plan.
At the end of the day, the issuing of an early inheritance will always depend on the testator’s wishes. However, it’s extremely important that you consult a financial professional, if you decide to do so.
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