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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:
Pros
Tax benefits
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.
Cons
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.
Family conflicts
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.
RESOURCE BOX
Free Wills to Print provides detailed information on Free Wills, How to Write a Will, Last Will And
Testament, Living Wills and more.
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