Managing an Inheritance

We often have clients receive an inheritance from parents, extended family, or others who are important to them.  Often times, this process can be very emotional simply because of how hard the person worked to accumulate this wealth, and the recipient may feel that they aren't deserving of this generosity.  If you find yourself in this situation, here are some tips for managing the inheritance.

1.  Due to the emotional components involved, be prudent about making investment decisions,  don't take big risks, and invest in a balanced and diversified fashion.

2.  Think carefully before lending money to friends and family.

3.  Consider "paying it forward" to other charitable causes.

Recently, one of our clients received a large inheritance from an extended family member, and felt somewhat undeserving of the inheritance. Our team suggested a "pay it forward" approach by using a very small portion of the inheritance to fund a life insurance to help ensure that the gift would be available for both our clients and their children.  

Our clients felt this was a great way to give back the gift that was given to them, and I hope you've found this information to be useful.