Important COVID-19 Update: We offer consultations via phone, video, or in-person. Here’s information about our process during this time.

The Heritage Law Center, LLC Blog

Handling Your Inheritance

POSTED ON: October 8, 2019

Receiving a large inheritance can change your life for the better. But if it’s not handled properly, you might find yourself with less money than you started with. That’s because that sudden windfall can cause you to change your spending habits by buying more expensive items, going on costly vacations, etc. Before you know it, you might find that the money is used up and you’re actually left with some debt because you got caught up in the excitement of having such an inflow of cash.

The best move you can make with a large inheritance is to get guidance from a financial advisor, a tax professional, and an estate planning attorney.

  • A financial advisor can analyze your financial situation and the true value of your assets, and help you figure out how much money you’ll use immediately and how much you’re going to put aside for your future goals. Do you plan on paying for a child’s education or buying a new home? What’s your retirement plan? You can invest a portion of your inheritance so you will have the money to meet your goals when needed.
  • A tax professional, like a CPA, can help you understand any inheritance tax that may affect your inheritance. While Massachusetts doesn’t have an inheritance tax, if you’re inheriting money from someone who lived out of state, you’ll need to check the local laws. There are states where all in-state property is subject to an inheritance tax regardless of where the heir lives. Also, a tax professional can help reduce your tax liability in future years.
  • Another important move is to make an estate plan. A good estate planning lawyer can help you protect your assets, so you can leave an inheritance to your loved ones. An estate plan can help you avoid unnecessary tax and probate fees down the road.

Contact us at 617.299.6976 or for a no-obligation, free estate planning consultation. We’ll talk about your needs and focus on the estate planning tools and strategies to help you meet your specific goals.