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Expecting an Inheritance? It’s Time to Talk to a Fee-Only Financial Advisor

An inheritance has the potential to significantly impact your financial future. This sudden influx of wealth can be life-changing and overwhelming—knowing how to manage it wisely and make the most of the opportunity it presents is critical.
Interestingly, many people who are beneficiaries of an inheritance are re-evaluating who they trust to guide them through their journey. A recent survey by Equitable found that only a third of millennials and Gen Xers who expect to inherit significant assets plan to stay with the advisor who worked with the deceased. And it’s not a rejection of advice—81% of respondents actually plan to work with an advisor—they simply want someone who understands their unique goals and values and who is the right fit for them, not just their predecessors. Choosing the right advisor can help you turn your dreams for a more secure financial future into a reality.

Considerations for Managing an Inheritance

Receiving an inheritance often requires you to make significant decisions that can impact your finances both now and in the years to come. You might find yourself navigating not only the emotional aspects of this change but also the responsibilities and complexities that come with managing newly acquired assets. Here are some key considerations that you may face:

  • Balancing Short-Term Choices with Long-Term Goals: It’s natural to want to act quickly, but decisions like paying off debt or making large purchases can have lasting effects. Consider how each choice aligns with your long-term financial picture, and never feel rushed into making a decision.
  • Navigating Tax Complexities: Different types of inherited assets come with unique tax implications. Addressing these early and planning for them in an efficient manner while giving consideration to your entire financial picture, can help you avoid costly surprises and enable you to keep more of the wealth you inherited.
  • Aligning with Your Financial Vision: It is likely that your financial goals will differ from those of the person who left you the inheritance. You will want to think about how you want this new wealth to support your vision for the future.

How a Financial Advisor Can Help

An experienced financial advisor can play a critical role in helping you manage an inheritance in a way that aligns with your specific goals and life circumstances. While the deceased may have had clear investment objectives or an established risk profile, your situation is likely to be completely different, and, as a result, your needs might differ substantially. Here’s how a financial advisor can guide you:

  • Defining Goals and Risk Tolerance: According to the Equitable survey, 88% of individuals who expect to inherit money, value an advisor who takes a holistic approach to wealth management and understands their life beyond finances. That’s why a good advisor will start by understanding what you hope to achieve in both the short- and long-term and assessing your personal risk profile. An advisor will ask thought-provoking questions that will help you envision what you want your financial future to look like.
  • Comprehensive Financial Planning: After constructing a comprehensive financial plan that addresses a myriad of issues, including cash flow planning, risk management, estate planning, college funding, and retirement planning, advisors can then establish and manage an investment portfolio that is consistent with your risk profile and designed to help optimize how your assets are working for you.
  • Tax-Efficient Strategies: Advisors work with you to identify strategies that may help you retain more of your inheritance by minimizing taxes. This could involve tax-loss harvesting, shifting assets within a tax-advantaged structure, or planning withdrawals to reduce tax impact.
  • Life-Stage and Estate Planning Adjustments: Receiving a significant inheritance may require updating your estate plan, reviewing insurance coverages, and even rethinking current savings strategies. An advisor provides support as you adapt to this life-changing event, helping you address both the immediate and potential long-term opportunities and challenges it brings.

Why Work with Core Wealth Management: A Fee-Only Fiduciary Advisor

Choosing to work with a fee-only fiduciary advisor helps to increase the likelihood that you receive transparent, personalized guidance that genuinely aligns with your best interests. Core Wealth Management is a Jupiter, FL-based wealth management firm with a team of Certified Financial Planner® (CFP®) professionals dedicated to building lasting relationships with our clients. Understanding your unique goals and needs is of paramount importance as we know that financial planning isn’t just about numbers, but about supporting your vision for the future.

Connect with us today to learn how we can help you take full advantage of the opportunities an inheritance brings, aligning the decisions you make today with your goals for the years ahead.

Core Wealth Management is a fee-only wealth management firm located in Jupiter, FL. Our CFP® professionals provide investment management, financial planning and advisory services, while always strictly abiding by the highest fiduciary standards. For more information, contact us today at 561-491-0231.

Jackie Goldstick, CFP® is the Principal and Director of Financial Planning at Core Wealth Management. She is a member of the National Association of Personal Financial Advisors (NAPFA) as well as the Financial Planning Association (FPA).

The material provided is for informational purposes only and should not be construed as financial, legal, or tax advice. All investments carry risks, including the loss of principal, and we encourage you to consult a qualified professional for personalized guidance. Click here to view our entire blog disclosure.