Have you thought it all through?

After finally getting his estate planning done Marty was told by his advisory team he is “all set.” He settled on leaving $2 million to each of his two children. Now he’s all finished with the inheritance discussion. Or maybe not.

His daughter and her husband earn $130,000 a year. The $2 million at just five percent income each year on the money will almost double their current income. Sounds nice… but is doubling the lifestyle to which they are accustomed the right thing to do?

Marty’s other child is a 24-year-old son who hasn’t yet found his way and earns about $15,000 a year. With a $2 million inheritance his lifestyle would grow by about ten times what he is accustomed.

The right amount of inheritance is not merely a financial decisions. There are more essential questions that need to be answered:
• Is each child responsible enough to handle the proposed inheritance?
• Does the proposed amount help or hurt their ambitions in life?
• Has the effect on the spouse been considered?

These are just a few of the questions left unanswered for Marty. The most vital question to answer before the dollars are even considered is this: Is the purpose of the inheritance to provide an enhanced lifestyle or new opportunities?

No matter how little or how much the inheritance there is no easy answer and it is certainly more than than simply about the dollar amount. Like most, Marty still needs to think through the implications of the bequest – but most parents rarely do.

What are the possible implications from the inheritance you have planned? Are there some blind spots out there– maybe ones you haven’t even considered?
Wealth is more than money. Don’t just plan for your future, live it right now.

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Omaha, NE 68127
(402) 333-8751
Steve@SteveCasto.com

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Independent investment adviser registered with the State of Nebraska. Information presented herein is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Viewers of the information contained herein should be aware that any action taken by the viewer based on this information is at their own risk. This information does not address individual situations and should not be construed or viewed as any type of individual or group recommendation. Be sure to first consult with a qualified professional before implementing any strategies discussed herein.