How To Continue A Legacy With An Inheritance

There are two sides to every story. 

An inheritance is a wonderful gift but it is also marked by a time of loss and grief. Balancing these conflicting realities can be difficult for many people, leaving them feeling lost and unsure of how to proceed. But that doesn’t have to be the only side of the story we talk about.

In our minds, here at Legacy Wealth, we view inheritances as more than a gift and a burden, we also see them as a chance to continue to build and grow the legacy your family has passed down. Today, we want to talk about inheritances in this new light—the light that looks kindly on the past and burns bright for the future.

Understand the basics

An inheritance can come in many forms such as stocks, real estate, insurance, and other assets. In essence, an inheritance is a sum of money or security passed down to someone after a loved one’s passing.

But an inheritance is much more comprehensive than crowding around a living room to hear what was left to you in a will. The process is intricate and often involves probate, lawyers, court, and sometimes estate taxes as well. All of these moving pieces can be overwhelming, making it important to seek out financial and legal counsel to help you navigate through the process.

The biggest roadblock in this process most often comes from the expectations or lack thereof from the giver to the receiver. Talking about estate planning is never easy. The delicate nature of the subject leaves many families to avoid it altogether, which can cause added confusion or frustration to an already complex system. 

By having open, honest conversations with your loved ones about their estate plan, you will be better able to prepare for the things coming your way. You will be able to listen to your loved one’s wishes for their legacy and can then take that information and work to continue that legacy each and every day for generations until it becomes part of your family’s greater story. 

So, how can you do that?

Build a path

Many people who receive an inheritance wish to honor their loved one’s memory and use the gift in a way that would make their late relatives happy. But continuing a legacy isn’t about preserving a house or using the money in the exact same way that your loved one did during their life. 

Continuing a legacy is really about keeping the spirit and character of your family alive through the things that you do. You might not be interested in keeping the family estate, but your family’s legacy doesn’t stop at the grand doors, rather it’s what is represented inside. Maybe by selling the estate, you would be able to donate a portion of the funds to a charity who takes care of the homeless or sends food to those in need, whatever cause means the most to you and nod’s to the generous nature of your loved ones. Your inheritance should be adapted to fit your goals, values, and objectives. 

When looking at an inheritance from this lens, it can be really freeing because you can now use this tool you’ve been given and integrate it into your existing financial plan. Maybe the money will help you support your grandkid’s education or fund the overseas excursion you have been wanting to take or continue to solidify the family legacy through a property, scholarship, or other charitable efforts. 

Remember, not everyone will make the same choices as you do with your inheritance and that is okay. What worked for your best friend may not work the same way for you. If you lose a parent in your 60s or 70s, you may use the inheritance differently than if you lost them in your 20s or 30s. What you decide to do with your inheritance should be tailored to your unique needs. That can be difficult when you add family pressure into the mix.

People have opinions on many things: how you should dress, what you should eat, how you should spend your time, and the use of your inheritance is not immune from other’s scrutiny and opinions. You don’t have to take your great-aunt’s advice or the other heaps of non-solicited advice you receive from other family and friends. So many things change, especially tax law, so what worked for one person 10 years ago might not work now. Blend your inheritance into your plan so that it honors what you need while still preserving your family’s legacy. 

Plan your legacy

Receiving an inheritance can be an affecting experience, one that forces you to look at your own estate plan in a new light. You can take the experience you had and apply the things you liked and change the things you didn’t in your own estate plan. 

This foresight allows you to give your loved ones the opportunity to continue the legacy you built as well. It may not be easy to talk about estate planning, but by having these healthy conversations, you will be able to better prepare yourself and your loved ones.  

Inheritances are a wonderful gift, one that, if properly managed, can help you reach your financial goals. Remember, your priorities matter and you can use your inheritance in a way that benefits your financial plan while also continuing the legacy of those who came before you. It is all about using the tools you have to create the best strategy for you and your family. 

A strong financial plan can help you tell your side of the story and allow you the opportunity to continue to pass down the values, the legacy that came before. We are passionate about helping people live their legacy each and every day. Are you looking for a professional to help you with your financial management? Schedule a 15-minute call with us. We can’t wait to hear from you. 

Advisory services are offered through Legacy Wealth Advisors, LLC dba Legacy Wealth Advisors, an Investment Advisor in the State of Michigan. 

The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the State of Michigan or where otherwise legally permitted. All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication or future results. Moreover, this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed.

Legacy Wealth Advisors does not offer tax planning or legal services but may provide references to tax services or legal providers. Legacy Wealth Advisors may also work with your attorney or independent tax or legal counsel. Please consult a qualified professional for assistance with these matters.