Episode #35: How to Plan For Receiving An Inheritance In Retirement

Today’s Prep:

Are you planning for retirement but in the back of your mind also banking on a big inheritance? Is it wrong to factor that in? David answers this question from the mailbag about inheritance and gives some tips on how to best prepare for one.


(Click the featured times below to jump forward in the episode)

Equipping Points:

As you plan for retirement, does it make sense to also consider an expected inheritance? Rebecca writes in with this question for David to answer as we dive into the mailbag. Her mom is 90 years old and in declining health, so Rebecca wants to know if it is reasonable to start to factor in a sizeable inheritance into her own retirement.

David first looks at the assets. For instance, is there an IRA? Is there an annuity? Different assets will change the tax implications of the inheritance. It’s important to be a designated beneficiary listed in order to avoid some of the taxes.

Then, there are certain assets to want to protect to make sure they don’t go through probate. These assets include a home, a car, and a bank account. Whether these are assets you have or that of someone you may inherit from, you’ll want to take the proper steps necessary to avoid probate in estate planning.

All of this will require some communication and a bit of work to set up correctly, but can make all the difference later on in order to make a smooth transfer when it comes to receiving the inheritance.

Listen to David’s full answer on the podcast or click the timestamps below to skip ahead to specific segments.

[0:44] – Mailbag: Is it unwise to factor inheritance into retirement planning?

[2:10] – Consider the assets in the inheritance and the related tax implications.

[3:00] – One thing you need to make sure you avoid.

[4:44] – The three assets most likely to get stuck in probate.

[6:12] – The cost and time of going through probate.

[6:50] – Certain assets are reasonable to factor into your retirement planning.

[8:20] – Family dynamics can impact communication about an inheritance.


Today’s Takeaway:


Additional Resources:


More From David:

The host: David Dickens

Sign up for our weekly email newsletter:

We are an independent financial services firm helping individuals create retirement strategies using a variety of investment and insurance products to custom suit their needs and objectives.

Investment advisory services are offered through Brookstone Capital Management LLC, an SEC Registered Investment Advisor. Kansas City Financial Advisors and Brookstone Capital Management LLC are separate companies.

Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. None of the information contained on this website shall constitute an offer to sell or solicit any offer to buy a security or any insurance product.

Any references to protection benefits or steady and reliable income streams on this website refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by insurance company. Annuities are not FDIC insured.

The information and opinions contained in any of the material requested from this website are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. They are given for informational purposes only and are not a solicitation to buy or sell any of the products mentioned. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Privacy Policy | Terms of Use

Call Now Button