What do you do with inheritance?
 

I literally just got a phone call from my uncle. He called to tell me he is sending me the first disbursement from a trust set up by my grandmother and grandfather. I was/am completely shocked and had no idea there was a trust created or that my brother and I were listed as beneficiaries.

So, my uncle will be sending me a six-figure check this week and now I have no idea what to do.

I will call a CPA tomorrow but what should I do with the actual check? Do I deposit it immediately or keep it until I meet with a CPA?

BTW, I'm still in shock. This is very humbling.

Save it. Invest it in something very safe. Precious metals would prolly be a good bet right now.

Mason Jars buried out in a swamp somewhere? Not because it's smart or anything, mostly because some day you can be the subject of a song by Charlie Daniels. ;)

Oops, nevermind.

Hold it until your CPA sets up a trust for your trust check.. If you deposit it directly without taking steps, you will loose a large part to taxes..

You don't want to be hassled with that much money......just sign the back of it and send it my way LOL

Seriously, sounds like it could be a bit overwhelming, just keep your head on strait and listen to the sound advice of a trustworthy cpa......
Treat yourself to some sizzler too :D

Open a bank account and deposit the dam thing....FDIC guarantees each account to 100K...if it is more than that go to however many banks as it takes to keep 100K in each account.

No CDs' or anything.. The sit back and take a deep breath and say thx GrandMA...

Your not going to be making any interest worth speaking about but hey you need time to figure the lay of the land...in other words to get yourself educated on finances...

Remember the Grifters Rule..The higher the rate of return on an investment the greater the RISK...The US govt is paying 3.6% or so for the 30 year T Bill....that is the SAFEST INVESTMENT in the world as if the US govt goes...you don't need to worry about anyother investmest...as they won't be left standing..

However your a GDed fool if you invest in those fking things...a Bond Bubble is being created every day that the deficit and national debt climbs...

SO THERE ARE NO SAFE INVEESTMENTS EVERYTHING IS AT RISK..


If you are carrying a lot of debt, you might want to think real hard about paying that off especially if the interest rate is usurious. If the interest rate is below say 4% you may want to carry that debt...

Where would I put money today....I can tell you Exxon stock is under priced and is paying a 3% to 4% dividend....Exxon has not missed a Dividend payment EVER...and at $60 a share it canmove to $65 or $70 a share REAL EASY..This is about as little risk as you can get...

The BP oil debacle has creamed the oil stocks...you would be buying at a low point in their trading ranges....remember buy low and sell high....your idea here is to be getting a DIVIDEND as in income. with the Capital Gain potential when you sell..This is a place to park a PORTION of the money...remember do not place all your eggs into one basket....and that also means not into anyone sector of the market like just oil comapnies.....or economy...as in RE...

Also don't buy anything expensive....sit tight for awhile...no rush...you got plenty of time...

WHAT TAXES??? The money coming out of Trust has had the Inheritence taxes paid...

But do check with at least you Uncle...he will know..

If it's an inheritance less than $1M, there is no tax. (I thought).

I won't have that problem...

NOBODY here has suggested hookers and blow yet? Shame on you guys.

There is NO DEATH TAX until the end of the year....If u have a living Trust I think a coupole can leace 1.5M tax free...and indivudal is at 750K...those numbers have to be checked on as it has been a long time since I looked...

However the EXECUTOR of th eestate has to pay all the debts and taxes before he cuts a check to the heirs...

So there should be no tax liailitiy involved...

However anything earned on the money is now income...or Capital Gain if something is bought and then sold at a profit.

Nobody's (or is that nobodies) suggested investing all of that into a personal trust located overseas dedicated to another corporation in another country.
Oh, hire a lawyer.

You are now the custodian of that (family) money. So enjoy it, hopefully add to it, and DON'T lose it, and hand it on to your kids. God bless your grandparents.

Rental property?

997 GT2 then continue living as before plus 2011 GT2.

Oh god... Leland with extra money... Is anyone else imagining the possibilities?

You say "call a CPA." Does that mean call YOUR CPA (ie someone you know and trust) or does that mean start looking for a CPA? A lot of CPAs are also financial planners/investment advisors. That may or may not be a good combination in your case.

Instead of 5,000 rounds stockpiled it's 50,000. And that's just for the weekend.




To tell you the truth, I don't understand what the big deal is. All you Americans are just swimming in money arn't you?

Pay off debt, save the rest (if any). Say a prayer of thanks! Good luck and enjoy!

As long as he doesn't run out and buy the newest nissan Z I think he'll be alright :D

Thought you could open multiple accounts at an institution and be covered. Meaning FDIC covers the account and not the institution.

Even still I'd prob opt for separate institutions.

If you live in California, I'm sure a few "special" taxes await!

It is still income tabs, Uncle Sucker takes his cut of income, though you might be okay due to the vagaries of tne inheritance tax rules. Talk to your CPA before depositing it, then do what Art sez.

+1 Gramma didn't give you this money to stress you out. She wants you to be happy.

http://forums.pelicanparts.com/uploa...1284385024.jpg

If you're married, open a new account in your name only preferably in a different bank than you and your wife use. In other words, don't co-mingle inheritance.

Maybe this sounds a bit odd, but here's what I would do.

Get a safe deposit box. Put the uncashed check in there. Just leave it for a while until I've wrapped my brain around having money and decide what to do with it. Maybe it would only take a couple of weeks to meet with a CPA and consider my options, but it might take me a couple of months, too.

It seems like if I cash a check, that I somehow feel like I must use the money. But if I don't cash it, feels like the pressure is off. Feels like I can take my time and make a good decision.

Of course, I'll never have to worry about an inheritance - LOL! :rolleyes:

angela

It is temporarily at $250,000, normally $100,000

That is per DEPOSITOR. In example: if you have $1M and 10 people on the signature card, it's all covered in one account. Dumb idea, but you get the jist.

The above comments show a complete lack of financial understanding by most people on this board. You have not given enough information for a quality answer, however verifying what type of distribution you are getting with your CPA and Uncle is a good start. Then hire a fee only financial planner to assit in devloping a long term starategy.

Ouch!

Low blow!

My thoughts exactly. You may not want the money in your name, but put it in a private trust or the like. If you need more help with this let me know. Not going to post much about this on the open internet.

No reason to give 50% of it to the govt unless you want to pay for everyone who is sitting on their azz all the time not looking for work.

Leland, BTW will be in Philly in 10 days-two weeks. Up for another dinner with Tim, Sniper and the usual suspects?

Joe A

Pay off your debt, buy a house that you can easily sustain with your income level and tell your banker to fuch off.

Yes there are ways to do it, it is done by the way the ownership of the account is vested. However if things start to get shakey the FDIC can hold your feet to the fire...and go by the letter of the law..which means YOU LOSE...they have come close to holding peoples feet to the fire back in the 1990's...so don't think it can not happen..

Also when FDIC has to pay off it takes awhile to get your dinero...as in roughly 9 MONTHs

Much better to spread the money out...in different institutions..

Also STAY AWAY FROM BOND MUTUAL FUNDS....If one has the dinero one should always build their own portfolio of Bonds...WhY...With indivdual bonds one can always wait till they mature to get their PRINCIPLE BACK...The value of a Bond fluctuates with the rise or fall of interest rates. If you should buy into a Bond Mutual Fund when INTEREST RATES ARE LOW like they are right now....you are paying a premium for those Bonds which is reflected in the Mutual Fund share price and if interest rates should rise the VALUE OF THOSE BONDS WILL DECREASE..and the Mutual Fund Share price will DECREASE Permanently....because they reset the NET ASSET VALUE OF THEIR BOND PORTFOLIO DAILY...

TOBRA an inheritence is NOT CONSIDERED TO BE INCOME AND TAXED AS SUCH...

Yeah...TRUST NO ONE...trust is to be earned...and that takes time. You will find that MOST FINANCIAL ADVISORS DO NOT KNOW SHYTE...they only know the Party Line of what the company tells them...THEY ARE SALESMEN...


BTW DO NOT TRUST ANYONE INCLUDING WIVES...so do not co mingle funds nor use the money as the basis of income for a car loan...however if you are married and do not have a prenup then she will most likely get HALF...if the relationship should go south.

Leland that was long enough ago I thought it would be funny by now.....sorry LOL

Either way good luck :)

Gifts and inheritances are NOT INCOME and are not subject to Federal income tax when received...California may have "special" rules, I don't know off the top of my head.

Federal Gift and Estate taxes apply to the giver only, not the givee.

I agree with the advice to pay off debt first if you have any. You are not likely to find a better rate of return from "safe" investments. I am mostly holding cash these days, and of course "investing" in old german auto parts:p

I know any gift coming my way will in part get spent on gratification.

You're right, that is odd advice.

Go deposit that cheque in a bank account, at least start earning some interest on the capital while you decide where to invest the money. Get some advice from a financial planner who will analyze your situation (assets, debts, income, retirement plans etc) and advise a course of action suited to your need. If he/she starts flogging some dubious products, look for another advisor.

Don't worry about the FDIC guarantee, there are many individuals and companies with much more cash in the bank than 6 figures. Just use a reputable bank.

Really it is up to you and your wife and what yall decide to do.

Pay off debt, take the money you were spending on debt and invest in yall's future.

Real estate, they aren't making any more of it, might be a good investment.

We bought an annuity. Many here will tell you how dumb that was but at the time it was the wisest thing we saw to do with the money. It has kept my Mother living rather confortably this past decade + and it still has plenty of power left to go further.

I would do what felt best to us. I'll take my low five figure commission in chocolate please!

tell your wife she can have access to (part of) the money as soon as she gets you out of the armpit of california :p

me? I would probably open (start?) a trust, then use part of it to pay off credit cards, part to start my own business, and save the rest.

Ditto-regardless of how solid your marriage is- assuming doing this won't set off alarms. Its seperate property until you comingle.

Taxes are payable by estate/trust - not you.

I'd invest most but buy yourself a treat....