While there has been much discussion about baby boomers inheriting substantial wealth, so far that has not happened. A 2006 AARP study found that 20% of baby boomers have received an inheritance with a median value of $64,000. Only 15% of baby boomers expect to receive an inheritance in the future. However, if you do receive a major inheritance, consider these items:
- Wait for a while before making any major decisions about the money. Take your time before making any decisions.
- Decide how this will impact your lifestyle. Before you start spending the money, thoroughly assess your lifestyle and decide how much of that inheritance should be set aside for future goals, like retirement.
- Get professional help. Your inheritance is likely to include a variety of assets. How you use those assets can have a major impact on your tax situation.