Inheriting stocks can be even more complicated and subject to a dizzying amount of tax ramifications, many of which are beneficial to the inheritor. The Motley Fool wrote about estimating the value of inherited stock, and if you are expecting to receive stocks as part of your inheritance, speak to an estate planning professional who can help guide you through the process.
Another thing to keep in mind: Plans change.
According to Michele Lee Fine, RICP, president of Cornerstone Wealth Advisory in Jericho, New York: “The biggest mistake and missed opportunity many people experience when it comes to estate planning, regardless of the level of wealth, is that they often think their documents are ‘one and done,’ and don’t take the time to revisit and review every couple of years to ensure they’re aligned with their current goals, concerns, and objectives.”
Fine stresses the importance of establishing a solid plan with your loved ones, then revisiting it. “There are no do-overs in legacy planning after you’re gone. Consulting with a lawyer and a financial representative is the best way to ensure you’ve covered all your bases. Because the documents are only as good as how they are being used.”
Inheriting anything, whether it be cash, real estate, or stocks, should benefit the heirs, not cause them confusion or frustration. Take the time to talk to your family and be prepared as best as you can for a transition of assets during a stressful period of family transition.