What to tell children about their inheritance

| Jan 29, 2018 | Estate Planning |

Pennsylvania parents may plan on leaving money to their adult children. However, many of them may not choose to talk to their children about their inheritance. Having this conversation may enlighten a beneficiary as to where to look for the money that is being left behind and how to make the best use of it from a tax perspective.

During this conversation, it is important for parents to explain the term “step-up basis.” When a person inherits stock or other assets that have appreciated in value, the cost basis is the value of the asset on the date of the decedent’s death. In other words, the cost basis “steps up” from the original cost basis, which was the value of the item when it was first acquired. This is important to know because capital gains taxes will be based on the higher number if it is sold in the future.

Parents may also want to have a financial adviser who their children can contact after they pass on. This may make it easier to manage any money a child receives as part of an inheritance. A financial adviser may also help a child to determine what to do with an inherited IRA or annuity that he or she may receive from a parent.

The loss of a loved one may be an emotional time in a person’s life. Therefore, it may not be the best time to ask questions about an inheritance. Those who are planning to leave money or other assets behind may wish to create a will or trust as soon as possible. This may make it easier for beneficiaries to know what they are receiving and how and when they will be able to access it.

X

YOU MAY ONLY UTILIZE THE ONLINE PAYMENT SYSTEM TO PAY INVOICES ISSUED BY EVEY BLACK ATTORNEYS LLC.

Clients may NOT use the online payment system to pay any bankruptcy matter or inheritance tax imposed in an estate administration matter (Evey Black Attorneys LLC will not issue an invoice for these matters). Additionally, any municipal authority/township/borough sewer and/or water customer may NOT make any payment related to any delinquency for which this firm is collecting. Bankruptcy, estate administration tax matters and payments related to sewer and/or water delinquencies must be paid by cash, money order, certified bank check or personal check (personal checks in sewer/water delinquency matters or for inheritance tax payments may not be allowed in certain circumstances).

USE OF THE ONLINE PAYMENT SYSTEM IN VIOLATION OF THE ABOVE WILL RESULT IN EVEY BLACK ATTORNEYS LLC REFUNDING TO THE CREDIT CARD THE AMOUNT OF MONEY ORIGINALLY CHARGED, MINUS ANY TRANSACTION FEES EVEY BLACK ATTORNEYS LLC IS CHARGED, AND A $10 SERVICE CHARGE WILL BE IMPOSED. IN THE CASE OF A BANKRUPTCY PAYMENT, THE ENTIRE BALANCE WILL BE CREDITED AND THE CLIENT WILL REMAIN RESPONSIBLE TO PAY THE TRANSACTION FEES EVEY BLACK ATTORNEYS LLC IS CHARGED PLUS A $10 SERVICE CHARGE.

By clicking to proceed below, you are acknowledging you have read and understood the above restrictions on the use of the online payment system and agree to the charges set forth herein if you make a payment in violation of such restrictions.

PROCEED