Day 1: What exactly is an inheritance?

An inheritance is simply the transfer of assets from one person to another. This happens when someone passes away (known as the testator). After a person dies, all of their assets are transferred to the heir(s). This property as a whole is called the inheritance or estate. This can comprise cash, investments, jewelry, furniture, and other valuable items. Inheritances are passed on to either a beneficiary (someone named in a will) or to an heir, who could be a spouse, child, or other relative.

 

Make a decision when you feel at peace

If your parents, husband, or domestic partner has passed on, you are probably going through a very tough time. The money usually doesn’t matter at first. However, after the grieving period, the topic of finances may come up. When it comes to inheritance, it’s important to understand what to consider and what the next steps are.

 

Inheritances are not all that common – only about 20% of households receive an inheritance. But although inheritances are more the exception than the rule, they impact the finances of millions of people. According to a 2019 report from the investment management company United Income, several trillion dollars will be passed down through inheritances in the next 30 years. Yeah, trillions of dollars (or even euros). That’s a number with twelve zeros – and those zeros could change a thing or two…

 

A wonderful gift

If someone (your parents, for example) wants to give you money during their lifetime, then you have all the reason in the world to be happy…you’ve received a gift, and you didn’t have to lose anyone for it! Regardless of the amount, your parents or some other loved one has made good financial decisions that they want to share with you, which you can now profit from as well. Now, if that’s not a reason to celebrate!