Steps after receiving an inheritance

On Behalf of | May 29, 2018 | Probate And Estate Administration

Nevada residents who are left money or assets in a will may have to take a few steps to obtain their inheritances. Furthermore, they should know how to manage those funds.

The first step is to talk with the will’s executor. One should request to review the last will and testament and inquire if a settlement meeting will be held to discuss the document.

A beneficiary may also have to determine if they need legal representation. A will is required to go through probate — a process in which the court system reviews and authenticates the validity of the will and sees to it that the wishes of the decedent have been followed. Relatives who disagree with the contents of the will may legally contest the document, and it may be necessary for the heirs to have an attorney on their side to protect their interests.

Taxes are another consideration. Assets are typically distributed after all debts owed by the estate have been paid. While an heir may not be taxed on the actual assets they receive from an inheritance, they may owe federal taxes on any earnings that are produced from the inheritance. This includes any interests that has accumulated from money in a savings account.

Unfortunately, many beneficiaries end up squandering their inheritances. One surefire positive way to use inheritance money is to apply it to debt. The money can be used to eliminate high-interest credit cards and student loans. It can also be very useful for getting current on bills.

An attorney who practices estate administration law may assist clients through the probate process. If a client is creating a will, legal counsel could explain which strategies should be used to help protect wealth.