Ep 5 - Maximizing Your Wealth: What to Do When You Inherit Money

Navigating the complexities of inheritance can be overwhelming, especially regarding tax implications and estate settlement. In this episode of Metcalf Money Moment, Jeb Graham, Ethan Hutcheson, and Eric Wymore break down key strategies for maximizing inheritance planning, ensuring tax efficiency, and streamlining the estate settlement process. From common mistakes—like cashing out an inherited IRA too soon—to the nuances of annuities, life insurance, and estate taxes, the hosts share valuable insights to help you make informed decisions. Whether planning your estate or preparing to inherit assets, this conversation will help you avoid costly pitfalls and save time and money.

IN THIS EPISODE: 

• [0:54] Inheritance planning starts with preventative care
• [6:30] Necessary documents, financial planning and consulting professionals are key to avoiding estate taxes
• [10:58] Discussion of the best account types to inherit and the 10-year rule
• [15:17] Discussion of the required minimum distribution and other examples
• [18:53] Annuities and life insurance and estate taxes
• [23:50] Contact a knowledgeable professional for proper inheritance and financial planning

KEY TAKEAWAYS: 

• The Great Wealth Transfer Is Underway – Over the next few decades, between $30 trillion and $68 trillion will be transferred from Baby Boomers to their heirs. Approximately 45 million U.S. households will inherit money, with an average inheritance of $177,000.
• Taking proactive steps, such as organizing financial documents, properly titling accounts, and having open discussions with family members, can significantly ease the inheritance process. Establishing clear beneficiary designations, maintaining a list of financial accounts, and planning with estate professionals help avoid unnecessary complications.
• One significant mistake people make when inheriting assets is not promptly informing their financial advisors or tax professionals. While a well-prepared estate plan helps streamline the inheritance process, settling an estate still takes time. 

RESOURCES:

Financial Planning Document Checklist

Metcalf Partners - Website

Jeb Graham - LinkedIn

Ethan Hutchison - LinkedIn

Eric Wymore - LinkedIn

DISCLAIMER:

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

ABOUT THE HOSTS:

Jeb Graham:

Jeb is the CEO and Managing Partner at Metcalf Partners Wealth Management. Before founding Metcalf Partners, he was a financial advisor in Overland Park, Kansas. Active in the Kansas City community, Jeb serves on the Kansas City Chapter Board of Entrepreneur Organization (EO). He holds a finance degree from Kansas State University and a CFP® designation, and he received additional executive education in retirement planning from Wharton.

Ethan Hutcheson:

Ethan is a Partner and Financial Planner at Metcalf Partners. He is passionate about helping people prepare, plan, and execute. With a career in Financial Services, his expertise spans Financial...