How a Financial Advisor Can Help with Inheritance Planning

A financial advisor, especially a Registered Investment Advisor (RIA), can provide exceptional value to those either leaving or receiving an inheritance.

For those receiving an inheritance, especially those who are coming into wealth for the first time, it is critical to receive good information and to make good decisions from the start. Some decisions made at this point are irrevocable, and mistakes can be avoided with good professional advice. A financial advisor will also know when to bring in an attorney or accountant to advise on issues related to receiving an inheritance.

For those leaving an inheritance, a financial advisor understands issues related to estate planning, tax planning, retirement accounts, and how and in what form to best pass on an inheritance.

Leaving an inheritance involves both technical and emotional issues that a qualified advisor understands. For example, do you want to leave all your money to your children at once for them to do with as they please, or might you want to put some structure around the inheritance, such as paying out over time and with some usage restrictions? An advisor who is also a CPA can better advise on the most tax efficient ways to leave an inheritance.

There can be hundreds of thousands of dollars at stake between good and bad decisions made prior to and at the time of inheritance. A qualified financial advisor can be there to guide you through the process.

About the Author

Todd E. Frank, CPA/PFS, MBA is the President and CEO of Frank Financial Advisors, a Registered Investment Advisory Firm (RIA) serving clients nationwide from our headquarters in Carlsbad, San Diego, California. As an RIA, Frank Financial Advisors is able to offer truly independent, fee-only financial advisory services.