An inheritance often is seen as a financial windfall, but there are times when people may want to consider saying thanks, but no thanks.
Receiving a sizable gift, if not structured properly, can have unintended consequences that may upend your financial situation or cause friction between family members. If either of those is the case, consider refusing it, experts said. It may not be worth your time, money or emotions.
“It’s very important what type of asset you’re inheriting -- what it can do for you and if it fits into your universe, and are you the best custodial of those assets,” said Miklos Ringbauer, certified public accountant in Southern California.
The so-called great wealth transfer has begun. Nearly $124 trillion in assets will change hands through 2048, according to estimates by the consulting firm Cerulli Associates. Recipients are expected to inherit some $106 trillion of that amount, mainly from baby boomers, with the rest going to charity.
Assets passed down will include cash and other liquid assets, stocks and bonds, real estate, business interests, retirement accounts, other investments, and personal property.
