Brian Sirota discusses inheriting money
Listen to the interview on the Business Innovators Radio Network: Interview with Brian Sirota Founder of BES Financial Discussing Inheriting Money – Business Innovators Radio Network
Brian Sirota, founder of BES Financial, to discuss the intricacies of inheriting money. He explores the excitement and surprises that come with unexpected inheritances, while emphasizing the importance of making informed financial decisions. Brian advises listeners to consult with financial professionals or tax consultants to navigate potential tax implications effectively. He explains the benefits of understanding the existing holdings, such as stocks with a step-up in basis that could minimize capital gains taxes, and discusses other financial instruments like IRAs that may require strategic distribution.
Receiving an inheritance can be a significant financial event, often accompanied by a mix of emotions and important decisions. One of the most critical steps in this process is consulting with a financial professional or tax consultant. Here’s why this is essential:
When inheriting money, it’s vital to be aware of the potential tax implications that may arise. Different types of assets come with varying tax responsibilities. For instance, stocks that have appreciated in value may benefit from a “step-up in basis,” meaning that beneficiaries may not have to pay capital gains taxes on the appreciation that occurred during the deceased’s lifetime. However, other financial instruments, such as IRAs, may have tax-deferred gains that will need to be taxed upon distribution.
Brian Sirota emphasizes that a financial professional can help navigate these complexities, ensuring that beneficiaries understand how taxes will affect their inheritance. This understanding can prevent significant tax liabilities that could arise from taking a lump-sum distribution without proper planning.
The rules governing inherited IRAs have changed significantly in recent years. Previously, beneficiaries could stretch distributions over their lifetime, but now they must withdraw the entire amount within a 10-year period. This change can have substantial tax implications depending on the beneficiary’s current income and tax bracket. A financial advisor can help strategize the timing and amount of distributions to minimize tax burdens and align with the beneficiary’s overall financial plan.
Inheriting money often comes with emotional weight, especially if the funds are from a loved one. Sirota advises clients to pause and avoid making immediate decisions about how to use the inheritance. Consulting with a financial professional allows individuals to take a step back, evaluate their options, and make informed decisions rather than impulsively spending the money. This approach can help ensure that the inheritance is used in a way that honors the memory of the deceased and aligns with the beneficiary’s long-term financial goals.
For individuals who already have a financial plan in place, inherited money can be integrated into their existing strategies. A financial professional can assess how the new funds can enhance retirement plans, fill gaps in financial security, or provide opportunities for investment. This integration is crucial for maximizing the benefits of the inheritance while maintaining a cohesive financial strategy.
Often, the person leaving the inheritance may have specific intentions for how the money should be used. A financial advisor can help ensure that these wishes are honored, whether it’s providing for a special needs child, supporting a charitable cause, or ensuring financial security for the family. By consulting with a professional, beneficiaries can create a plan that respects the legacy of the deceased while also meeting their own financial needs.
- In summary, consulting with a financial professional or tax consultant when receiving an inheritance is crucial for navigating the complexities of tax implications, making informed distribution decisions, and integrating the inheritance into a broader financial plan. This guidance not only helps in managing the financial aspects but also supports beneficiaries in honoring the memory and intentions of their loved ones.
Brian explained: “Inherited money often carries emotional weight, especially if it comes from a close family member. It’s important to pause before making any immediate financial decisions”
For those who are planning their own legacies, it’s essential to consider how your wishes will be honored after your passing. Sirota highlights the importance of:
Documenting Wishes: Clearly outline how you want your assets to be distributed, especially if you have specific intentions for certain family members or charitable causes.
Utilizing Financial Vehicles: Consider investment options like life insurance or annuities that can facilitate the transfer of wealth in a tax-efficient manner.
Brian also shared: “It is my privilege to assist you and your family through your retirement journey”
About Brian Sirota
Brian is a Financial Representative with extensive knowledge and understanding of Financial Products to assist clients in planning for their retirement needs.
Learn More: https://besfinancial.com/
**Securities and investment advisory services offered through Osaic Wealth, Inc., member FINRA/SIPC and a registered investment advisor. Insurance products may be offered through Brian E. Sirota, also Known as BES Financial which is not affiliated with Osaic Wealth.
Recent Interviews and News:
Brian Sirota discusses indexed annuities: Brian Sirota Founder of BES Financial Interviewed on the Influential Entrepreneur Podcast Discussing Indexed Annuities – Authority Press Wire
Brian Sirota discusses the importance of income planning: Brian Sirota Founder of BES Financial Interviewed on the Influential Entrepreneur Podcast Discussing Income Planning – Authority Press Wire
