Discuss Your Options and Make a Plan
The first step is to talk to a professional. A financial advisor can assist with the best ways to use and invest an inheritance. It may be most prudent to use the funds to pay down debt and create an emergency fund. There may also be great opportunities to invest into your retirement and you may even have room for college funding for children and grandchildren.
If those bases are already covered, the next step would be to consider how your philanthropy could make a positive impact in your community or around the world. Again, a financial advisor and tax professional would be vital to helping you figure out which monies are best to give away and best to keep for you or your family members. For a quick overview of how taxes can impact an inheritance, check out our article Taxes and Your Legacy Planning.
Put Your Inheritance to Work
There are many ways to use your inheritance as a way to benefit others. Whichever route you choose, you can be sure to honor the loved one who has passed. Make sure to check out our article Philanthropy A to Z: How to Decide Who to Donate to After a Death to help make the decision of where your inheritance should be directed. Once that step is complete, consider the suggestions below that we have gathered for you.
A few suggestions include:
- Donate a percentage of your inheritance to a special cause that your loved one was close to. A one time donation is always appreciated by any organization, no matter the size.
- A yearly, continued donation to a charity or local club they were involved in regularly. This allows you to carry on their legacy through the passions they once enjoyed for many years to come.
- Partner with an organization and plan an annual charity event in their honor. Use funds from your inheritance to cover the costs of the event. If your loved one passed away as a result of a disease, the proceeds can go towards finding a cure or better treatment for that ailment.?
- Connect with an organization that is making a push for more donations. Talk to them about the possibility of using your inheritance to match donations the organization receives within a certain time frame. Make sure to communicate a cap for matching donations.
- Be creative with the physical items you have received as an inheritance. There are many ways to donate items to charities and organizations that utilize them efficiently to help others. Whether it’s donating a car, furniture or unspoiled pantry items, find out how your loved one’s possessions could bless someone else.?
Implement the Plan
The last step is to simply do what you have planned to do. Once you have decided how you will use your inheritance, stick to your plan and do your best to stay on course. As we mentioned before, a financial planner can be useful to make sure your plan is on the right track and being implemented. This will help you to be conscious of your decisions and smart about your choices.
For more information on National Philanthropy Day 2016 taking place on November 15th, go to http://npdlove.com/. Making a lasting impact and carrying on your loved one’s legacy is a priceless gift you can pass on for generations.