MANAGE AN INHERITANCE
Receiving an inheritance can be a welcome financial windfall, but it may also create new challenges in your financial life. Be sure any decisions you make about inherited assets are done with careful preparation.

You may have already received or soon be in a position to inherit assets from a loved one or other benefactor. The question now becomes “what will you do next?” Whether it was expected or not, proper management of an inheritance can be complex. It’s important to carefully assess your inheritance in the context of your overall financial circumstances. U.S. Bank and U.S. Bancorp Investments, Inc. can offer products and services to help.

INHERITANCE TAKES DIFFERENT FORMS
The common perception is that inheritance involves money passing to a beneficiary. While that is often the case, you also may inherit other types of assets, such as property, a business, family heirlooms or stocks and bonds. Today, many older Americans have accumulated sizable sums in workplace savings plans such as 401(k) plans or IRAs, and assets left in those accounts also need to be distributed to beneficiaries.

What should you do with your inheritance? Receiving a sizable sum of money or other assets of value can seem like a windfall that suddenly gives you more financial freedom. Many feel a sense of wealth they are not accustomed to, and can become less cautious with how they spend their money. We believe this can be a mistake. An inheritance should help support your long-term financial plan. Inherited assets can contribute to your key lifetime goals such as:

– Building your retirement assets
– Accumulating savings to help pay for college
– Potentially protecting your family with adequate insurance
– Saving for other important goals in your life
– Supporting your favorite charitable causes

In some cases, the assets left to you could potentially provide you with a stream of income. For example, inheriting a Roth IRA has the potential to generate regular payments of tax-free income that could continue through your life.