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Don’t Rely on an Inheritance to Secure Your Financial Future.

By August 31, 2013Estate Planning

Last week, in a social setting, I overheard a woman state that she and her husband are not concerned about their retirement.  She continued by stating the reason is that each of them will inherit large sums from their parents.  I found this to be an astounding comment/belief.  I cannot fathom how some people are relying on possible inheritance to fund their own retirement.

I did not ask this woman if she had spoken to her parents about their estate plan and whether or not she is a beneficiary under their plan.  I would hope she was not assuming she was a beneficiary under her parents’ estate plan because, under Arizona law, parents are not required to include their children as beneficiaries of their estate.  In my practice, I see many clients leave their estate solely to children and grandchildren. However, this is not always the case.  Parents can choose to leave their estate to others such as charities, friends and distant family members.  From time to time, I have clients who feel that charities are more deserving of their estate than their children.

In addition to the issue of whether or not this woman is a beneficiary under her parents’ estate, the issue as to the extent of the inheritance should be looked at as well.  The reality is that many individuals do not pass on an estate.  With the rise in long term care costs, many individuals spend the majority of their wealth prior to death.  Even those that do leave an estate, the median inheritance is around $64,000 according Boston College Center for Retirement Research.  Now $64,000 is a significant number but it is not enough to fund an individual’s retirement.

Take my advice, do not rely upon the idea that you are entitled to an inheritance.

For more information or to schedule a free consultation, contact us today at 888.222.1328.


About Morris Hall:
At Morris Hall, we have focused our legal practice on estate planning for over 40 years.  Along with estate planning, our attorneys help clients and their families with matters of probate, trust administration, wills, power of attorneys, business planning, succession planning, legacy planning, charitable gifting and other important legal aspects.  We also have divisions in financial, real estate and accounting to help you incorporate all of your planning together, ensuring that everything works perfectly for your needs and situation. Our Arizona offices are located in Phoenix, Mesa, Scottsdale, Cave Creek, Tucson, Prescott, Flagstaff and Arrowhead.  Our New Mexico offices are located in Albuquerque, Las Cruces and Santa Fe.  Contact us today at 888.222.1328 to schedule an appointment!

This blog should be used for informational purposes only.  It does not create an attorney-client relationship with any reader and should not be construed as legal advice.  If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation.

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