Many of us have used the phrase, “If money were no object,” when discussing certain decisions. Whether it’s a contemplated purchase, a new business idea, or some other decision involving money, momentarily separating the practical matter of cost from the ideal resolution or decision can sometimes help us gain clarity.
But suppose you are about to inherit substantial wealth. Coming into a large inheritance can seem like stepping into an unfamiliar world, especially if you have yet to have the good fortune to have been prepared and counseled beforehand. Suddenly, many of the usual “guardrails” are gone, and you may now be able to take many actions because money is no longer an object. Many options are suddenly open to you that you may have never been able to consider before. All the rules, it seems, have changed.
In situations like this, it becomes imperative to take the time to gain a firm understanding of who you really are at your core and what matters most to you. Some of us would assert something like, “Money won’t change me,” which is admirable. But the money will undoubtedly change the choices available to you. How can you ensure that your choices reflect who you are at the deepest level? What steps will you take to exercise the type of stewardship of your resources that reflects your most important values?
An Experienced Guide
If you know anyone who has ever done an “extreme” excursion—think of climbing Mount Kilimanjaro or going on a walkabout in the Australian Outback—you probably know that it’s important to have a guide who knows the route and the challenges you’re likely to face along the way. Receiving a large inheritance can be similar, even for those who have grown up in affluent circumstances and have had a certain level of expectation around their eventual wealth. Perceptions tend to change when you’re suddenly the one who is expected to make all the decisions and accept all the responsibility that goes along with managing a sizeable estate.
At times like these, having the counsel of an experienced guide—a financial advisor and wealth manager—can make a big difference.
Navigating things like managing non-cash assets, getting the right tax advice, working efficiently with your legal advisors, and other matters that often accompany receiving a large bequest can feel overwhelming. But, a qualified, professional financial advisor can help you work through many of the “non-financial” questions—which actually can be some of the most important questions to answer: “How can I best benefit my children?” “What’s the wisest approach to philanthropy?” “How can I allocate support to causes I believe in and still ensure I’m caring for my family?” “What kind of lifestyle can I afford?”
Get In Alignment
One of the best ways to ensure that you exercise good stewardship of your inheritance is by aligning your use of the assets with your personal values. Remember that this goes beyond indulging your favorite hobbies or paying off debt. True financial alignment with values means being intentional and informed about how your assets are spent, invested, and managed.
Let’s say, for example, that environmental concerns are at the top of your values list. You would probably want to target as much of your financial behavior as possible—your saving, spending, investing, and charitable giving—in ways that either support environmentally sound efforts and enterprises or avoid supporting businesses or efforts that do not align with those values.
Alternatively, your priority might be creating a financial foundation to provide financial security for multiple generations of your family, endowing educational opportunities for at-risk students, or ensuring a secure future for a religious or charitable organization. The point is that you should allow what is most important to you to drive the design and implementation of the plan for your inheritance. When the motivation comes from your most deeply held convictions, you will be dedicated to exercising the right kind of stewardship.
The Need to Re-evaluate
Finally, remember that, just as a ship requires continuous course correction, your plan for managing your wealth should be re-visited regularly. After all, as we go through different stages of life, we typically experience changes in our perceptions and priorities. What seemed to be essential needs for our families at one stage may be less critical later as other needs emerge. In the same way, you may need to re-evaluate your plan over time in light of changing circumstances and priorities.
Having guided others through various life passages, your financial advisor should be able to help you think constructively about your changing needs, work with you on setting new priorities, and help you devise appropriate strategies for managing your assets to stay in sync with your developing concerns.
Is there a bequest or other significant financial windfall in your future? What is your current plan for handling your inheritance? Are you wondering if trusts or other estate planning tools should be part of your strategy? At Curio, we want to know your thoughts and concerns. By asking the right questions, we can help you discover the right approach for your unique situation. Why not get in touch with us?
