Inheritance Issues

MOST PEOPLE HAVE A MUCH BETTER CHANCE OF INHERITING SOME MONEY FROM THEIR RELATIVES AT SOME POINT. ADVICE FROM FIRST BUSEY TRUST`S SCOTT MACADAM: Q. IS IT TRUE THAT THE "BABY BOOMER GENERATION" IS IN LINE TO INHERIT TRILLIONS FROM THEIR PARENTS. A. Not any more (according to recent studies). For a variety of reasons, the amount of wealth to be transferred has been reduced significantly. Q. WHAT ARE THESE REASONS? A. Longer life expectancy, rising healthcare costs, more annuitized savings,change in attitudes Q. AND THERE ARE RECENT STUDIES THAT SUPPORT INHERITANCES ARE MUCH LESS THESE DAYS? -longer life expectancy -rising healthcare costs -more annuitized savings -change in attitudes A. 92% of the public will never inherit a dimeOf the 8% who will, half of them will get less than $25,000 Only 1.6% will get more that $100,000 Keep in mind, however, that regardless of the "averages", this is an individual matter that will vary from family to family. Q. WHAT CAN ONE EXPECT REGARDING AN INHERITANCE? A. Usually a minimum of 6 months from the date of death before distributions are made No estate taxes due unless the estate is over $1 million No income tax consequences What to expect with an inheritance 6 month wait No estate tax unless more than $1 mil. No income tax consequences Q. TIPS ON WHAT TO DO WITH THE MONEY? A. Don`t rush into anything put it in a money market until you decide what to do. should line up with your current investment plan Q. OTHER CONSIDERATIONS? A. It is wise often to keep inheritance "separate" from other marital property 8/17 JH