The Burden of Inheritance
I am often talking with people about the delicate topic of inheritance. It can be difficult to talk about, and I tend to notice a certain expression that reveals some reservations and a complex range of emotions. Some mix of grief, anguish, and possibly even guilt that can be hard to put a finger on.
It can be a real challenge for people to separate the emotions associated with losing a parent from the practical reality of receiving an inheritance. Throughout our lives, we rely on the consistent presence of our parents, until that moment when they are no longer with us.
I feel that some financial planners can be far too hasty in offering advice and presuming that funds will automatically be consolidated into a retirement nest egg. Perhaps a better approach is to permit individuals to set aside their inheritance for a while, allowing for a period of adjustment and reflection.
There will likely come a time when individuals can distance their financial decisions from the emotions associated with losing a loved one. To take ownership and stewardship of inherited money, whether large or small. Some might feel an obligation to spend the money in ways they believe their parents would have wished. Others may view it as an unexpected gain to be spent freely. There will also be those who feel a duty to manage the inheritance with future generations in mind, ensuring that it is preserved and passed down through the family.
Everyone’s journey is different, but my point here is: The secret ingredient is not just good advice – it’s time.
Lachlan Harvey CFP®
Authorised Representative (No 227293)
