Dispersing inheritance property can be a complex and complicated process.
There is paperwork to file, taxes to pay and occasional family disputes to contend with.
Matters can become even more complicated if a person dies without leaving a Last Will and Testament.
The decedent's estate can be tied up in probate court for quite some time, leaving heirs responsible for upkeep on real estate property, outstanding debts and taxes.
Not to mention attorney fees and court costs.
Even if inheritance property is listed in a Will, it must still go through the probate process in order to ensure its validity.
If no one contests the Will, inheritance property is usually tied up in the Probate Court system for a minimum of six months.
During this time a Probate Judge reviews the decedent's estate, notifies beneficiaries and verifies assets.
If there are outstanding debts, creditor or tax liens associated with the estate, they must be paid prior to disbursement of inheritance property.
The best way to prevent your loved ones from having to jump through hoops to obtain the inheritance property you wish to leave them is to setup a Revocable Living Trust and execute a Last Will and Testament.
Property transferred to a living trust is exempt from the probate process and can quickly be distributed upon your death.
Unfortunately, the vast majority of people procrastinate when it comes to preparing for death.
While it's understandable that people don't want to think about dying, it's important to realize the unnecessary burdens lack of planning places on loved ones.
If you do not designate who you want your assets transferred to, the probate judge will make the decision for you.
Unless you have a family who gets along no matter what, chances are high that family feuds will erupt over who should receive your property.
A revocable living trust can eliminate the potential breakdown of family relationships.
It's not difficult to draft a Will and Living Trust.
You can hire an attorney to draft these documents on your behalf or you can purchase preformatted documents at most office supply stores or even via the Internet.
Arranging for the disbursement of your inheritance property requires little time and can save your family months, if not years, of stress and angst.
If you haven't already done so, now is the time to begin estate planning.
As a recipient of inheritance property it's important to understand that both state and federal inheritance taxes must be paid in a timely fashion.
Inheritance taxes are governed by each individual state.
Some states do not impose inheritance taxes at all.
If you reside in a state that imposes inheritance tax the amount of tax you pay is based on the fair market value of the property.
If you receive a cash inheritance you would be wise to invest all or part of the money.
Oftentimes people who receive a cash inheritance indulge in a spending spree and purchase unnecessary items.
This is by far one of the biggest mistakes you can make.
If you have never invested before, now is the time to educate yourself about investment opportunities.
Don't jump in blind.
Take time to conduct research and develop an investment strategy that can help you reach future financial goals.
Many investment opportunities exist including: certificates of deposit (CDs), money market accounts, annuities, stocks, bond, mutual funds, and real estate.
Start by conducting research via the Internet or attend investment seminars.
A word of caution - investment information can be found for free.
Be leery of companies charging large sums of money for investment opportunities.