Why Receiving an Inheritance Should Prompt an Estate Plan Review

Receiving an inheritance can be both meaningful and life-changing. While it often represents a loved one’s legacy, it can also introduce new financial, legal, and planning challenges if it is not managed thoughtfully. Without a clear strategy, inherited assets may be vulnerable to mismanagement, creditor claims, tax exposure, or unintended distributions.

If you have received (or expect to receive) an inheritance, it is important to create a comprehensive estate plan or revisit your existing one. Updating your plan allows you to align your new financial reality with your long-term goals, protect inherited assets, and ensure that your legacy continues in the way you intend.

How an Inheritance Can Change Your Financial Picture

An inheritance can significantly alter the size and complexity of your estate. Whether you inherit real estate, a business interest, investment accounts, or other substantial assets, your existing estate plan may not address how those assets should be managed, protected, or ultimately distributed.

A sudden increase in wealth can also affect your tax exposure. In some cases, inherited assets may push the total value of your estate closer to, or beyond, federal or state estate tax thresholds, potentially increasing the taxes owed at your death. In addition, if your estate plan does not account for the inheritance, it may create unintended imbalances among beneficiaries, particularly if some heirs receive more than others as a result.

Receiving an inheritance is an appropriate time to revisit key planning questions: Who should benefit from your estate? In what proportions? And under what conditions? While your existing plan may already provide for children or grandchildren, you may want to reassess whether the distribution still reflects your intentions given your expanded resources. Some individuals choose to increase charitable giving, provide for additional family members, or use trusts to offer long-term protection and oversight for beneficiaries who may be less experienced with managing wealth.

Preserving Family Wealth Across Generations

It is often said that family wealth rarely survives beyond a few generations. While this claim is sometimes overstated, studies consistently show that long-term wealth preservation depends heavily on planning, communication, and shared values—not just financial success.

One of the most common obstacles to preserving inherited wealth is a lack of open conversation. Families may avoid discussing inheritance because money can be an emotional topic, or because older generations worry that transparency will lead to entitlement or conflict. However, silence often creates confusion rather than protection.

Productive conversations do not need to begin with numbers. Instead, they can focus on shared values, expectations, and the purpose behind the wealth. Working with trusted legal and financial professionals can help families establish a framework that balances privacy with clarity, promotes responsible stewardship, and fosters trust across generations. A thoughtfully designed estate plan provides the legal structure needed to support these goals and reduce the risk that assets will be lost to mismanagement or disputes.

The Value of Professional Guidance

An inheritance can be a lasting benefit or a missed opportunity, depending on how it is handled. Estate planning is not a one-time event, and major life changes, including receiving an inheritance, should prompt a careful review of your plan.

If you have received an inheritance or anticipate one in the future, professional guidance can help you evaluate tax considerations, protect assets, update beneficiary designations, and ensure that your estate plan reflects your current circumstances and long-term intentions.

Contact us today to discuss how to incorporate an inheritance into your estate plan and protect your family’s legacy for generations to come.