There are enough tough decisions that need to be made throughout the day-to-day grind of life. That’s why thinking about what happens afterwards is sometimes even more difficult.

But it’s also necessary.

Having a plan in place for when you pass on is just as important as having a plan in place for college, a career, and even retirement. Because chances are, there are people who care about you and also count on you to some degree, whether it be for emotional support or financial support. From your spouse to your children to your grandchildren, there is likely no shortage of those who would be put in a difficult position should the unthinkable happen.

Similarly, you’re put in a difficult position when deciding who should inherit all of the wealth you’ve accumulated over the years. The fruits of your hard work and sacrifice have accumulated nicely throughout your life, and deciding who reaps the benefits of that hard work isn’t always cut and try.

Fortunately, there are a few tips available for you when deciding who should inherit your wealth.

If you’re worried about creating a conflict, for instance, you may want to consider donating your money to charity, leaving your inheritance to a fund or no one in particular, or even splitting it up evenly over the course of several years.

But if you’re trying to decide the best way to discover who should inherit your wealth, consider the following first.

Evaluate Your Situation

Maybe, if you did things the right way, you invested in a retirement fund to carry you through the later years in your life. Some of these plans expire when you pass away, or even lock up your remaining investment so that no one can access the funds. However, if you have a smart retirement investment plan, such as the Fixed Income Fund, that’s not something you have to worry about. With the Fixed Income Fund, your money is secure throughout the duration of your note.

Our answer to the traditional fixed annuity has more to offer than other products, because it is designed to pay out a stable, consistent monthly income no matter what. That means you’ll still receive your payments even if one of our asset loans is non-performing, a loan is being foreclosed on, or even if you pass away during year three of your 10-year note, for instance. If the latter happened to be the case, then you can rest assured that your beneficiaries will receive the full remaining interest payments left on your plan, in full accordance with your investment terms.

What’s more, they will also receive a final principal payment when your investment reaches maturity. That’s because, backed in real estate mortgages and trust deed loans, the Fixed Income Fund is an illiquid investment. However, in the event of your death, it may also be possible for your beneficiaries to receive the principal of your investment early through liquidation (see our contingency reserve plan here), but that is not a guarantee due to contingencies on many market variables at that time. Still, with the Fixed Income Fund you can experience peace of mind that your wealth will be distributed consistently, fairly, and in full even in the event of your death.

Evaluate Their Situation

If you’re considering leaving your inheritance to children, a spouse, or other family members, it’s important to first consider what their own personal financial situation is. While you may have done things the right way, and saved for a full and healthy retirement, with little to no debt, have you taught them the importance of doing the same? Evaluate the ages, health, and finances of each of your possible beneficiaries, keeping in mind that if you have a younger beneficiary it may be wise to distribute their inheritance over time so as not to put them in a dangerous situation with too much money at once. You’ll also want to consider how your wealth might be spent; If you have a child who is planning wisely, and making good investments and money decisions, you may be more inclined to leave a considerable portion to them because you know your dollars will go a whole lot farther than if you leave it with a less responsible beneficiary.

Choosing A Beneficiary

Now that you’ve fully evaluated your retirement savings, as well as the situations of your potential beneficiaries, it’s time to choose who should inherit your wealth. Depending on your situation, there is no shortage of options. Who stands to benefit the greatest from inheriting your wealth? Who do you trust the most? The first consideration should go to your own family members, if applicable. Here are a few of your potential family options.

  • Your Spouse: This would seem to be the most logical choice. You and your spouse have obviously lived a long and prosperous life together. Leaving the majority of your wealth to your spouse after you pass can help them cope with the financial hardships they will be left to deal with, from things like taking over mortgage payments to funeral arrangements and more.
  • Children: The next most logical choice would be to leave your wealth to your kids. If you have multiple children, deciding how to split it up might be the most difficult part. Consider splitting it equally, or take into account the tips we laid out above by evaluating the situation of each. You should consider holding an open discussion while you’re still here in order to clearly state your intentions from the get-go or to promote logical solutions to any potential conflicts.
  • Charity: Perhaps a less-utilized but still well-known third option could be leaving your wealth to charity. If you don’t have a set beneficiary, this could be an impactful way to divvy up your funds when you pass on, allowing you to help others in need while leaving your mark and ensuring your hard work was not for nothing. Consider donating a portion (or all) of your wealth to a cause about which you are passionate, and you will feel safe and secure in your decision.

Contact Tactical Wealth today to learn more about our Fixed Income Fund and what happens to your investment after you pass.