Getting an inheritance can have a major impact on your assets. Many people, therefore, wonder what the best way is to invest that money. Save? Investing? And what if you prefer to pass the money on to your own children immediately? What you need to know.
For many people, an inheritance – provided it does not consist of debt – will be a welcome financial injection that helps to realize a number of plans (accelerated), such as the payment of the home, the purchase of a new car…
If you don’t have to spend the money right away, you can also save or invest it. Here the classic questions apply. Do you already have sufficient savings buffer? What do you want to save for? How long can you miss your money? How much knowledge and experience do you have with financial investments?
You then draw up a savings and investment breakdown based on your expectations and, of course, your current financial situation. Is your financial buffer still limited, and do you absolutely want to avoid losses? Then it is best to opt for savings and investment formulas with fixed returns. Do you already have a large buffer, and are you comfortable with a little risk in exchange for a higher return? Then the fair and fair-related products are also eligible.
People are living longer than before; As a result, many people are already at an advanced age before they receive an inheritance from their parents, for example, while they themselves are largely ‘out of the box’ and no longer have any money worries, but do have young adult children who would like to give them a financial boost in the back.
You can then choose to let the inheritance skip a generation and pass it directly from grandparents to grandchildren. These are also two birds with one stone: you are doing your own children a favor, and you only have to pay inheritance tax once instead of twice.
Since the reform of inheritance law, anyone who has children is free to dispose of half of their inheritance. In other words, grandparents can also give half of their inheritance directly to their grandchildren. The other half still goes to their own children. Children are so-called reserve heirs: they are always at least entitled to their share.
Nevertheless, there are possibilities to deviate from this. The first is the rejection of the estate by the children in favor of the grandchildren. Please note: this concerns the entire legacy. The decision also rests with the children, not with the testator. In this case, the inheritance tax is paid once.
Parents can also pass on the part of the inheritance they received from their parents to their children. If they do so within the year, no inheritance tax is due on the transferred part. In other words, they no longer have to pass on their inheritance in full: it is also possible in part. This transfer must be done through the notary. In addition, they do not have to pass on the inherited property or securities themselves, its value is sufficient.