Message Font: Serif | Sans-Serif
No. of Recommendations: 4
I would also note that it is not really an "earlier inheritance" if the will is not adjusted to recognize the early gifting.

This isn't just theoretical. It happens.

I had a distant relative who passed away. No children - never married. My understanding was that she wanted to leave some portion to a charity and the remainder to some of her slightly distant relatives (grand niece/nephew, I think) who had helped her continue to live at home for her final 10 years or so.

Before she died, she decided to give a significant gift to the charity. Then she made some kind of notes on a copy of her will that their inheritance had been taken care of. After she died, the charity was having none of that and contested the will. They eventually won, and got the specified portion of her remaining estate.

Rumor has it that the extended family (which includes my aunts and uncles) never gave to that charity again.

The lesson to be learned is that it's fine to give some kind of "early inheritance", but you need to make sure your estate documents properly reflect your intentions. Just like JAFO said.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.