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Yahoo
15 hours ago
- Business
- Yahoo
Got a big inheritance coming your way? You may want to just say no. Here's why.
An inheritance often is seen as a financial windfall, but there are times when people may want to consider saying thanks, but no thanks. Receiving a sizable gift, if not structured properly, can have unintended consequences that may upend your financial situation or cause friction between family members. If either of those is the case, consider refusing it, experts said. It may not be worth your time, money or emotions. 'It's very important what type of asset you're inheriting -- what it can do for you and if it fits into your universe, and are you the best custodial of those assets,' said Miklos Ringbauer, certified public accountant in Southern California. The so-called great wealth transfer has begun. Nearly $124 trillion in assets will change hands through 2048, according to estimates by the consulting firm Cerulli Associates. Recipients are expected to inherit some $106 trillion of that amount, mainly from baby boomers, with the rest going to charity. Assets passed down will include cash and other liquid assets, stocks and bonds, real estate, business interests, retirement accounts, other investments, and personal property. Saying no to an inheritance isn't typical, and experts suggest you consult with a financial planner and an accountant to help you determine if it's right for you. However, some instances in which you might want to consider refusing an inheritance include if: Inheriting assets would increase the size of your estate and potentially create tax planning complications for your own heirs once it's time to pass your assets on. Accepting certain assets, such as money in an IRA or 401(k), leaves you with a big tax bill because you'd have to pay taxes on distributions, Ringbauer said. Distributions from accounts like a 401(k) or IRA are considered income, not capital gains, and could push you into a higher tax bracket. They also do not receive a step-up basis, meaning the cost basis would remain the same as the original owner. Inheriting assets causes a rift in the family. 'If mom has four kids and leaves a daughter a little bit more, if daughter takes it, people will say she stole it or mom doesn't love me as much,' said Patrick Simasko, elder law attorney and financial adviser at Simasko Law. 'If she loses relationships with her siblings, she shouldn't take it because of the emotional drama.' Accepting property that's too hard to manage or unsellable. 'Look at it before you accept,' Simasko said. 'You may not want it.' Examples include large vacant lots in isolated areas and timeshares. Neither are easy to sell but will cost you annual fees the rest of your life, he said. Claiming an inheritance can push you above income and asset limits to qualify for government programs like Medicaid or Supplemental Security Income (SSI). However, it isn't as simple as disclaiming an inheritance to stay within the limits because refusing an inheritance is seen as gifting, which also isn't allowed. Because disclaiming an inheritance can still hurt you, some experts suggest you take the inheritance and spend it down immediately to requalify for benefits. Medicaid recipients can use their inheritance to pay off debt, pay for long-term care, make home modifications for safety and accessibility, prepay funeral and burial expenses via an Irrevocable Funeral Trust, or buy assets that are exempt from Medicaid's asset limit such as furniture and appliances for one's home, clothing, or upgrading a vehicle, according to the American Council on Aging. The best way to avoid this is to ensure the 'parent doesn't leave the person money,' Simasko said. 'Use a special trust instead and the person can draw from it.' For example, assets to a beneficiary of an irrevocable trust don't affect the beneficiary's assets and wouldn't count against their qualification for government benefits, Ringbauer said. Yet, the beneficiary would be able to tap those assets. The legal process is 'disclaiming' an inheritance, which means you're refusing to accept the rights to the assets you were supposed to inherit. Here's generally how it would work: Nine months to disclaim. Since it can sometimes take up to six months to get all the paperwork – letter disclaiming, signed, and maybe notarized and witnessed, and delivered -- there's no time to waste once you discover there's an inheritance out there you don't want your name on, Ringbauer said. Disclaiming is irreversible. Once disclaimed, you can't change your mind. You must not have received any benefits or taken possession of the asset before disclaiming. Check state rules. Every state has its own rules on inheritances so you need to check those to make sure you're compliant. Disclaimed inheritances will go to the next person, or beneficiary, in line. You can't choose the person to receive the asset. If there isn't another person named as a next beneficiary, the asset would go through the probate process to be left to someone related to the deceased. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: Why you might want to walk away from your inheritance
USA Today
21 hours ago
- Business
- USA Today
Got a big inheritance coming your way? You may want to just say no. Here's why.
An inheritance often is seen as a financial windfall, but there are times when people may want to consider saying thanks, but no thanks. Receiving a sizable gift, if not structured properly, can have unintended consequences that may upend your financial situation or cause friction between family members. If either of those is the case, consider refusing it, experts said. It may not be worth your time, money or emotions. 'It's very important what type of asset you're inheriting -- what it can do for you and if it fits into your universe, and are you the best custodial of those assets,' said Miklos Ringbauer, certified public accountant in Southern California. Why should people think about inheritance now? The so-called great wealth transfer has begun. Nearly $124 trillion in assets will change hands through 2048, according to estimates by the consulting firm Cerulli Associates. Recipients are expected to inherit some $106 trillion of that amount, mainly from baby boomers, with the rest going to charity. Assets passed down will include cash and other liquid assets, stocks and bonds, real estate, business interests, retirement accounts, other investments, and personal property. When might you want to say no? Saying no to an inheritance isn't typical, and experts suggest you consult with a financial planner and an accountant to help you determine if it's right for you. However, some instances in which you might want to consider refusing an inheritance include if: Beware, tricky government benefits Claiming an inheritance can push you above income and asset limits to qualify for government programs like Medicaid or Supplemental Security Income (SSI). However, it isn't as simple as disclaiming an inheritance to stay within the limits because refusing an inheritance is seen as gifting, which also isn't allowed. Because disclaiming an inheritance can still hurt you, some experts suggest you take the inheritance and spend it down immediately to requalify for benefits. Medicaid recipients can use their inheritance to pay off debt, pay for long-term care, make home modifications for safety and accessibility, prepay funeral and burial expenses via an Irrevocable Funeral Trust, or buy assets that are exempt from Medicaid's asset limit such as furniture and appliances for one's home, clothing, or upgrading a vehicle, according to the American Council on Aging. The best way to avoid this is to ensure the 'parent doesn't leave the person money,' Simasko said. 'Use a special trust instead and the person can draw from it.' For example, assets to a beneficiary of an irrevocable trust don't affect the beneficiary's assets and wouldn't count against their qualification for government benefits, Ringbauer said. Yet, the beneficiary would be able to tap those assets. How to decline an inheritance The legal process is 'disclaiming' an inheritance, which means you're refusing to accept the rights to the assets you were supposed to inherit. Here's generally how it would work: What happens to the disclaimed inheritance? Disclaimed inheritances will go to the next person, or beneficiary, in line. You can't choose the person to receive the asset. If there isn't another person named as a next beneficiary, the asset would go through the probate process to be left to someone related to the deceased. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
Hindustan Times
3 days ago
- Business
- Hindustan Times
Social Security payments on June 25: What to do if you haven't received your benefits
Social Security payments are one of the main sources of benefits for many Americans. Millions of Americans are set to receive up to $5,108 in their bank accounts. Those with birthdays between the 21st and 31st of any month will receive their Social Security payments for this month on June 25. The schedule of Social Security payments depends on factors such as the beneficiaries' birth dates, Newsweek reported. Social Security payments for this month will be credited on June 25. If you haven't received your benefits, here's what to do(REUTERS) Also read: Social Security payments on June 25: Who will receive up to $5,108? Details here Ideally, the beneficiaries should wait for three working days before contacting the Social Security Administration regarding missed payments. The working days do not include Saturdays, Sundays and public holidays. If your Social Security payment is delayed even after three working days, get in touch with your local SSA branch for details. You can also check with your bank to find out if there have been any delays. Social Security: July 2025 calendar Social Security benefits are to be paid on the following dates in July: July 1 - Supplemental Security Income (SSI) payments. July 3 - Retirement benefits for people who have been collecting checks since before May 1997 and retirees who also claim SSI benefits. July 9 - Retirement, survivor and spousal benefits for claimants born between 1st and 10th of any calendar month. July 16 - Benefits for individuals born between 11th and 20th. July 23 - Benefits for beneficiaries born between 21st and 31st. Social Security June 25: What's the average benefit you can receive? In May 2025, $2,002.39 was the average benefit a retired worker received, as per SSA data. The Social Security amount changes from time to time as the benefits are calculated based on a worker's highest 35 years of earnings. The amount a beneficiary receives is also based on their lifetime income and the age at which they start collecting benefits. People who retire at the age of 62 can expect up to $2,831 per month. Those who retire at 67 may get up to $4,018. Individuals who delay their retirement up to 70 years can get monthly benefits up to $5,108. FAQs: What is Social Security? It is a group of government programs designed to provide financial aid to individuals and families. It replaces a percentage of an employee's pre-retirement income based on their lifetime earnings, as per the official website. How much is the monthly Social Security payment? The amount varies depending on several factors such as lifetime income and age when the worker starts collecting benefits. When will the Social Security July 2025 benefits be paid? The money will start arriving in the bank account of the beneficiaries from July 1.
Hindustan Times
4 days ago
- Business
- Hindustan Times
Social Security payments on June 25: Who will receive up to $5,108? Details here
Millions of Americans will be getting their Social Security payments this week, with up to $5,108 set to be transferred into the bank accounts of the beneficiaries. According to Pew Research Center, about 73.9 million people across the United States received benefits from at least one of Social Security's programs, as of April 2025. Most of them are retired workers (52.6 million). Social Security Payments will be credited on June 25(AFP) The Social Security Administration (SSA) beneficiaries comprise over a fifth of the entire US population. Not all claimants receive their payments on the same day, as there are a large number of beneficiaries. Retirement, spousal and survivor benefits are usually sent out throughout the month, depending on the recipient's birth date and whether they get any additional payments, such as the Supplemental Security Income (SSI). Benefits will be paid to the claimants on June 25. Those born between the 21st and 31st of any calendar month will be receiving the payments. People are advised to wait for three working days before getting in touch with SSA if they do not receive the expected payment as per the schedule. Saturdays, Sundays and all public holidays are not working days. The Social Security amount In May 2025, the average retired worker benefit stood at $2,002.39, SSA data shows. This was the first time it breached the $2,000 mark. The amount changes from month to month as benefits are based on a worker's highest 35 years of earnings, Newsweek reported. Money received by a beneficiary is determined by several factors, such as their lifetime income, along with the age they choose to begin collecting benefits. People retired at the age of 62 can expect up to $2,831 per month, while waiting until 67 increases the benefit to $4,018. Those who delay it until 70 get monthly benefits up to a maximum of $5,108. In May, the SSI payments made to blind and disabled Americans was $718.30 on average. It was sent to 7.4 million people. Social Security: July 2025 calendar In the coming month, Social Security benefits are to be paid on the following dates: July 1 - SSI payments July 3 - Retirement benefits (People collecting checks since before May 1997 and retirees who also collect SSI benefits) July 9 - Retirement, spousal and survivor benefits (Born between 1st and 10th of any calendar month) July 16 - Benefits for people born between 11 and 20 July 23 - Benefits for those born between 21 and 31 FAQs: 1. What is Social Security? Works as a source of retirement income, Social Security replaces a percentage of an individual's pre-retirement income based on their lifetime earnings. 2. How much money will I get as a Social Security benefit? The amount changes on a monthly basis and depends on person to person. The benefits are based on the highest 35 years of earnings. 3. What to do if you don't receive Social Security payment? If the SSI payment is not paid on time, SSA recommends that you wait for at least three business days and then get in touch with your local SSA office.
Yahoo
4 days ago
- Business
- Yahoo
She Thought Her SSI Ended At 18 — Now She's Worried Her Mom May Still Be Collecting It
A young woman recently shared her story on Reddit, saying she believed her Supplemental Security Income stopped when she turned 18 — but was shocked to learn that payments were still being deposited into a bank account associated with her mother. Now she's worried that this could lead to serious consequences, for both herself and her mom. If you or someone you know receives SSI for a disability, this situation highlights why it's important to stay informed about how benefits work after age 18 — and what to do if something doesn't seem right. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can SSI is a needs-based program for individuals with limited income who are blind, disabled, or over 65. When a child receives SSI due to a disability, eligibility is typically reviewed when they turn 18. At that point, Social Security uses adult disability criteria to determine whether the benefits should continue. If benefits continue, they are paid directly to the adult or to a representative payee — someone who manages benefits on their behalf. But if a person stops receiving benefits, they should receive a notice by mail. In the Reddit case, the woman said her mom received such a letter when she turned 18, so she assumed payments had stopped. Later, she learned from the Social Security Administration that benefits were still being paid monthly — to a bank account at her mom's bank. It's unclear whether the payments were supposed to continue based on a qualifying disability, or if the SSA made an overpayment due to a clerical error or missing paperwork. She said she didn't think her mom would lie, and also mentioned that her mom doesn't manage her finances closely because of stress and may not be aware of the additional payments. Regardless of the intention, if Social Security paid benefits in error, the SSA could try to recover that money. Trending: Maximize saving for your retirement and cut down on taxes: . According to the SSA, overpayments happen for various reasons — including failure to report changes, misunderstandings about eligibility, or delays in paperwork. If you receive money you weren't entitled to, Social Security may ask for it back. The amount and timeline can vary. The SSA reviews overpayments on a case-by-case basis. You have the right to: Appeal the overpayment if you think it's incorrect. Request a waiver if the overpayment wasn't your fault and you can't afford to repay it. Flexible payment plans are often available, sometimes as low as $10 per month. The SSA may investigate if someone knowingly accepted or used benefits they weren't entitled to. In some cases, this could be considered fraud — but intent matters. If the mother was unaware or believed the benefits were legitimate, the situation might simply require correction and repayment. The SSA typically works with families to resolve these matters, but waiting too long can complicate things. One commenter on the Reddit post noted that if the issue isn't resolved within 60 days, the agency could pursue action against both the daughter and the you're over 18 and receive — or previously received — SSI for a disability, you should call Social Security directly to confirm the status of your benefits. If benefits are still being paid, ask: Where the funds are going If you are still eligible What your options are if an overpayment occurred Social Security will only speak directly to the adult beneficiary once they turn 18 — not their parents — so it's important to make the call yourself. Mistakes can happen, but the sooner they're addressed, the more options you'll have to fix them. Read Next: Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article She Thought Her SSI Ended At 18 — Now She's Worried Her Mom May Still Be Collecting It originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
