Editor’s note: The following post previously ran in the print editions of Ravellette Publications.

Sequels are never as good as the original, but this column’s actually Part II, so that maxim doesn’t apply.

Anyway, to recap, last month, we reviewed the sunsetting of the estate exemption and discussed the Great Wealth Transfer from the perspective of those leaving money behind.

So now, let’s talk about what happens if you’re the one inheriting the wealth.

You might think the inheritance part of all this wealth transferring would be the easy part. However, it comes with its own set of challenges.

First, if you know or believe you’ll be inheriting something — whether that’s land, a business, or money — make sure to have conversations with the person leaving you the wealth. Get a general idea of what the assets are, how they’re titled, and how they’ll be distributed.

It can be tough to approach someone with the assumption you’ll be getting something when they die. But knowing what to expect will help you start to get a handle on your potential net worth so you can protect and manage it.

If you’re having trouble finding an inroad to start the conversation, be honest with the person and acknowledge the awkwardness. You can try something like, “This is uncomfortable for me to bring up, but I get the feeling I might inherit something from you at some point in the future. I’m not trying to be too presumptuous. If you are thinking of leaving me something, having a general idea of what that might be can help me plan so I can take care of whatever it is.”

Keep in mind that whatever you’re set to inherit could change drastically before you ever come into possession of it. So, if you’re set to inherit the family ranch, market fluctuations can increase or decrease the value of the land or the business. Or maybe your relative will need to draw down funds because they require long-term care for an illness or disability. Even so, having an idea of your inheritance means you can start educating yourself before the day arrives when you receive your inheritance.

Also, keep up with your financial education. Whether you’re 35 or 55, make sure you understand budgeting, making financial decisions, managing credit, and the factors that affect your credit score.

Even if you expect a large inheritance, having a retirement plan like a 401(k) or IRA is never a bad idea. Find a financial advisor you trust, someone who can give you advice about your retirement and your inheritance. They can help you make a plan that will evolve with your circumstances and goals.

Our free end-of-life planning guide on our new website can help those leaving behind assets as well as those receiving them. You can get the guide here or by calling our office to have a hard copy mailed to you for free.

If you need help with estate planning and wealth transition, let us know.