Two
years ago, Mr. Harris couldn't scrape together enough funds to start a business
that delivered healthy meals. So, he decided to approach his mother for an
early bequest. The money would be coming to him anyway, he figured, and she
would be able to see him put the cash to good use.
As an entrepreneur you might be
on the verge of rolling out the next big thing in the marketplace. Should you
ask your folks for an early inheritance to foot the bill?
The Wall Street Journal considered this matter in an article titled “Cash-Strapped Entrepreneurs Seek Early
Inheritances,” with ideas for parents and their entrepreneurial heirs
alike.
In an economy starting to show
some signs of life, many business plans that have been mothballed are being
reconsidered. As an heir, is it ok to want your inheritance now? As a parent,
is it ok to give it up early? Well, yes to both.
All parties concerned must be
mindful of tax issues, as well as future financial needs that include planning
for retirement, old age, health issues and even the rest of the estate.
The original article explores
the emotional aspects of this issue, too. Indeed, it can be difficult to ask
for an early inheritance and, conversely, it can be difficult being asked for
an early inheritance.
Regardless, whether you are
asking or being asked, you will need competent legal, accounting and financial
counsel to guide you. You do not want the potentially competing dreams of
business success and a secure retirement to turn into nightmares for all
concerned.
Please
visit our website for information on
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The archive on our website contains numerous blog posts on these legal
areas as well. You can also “friend” us
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Reference: The Wall Street
Journal (August 19, 2013) “Cash-Strapped Entrepreneurs Seek Early
Inheritances”