Unexpected inheritance...

[CPA]

On the taxes:

Okay, look, be careful who you get advice on here. Her is the simple answer on the taxes:

Feds:

There is no "Inheritance Tax". Instead, it's an estate tax paid for by the estate - not you! And for it to be taxable to the estate, the estate must be over $2M.

State:

Many states do have "inheritance Tax", but the rate is dependent on the state and your relationship with the deceases. But most taxing states have exclusions and exemptions, so check your state rules. At the very most, you could pay 20% to the state at the onset, but could get that back at year end.


Also, you can't get around the tac consequence unless you donate the money to a charity.

 

[Evadman]

Originally posted by: rsd
No offense but from reading your post I would strongly advise against going into a "business venture", and rather pay off your debts.

What RSD said.

 

[Kev]

Pay off your debt and be more financially responsible in the future. Not having debt is a great feeling.

 

[KeithTalent]

Originally posted by: tfinch2
You mean you didn't get left 8 apartment complexes in Beverly Hills?

For the life of me I cant find that thread. It was a good one too IIRC.

KT

 

[Ichinisan]

Originally posted by: CPA
On the taxes:

Okay, look, be careful who you get advice on here. Her is the simple answer on the taxes:

Feds:

There is no "Inheritance Tax". Instead, it's an estate tax paid for by the estate - not you! And for it to be taxable to the estate, the estate must be over $2M.

State:

Many states do have "inheritance Tax", but the rate is dependent on the state and your relationship with the deceases. But most taxing states have exclusions and exemptions, so check your state rules. At the very most, you could pay 20% to the state at the onset, but could get that back at year end.


Also, you can't get around the tac consequence unless you donate the money to a charity.

Thanks. You are the reason I come here!

 

[theprodigalrebel]

Originally posted by: tfinch2
You mean you didn't get left 8 apartment complexes in Beverly Hills?

I vaguely remember that thread - can't remember if it was later proved to be shens though.

 

[Bignate603]

Do some easy math... look at your APR for your credit card. It's probably 15-20%. For a business venture to be better than paying off your debt you need a guaranteed 15-20% return a year. There are very few business ventures that can do this.

Pay off the debts, then take your normal monthly payment for your credit cards and invest it. If you have a $500 a month bill that's $6000 a year. If you can get a measly 6.5% off a mutual fund or something that means after 10 years you'll have $84k in savings.

 

[iroast]

My opinion is that you should pay off your debts ASAP since the interest rate will be a huge burden should your business go under.

If you are 95% certain that your business will pay off handsomely in a few years, then go for the investment.

 

[thomsbrain]

Originally posted by: rsd
No offense but from reading your post I would strongly advise against going into a "business venture", and rather pay off your debts.

I 100% agree. Pay your debt first. That will free up your normal income to eventually start your "business venture." If you aren't responsible enough to manage your personal finances now, what makes you think you're going to be responsible enough to manage a business on borrowed money?

 

[jagec]

You've got over $24,000 in high-interest debt and you're thinking about starting a business?

Pay off your debt first!

 

[Special K]

Originally posted by: theprodigalrebel

Originally posted by: tfinch2
You mean you didn't get left 8 apartment complexes in Beverly Hills?

I vaguely remember that thread - can't remember if it was later proved to be shens though.

Here it is

 

[SuperjetMatt]

Not the answers you wanted to hear, hum?

 

[Foxery]

Sounds like the perfect time to take control over your own finances, rather than letting someone you *know* is irresponsible keep her fingers in your affairs for one more minute.

Get your existing bills under control, then see how much you have left. It will benefit your life much more than buying new toys while remaining in debt.

 

[Juddog]

I can speak from experience, and say you should pay off your debt first.

Here is why: think of what most savings accounts offer: 3 to 5 % interest. Now take a look at how much you're paying for your credit cards - 8 % if you're lucky, or as much as 24 % if you miss a payment. By paying off your debt, you are basically giving yourself a 24 % interest savings. If you sit down and do the math you will realize paying off the debt is really the best way. I learned this the hard way.

 

[mb]

Forget the business venture or paying off your debt, just give me the money.


Idiot.

 

[orakle]

Pay your debts first.

 

[Gibson486]

debt is this thing that keeps biting you in the ass. just pay it off.

 

[waggy]

Originally posted by: Chiropteran

Originally posted by: Ichinisan

Paying off credit and other debts between my brother, mother, and I would immediately use it all up. It would probably make better sense to turn the cash into a profitable venture, so that the profits would provide financial relief, and eventually benefit.

NO NO NO NO NO.


No.


No.




Pay off your debt.



Do *not* spend the money on a "profitable venture".



If you really want to do a "profitable venture" pay off your debt and then get a loan for the "profitable venture" afterwards.

If you can't get approved for the loan, take that as a sign that it was never meant to happen.

agreed.

consider that something like 70% of all new business fail. now you are out of the money and still have the debt. pay off the debt then if you want try for a business. but get that debt down.

 

[Ichinisan]

Scrapping the business idea isn't a big deal.

I thought it might be reasonable to buy a large quantity of items @ wholesale and sell for immediate profit. It would probably be too risky. My impression is that wholesale costs for movies and game software is extremely cheap, but there is a steep "minimum order" requirement. If it was SAFE to purchase wholesale items and sell immediately for a high profit, I would kick myself for not doing it. However, I wouldn't know where to start.

I guess a financial adviser would be the way to go.

Regarding the relative: My grandmother is much loved in our family. I am sad that she has passed, but I was never able to bond with her like the rest of my family that lives on her side of the country. I have only ever accumulated a few months with her in my life. The last significant amount of time I spent with her was when I was 12. I visited for a month. She has lived on the other side of the country and my mother, brother, and I were too poor to do any more traveling than that while I was growing up. By the time I was an adult, she was already being cared for by a family member and her age made it hard to have a conversation with. I have seen her a few of times since, but it was too late to grow a bonding relationship. She didn't even recognize the people that she lives with.

 

[Miramonti]

You seem too old and independent to be worrying about what your mom would do with it. It sounds wierd that you even mentioned it as a concern. I understand not wanting to tell her due to the awkwardness that she didn't get any tho.

 

[Ichinisan]

Originally posted by: jagec
You've got over $24,000 in high-interest debt and you're thinking about starting a business?

Pay off your debt first!

They are not "high-interest". Most of the debt is low-to-no interest.

 

[Ichinisan]

Originally posted by: mb
Forget the business venture or paying off your debt, just give me the money.


Idiot.

Capital idea!

 

[MrChad]

Pay off your debt and get control of your own finances. It's not difficult to do and it's long overdue for someone your age.

 

[Phokus]

Pay off the debt and get a loan for the small business venture ftw?

 

[takeru]

Originally posted by: thomsbrain

Originally posted by: rsd
No offense but from reading your post I would strongly advise against going into a "business venture", and rather pay off your debts.

I 100% agree. Pay your debt first. That will free up your normal income to eventually start your "business venture." If you aren't responsible enough to manage your personal finances now, what makes you think you're going to be responsible enough to manage a business on borrowed money?

agreed. as said, if you can't even fully control your finances now, what makes you sure you can run a business? and you depend on your mom to warn you of bills and such, even though you say no one trusts her with money and you have no time? considering how much more financial responsibility its gonna be running the business on top of what you have now, i highly doubt you will have time to maintain everything, and its gonna come down hard in the end. get the debt paid off first.