How can an individual shelter assets they received from an inheritance?

A will has stated that one person (non-relative) is to inherit everything ( house, car, money). Select relatives (siblings and nephews) are very likely to contest it. What should the intended recipient do with these assets before or during legal actions?

Financial Planning, Estate Planning
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June 2017

Forget about the will and concentrate on naming legal beneficiaries for all your retirement accounts and transfer-on-death (TOD) statements for non-retirement accounts.  Those supersede a will and are very difficult to contest.  With a house, transfer-on-death is usually not allowed in many states, but if you put your house into a trust then the will can state that the trust goes to one person whom you can name as the trustee and recipient.

If you want to be on the safe side, a better method for a house is to add that person's name to the deed.  The person may have to pay capital gains taxes eventually on the price appreciation but that is better than risking a court challenge.  It is very difficult to contest a legal deed which has already been registered.

June 2017
June 2017
June 2017