Family tensions over inheritance
For many Australians, a home represents the largest financial asset they possess, making the decision to leave real estate to loved ones in a will a significant one. Personal finance author and radio host Dave Ramsey recently addressed a situation involving a man named Jeffrey, who found himself at the center of family tensions following an inheritance.
Jeffrey, 32 and debt-free except for his mortgage, shared his story in an email to TheStreet from Ramsey Solutions. His grandmother, who had passed away a few months prior, left him her house, property, and approximately 0,000. Jeffrey had been her primary caregiver, living in the same town and assisting her as she aged, fulfilling her wish to avoid a care facility.
However, this inheritance sparked discord among his relatives. “Some of my relatives said they deserve something,” Jeffrey wrote. “Two have even accused me of wanting everything she had and turning my grandmother against them. I don’t like what’s happening, but I’m not sure what to do. I never asked her for anything.”
Ramsey responded with empathy, acknowledging the emotional strain such situations can place on families. “I hate it when things get ugly between family members, especially at a time when everyone should be pulling together and supporting each other,” he wrote. “I’m sorry you’re going through all this.”
Ramsey highlighted the importance of recognizing the love and care Jeffrey had shown his grandmother, suggesting that her decision to leave him her assets was a testament to their bond. “Did you love your grandmother? It sounds to me like you did. A lot!” Ramsey continued. “It takes a special person to step in and help the way you did. I think it’s pretty obvious she loved you, too.”
Financial advice and options
Ramsey then delved into the financial aspects of the situation, offering practical advice to Jeffrey. He acknowledged the complexity of the inheritance and the potential for family disputes, suggesting that Jeffrey consider the possibility of transferring part of his inheritance to other relatives, even if it wasn’t specified in the will or trust. “Generally speaking, it’s possible to transfer part of your inheritance to someone else,” Ramsey noted. “However, you might need to seek court approval for such a transfer, depending on the jurisdiction and specific family circumstances.”
He also pointed out the option of allowing those who are unhappy with the grandmother’s decision to contest the will. “Or, you can let anyone who has a problem with your grandmother’s decision contest the will,” Ramsey advised. He cautioned, though, that this could lead to significant legal expenses. “One possible outcome of that is you might have to spend the money she left fighting them in court,” he warned. “The lady left what she left. There’s no more. It was her house, her property and her money. The others aren’t entitled to what she had just because they’re relatives or they want it.”
Ramsey emphasized the importance of seeking professional financial advice to navigate the complexities of the inheritance. “I’d also recommend sitting down with a good financial planner — someone with the heart of a teacher — and talk about how best to handle your newfound inheritance,” he suggested. “Regardless of your decision, it’s always best to have a plan and be prepared.”
He concluded his advice with a note of reassurance, reminding Jeffrey that he had done nothing wrong. “In the meantime, don’t beat yourself up over this, son. You haven’t done anything wrong,” Ramsey wrote. This empathetic approach aimed to alleviate some of the emotional burden Jeffrey was experiencing, while also providing him with actionable steps to manage the financial implications of his inheritance.
