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How to Write a Letter of Distribution for an Inherited Money

When you inherit financial means from a relative, it’s often the case that they’ll try to help you navigate the complex world of financial management, estate planning, and philanthropy. They may even hand you the keys to their multimillion-dollar empire, a beautiful country home, and a private jet. But, in order to take full advantage of this generous offer, you need to understand the most efficient and effective way to give back to society. To that end, they’ve prepared a letter of distribution, which is a legal document that allows you to efficiently and accurately distribute your assets upon your death.

Letting people know how you’ll distribute your wealth is a key step in establishing yourself as a responsible, generous human being. It shows that even though you may be very wealthy, you have the foresight to know that there are people who are less fortunate than you and that you’re dedicated to making sure everyone is treated fairly. Writing a letter of distribution is a fantastic way to ensure that your relatives know how you want your estate to be handled and that they comply with your wishes. It also lets your loved ones know that even though you’re dying you’ve still got a few tricks up your sleeve. You’re not going to let them ruin this amazing opportunity to fill their heart with joy and your fortune with meaning!

The Letter of Distribution

You may have received a letter from your bank or brokerage firm, asking you to confirm that you’ve received your inheritance and to allow them to proceed with the transfer. This kind of letter is called a ‘letter of receipt’ and is a common occurrence once you’ve been provided with a death certificate. What you need to do is to have this letter notarized, complete with the proper witnesses, and then re-issue it as a letter of distribution. This is a legal document that needs to be prepared with the proper legal terminology and follows a specific format, which you can find online or through a legal publisher. Once you’ve got that taken care of, let your family know that you’ve got the paperwork done and are waiting for the final say on how you want to distribute your assets.

Why Should You Distribute Your Wealth?

Giving back is an important aspect of being a good person, and it’s something that people who inherit wealth should be sure to do, if they really want to achieve inner peace. However, you may still want to keep some of your wealth for yourself, even if you plan on giving away the rest. It’s your business to figure out what’s best for you – you may decide that you want to keep some of your wealth for your kids’ college educations or perhaps a rainy-day fund for a nasty surprise. Whatever you decide, it’s a common misconception that you need to give away all of your wealth, or else society will be unjustly enriched. The truth is that you can keep some of your wealth and still play a philanthropic role through your charitable donations. The key is in the way you choose to distribute your assets.

Making The Right Choice For The Right Reasons

Choosing the right charitable organization to which you want to donate is a critical decision. It’s not always easy to discern which organization is the most effective in helping others, but you can start by considering the type of work the organization does. Does it provide healthcare services to the poor? Does it work with at-risk youth or young adults to keep them off of the streets? Does it focus on environmental issues, ensuring clean air and water for all? Consider the reasons you’re donating to the charities you’ve selected and make a judgement call as to whether or not they’re the right fit for your financial means. It’s also important to consider the source of the funds you’re donating with. Do they accept government grants or are they privately funded? It’s a good idea to contribute to charities that are privately funded, as they tend to be more efficient and effective at using your money than those which rely on government funding. Finally, it’s important to consider how much you need to give. Some charities may require large donations while others may be satisfied with smaller contributions, so consider what’s most comfortable for you.

Setting The Right Example

You’re more influential than you think you are. Your family, friends, and strangers alike will look up to you and your decision to give back, particularly if you make a public display of your good deeds. When you write a letter of distribution, you set the example for how you’ll distribute your wealth. It’s not something you’ve got to do, but it’s a perfect way to ensure that your family, friends, and future benefactors know what you want and how you want your estate to be distributed. As you write your letter, take time to consider how you’ll go about fulfilling your duties as an ethical, responsible human being. You don’t have to go overboard and give away your entire fortune, but you can ensure that your family knows that you’ve given them your thoughts on the subject.

Final Words

Your letter of distribution is a powerful tool, one which allows you to structure your will, set your financial goals, and begin the process of giving back to society, all with the stroke of a pen. It’s not something you need to rush, as there’s no statute of limitations on ensuring your wishes are carried out. However, you may want to get the letter notarized, once you’ve had it properly drafted, as it makes the process of giving smoother, more efficient, and less prone to errors. Ultimately, as with all legal documents, you need to follow the proper process and ensure that your letter is filled out correctly, but once you’ve got that over with, you can sit back and relax, knowing you did everything you could to make sure your estate is handled just as you wanted it to be. This was especially important to you and your family, as they’ll have to navigate this complex world of finance, philanthropy, and probity on their own. For that, you’re thankful that they’re still a part of your life despite your death, and that they know exactly what you want them to do with your money. Writing a letter of distribution is a crucial step in establishing yourself as a responsible, ethical individual who knows how to give back.