Inheritance income cards allow you to reflect a one-time future inheritance within a client plan.
You can add an inheritance into RightCapital within the Income section of the Profile (or the Income step of the initial data entry process), by clicking Add Income > Other > Inheritance:
When the Inherited asset is set to 'Cash and Investment', income will first be used to fund cash outflows in that year. The remainder will be saved and reinvested into the client's taxable investments.
- When inheriting a 401k or IRA (traditional or Roth), the income will not be used to fund cash outflows and will instead reflect as Planned Savings into the appropriate account bucket.
The inheritance will be tax-free within the projections. Inheritance income can be tracked within the Retirement > Cash Flows > Summary page, by clicking into the Other Inflows column.
