Get Your Business Funded: Creative Methods for Getting the Money You Need

Inheritance

There are two ways to use an inheritance for a business.

The first is the inheritance that you have not received yet; that is, an inheritance you expect to get. You may be sure that you are going to get that inheritance, but truly, a person can change a will or trust at almost any time before their death. As such, this first method actually deals with the expectation of an inheritance.

Do you really want to ask your grandfather (for example) for an advance on that expected inheritance? That is the question you must ask yourself. If the answer is yes, then you begin this process by having a chat with the person from whom you expect to get the inheritance. Needless to say, this can be a very tricky, touchy, verging on tacky discussion, so first and foremost it must be handled delicately.

The important thing is to make the giver understand that it is a smart move on their part. There are two ways to do this:

1. First, explain how you see the money being used in your business and how it is a good use of the potential gift. This is where a business plan will come in handy. Although Gramps will likely never read it, he will feel better knowing it is there.

2. Second, explain that there are tax considerations involved. Currently, the tax code allows someone to give a gift of $13,000 ($26,000 if it is to you and a spouse) tax free. If the amount you want is more than that, the giver and you will need to consult with an estate lawyer so as to determine how best to make the ...