What is an inheritance?

An inheritance refers to assets, money, or property that are passed down from one generation to another, typically from parents to their children, upon the death of the individual who owned the assets. This concept is rooted in the idea of transferring wealth and possessions to the next of kin, ensuring that family legacies can be preserved and enjoyed by subsequent generations.

This definition encompasses physical items like real estate or personal belongings, as well as financial aspects such as cash, stocks, or other investments. Inheritance can play a significant role in an individual's financial planning and can impact overall wealth distribution within families. Understanding this concept is essential for effective financial literacy, as it involves considerations of estate planning, taxes on inheritance, and the management of received assets.