Sometimes an expected inheritance is an important resource in a financial plan. To enter this resource in an Income Lab plan, simply add it as an “Other Income” item. You can do this a few different ways. You can enter the inheritance via the plan data stepper (accessed from the pencil icon anywhere in the application) as shown here.

You can also enter new ‘Other Income’ items in Life Hub by clicking “+ Add New” in the upper right of the screen and choosing ‘Income’ from the options at the top of the screen. Leave the ‘Subcategory’ set to ‘Other Income’.

Because money received through an inheritance is not treated as subject to income tax, be sure to set the ‘Tax Treatment’ as ‘Not Taxable’. If the household is in a state with state inheritance of estate tax, or if you expect the household to be subject to Federal estate tax, you can change the value in the ‘Amount’ field to be the amount expected net of these transfer taxes. Income Lab does not automatically calculate inheritance or estate tax.

Since the amount and date of an inheritance are typically uncertain, it is a good best practice to be conservative in estimating the amount (don't overstate) and timing (setting this to be later in the plan is more conservative).