Losing someone you love is hard. And when that loss comes with an inheritance, the emotions can get even more complicated. Whether you’ve inherited money, property, or other assets, you might be wondering: What do I do next?
Before you rush into any decisions, take a breath. This unexpected windfall has the power to shape your financial future—but only if you handle it thoughtfully. Here’s what to do if you’ve just received an inheritance.
Step 1: Keep It Safe (Seriously—Don’t Skip This)
If you’ve received a cash inheritance, the very first thing you should do is secure it. That means putting it into a separate individual account, like a savings account in your name only. Not a joint account. Not your regular checking account. Just a safe, no-frills place where the money can sit while you figure things out.
Why? Because the moment you mix inherited money into a joint account (with a partner, spouse, or anyone else), it may become joint property—and that can get legally messy fast.
This step isn’t about doing nothing. It’s about giving yourself space to make smart, clear-headed decisions when you’re ready.
Step 2: Think About Your Goals—Not Just Your Wants
It can be tempting to immediately spend your inheritance on a big vacation or a new car. But take a beat. An inheritance is more than a windfall—it’s an opportunity to fast-track your financial goals.
Ask yourself:
- What financial goals am I working toward?
- Can this money help me make a big leap—like buying a home, paying off debt, or investing in my future?
- How can I honor the legacy behind this gift?
Now’s a great time to sit down with a CERTIFIED FINANCIAL PLANNER™ who can help you weigh your options. They’ll help you explore saving, investing, or even giving back—without compromising your own security.
Step 3: Check for Any Tax Implications
The good news? In most cases, inheritances aren’t taxed when you receive them. But that doesn’t mean taxes are off the table altogether.
Here’s what to keep in mind:
- The estate (the person’s total assets at death) may be subject to taxes before the inheritance reaches you.
- Certain types of assets (like retirement accounts) may have tax rules or withdrawal requirements you’ll need to follow.
- What you do with the inheritance—like investing it or earning interest—might have tax consequences down the line.
This is where an accountant or your financial planner can help you navigate the fine print.
Step 4: Take Your Time
Grief is messy. And decision-making while grieving? Even messier. So don’t feel pressured to make big money moves right away. Instead:
- Keep the money safe
- Talk to professionals you trust
- Give yourself time to plan
This isn’t just about money—it’s about how you want to move forward with intention, clarity, and care.