How to Handle an Unexpected Inheritance
If you recently received a letter or a telephone call telling you that you just inherited a
small fortune from a long lost relative, you probably feel as though you just hit the
lottery. The next thought is likely “What do I do with the money?“ If you are already
financially secure, then you can probably answer that question yourself. If you are like
the vast majority of people though, suddenly inheriting a large sum of money can be both
exciting and terrifying. By following some simple advice you can help ensure that the
money you inherited will provide you with the most bang for your buck so to speak.
Seek Professional Advice: If you do not have a financial manager and an estate
planning attorney, this is the time to retain them. You need professional, personal
advice to ensure that your money and your estate are managed well.
Educate Yourself: Hiring advisors is certainly a good idea, but so is educating
yourself. If you don’t know what a mutual fund is, or an IRA, then how can you
decide whether or not to invest in them?
Don’t Forget about Taxes!: Every dollar that you spend may have tax
consequences. Understanding what taxes may apply, and how to minimize them,
will help your money last longer.
Don’t Quit Your Day Job: Unless you inherited multi-millions, don’t quit your
day job right away. By investing your inheritance wisely, you may be able to
retire early whereas depending on it entirely may mean it runs out long before
Prioritize the Money: Decide where your financial priorities are before you spend
anything. Paying off debt, for example, may be more important than buying a
Plan for Your Child’s Inheritance: Someone cared enough about you to include
you in their estate plan. Shouldn’t you do the same for your family? Now is the
time to create and estate plan or update an existing plan.
Experienced estate planning attorneys Worcester MA of the Law Offices of James A. Miller estate
planning and business planning resources to residents of Worcester MA. To learn more about these free
resources, please visit www.worcester-estate-planning.com/ today.