If you receive an inheritance from a parent or someone else who passes away, you’ll want to consider more than just how to spend that money. There are some important ways to transfer some kinds of inheritance to reduce any taxes, fees, or penalties, and taking the time to fully settle an estate and get everything transferred over matters. Here are a few important tips on how to manage an inheritance.

Get Guidance to Manage Significant Wealth

For anyone who’s going to inherit a lot of money, or even a lot more than they’re used to having, getting the right guidance is very important. It can be all too easy to overspend if you’re not used to freely having money, but that’s not the only concern. You also want to invest it wisely and use it properly, along with making sure you don’t get taken advantage of. When you seek out professional guidance you can manage an inheritance more easily and have peace of mind.

Retirement Accounts Need Proper Handling

When people inherit from deceased loved ones it’s not always just money in a bank account, a house, or a vehicle. You may also be a beneficiary on a retirement account, for example. If you are, then you want to make sure you’re moving that money correctly to avoid penalties. Ideally, you’ll want to transfer it to your own retirement account. If you plan to do something else with it, though, talk to a financial advisor first, so you understand the pros and cons.

Don’t Overspend, Even When It’s Tempting

It can be very tempting to go out and buy all the things you want and need with your inheritance, but you might be surprised how quickly that money will dwindle. Even if it seems like you’ve inherited quite a bit of money, resist the urge to just start spending it. Instead, take the time to set up retirement and high-yield savings accounts with the majority of the money. Then you can pay off debt, see what you have left, and enjoy some of it responsibly while still improving and helping secure your financial future.

The estate planning process includes all steps required to protect your assets and lifestyle during your lifetime and then ultimately transfer your remaining wealth to beneficiaries…all based on your specific goals and terms. Contact us today to learn more!