What to Do If You Get an Inheritance
So, you've received an inheritance. First things first — take a deep breath. Whether it's a little or a lot, an inheritance can be a life-changing opportunity. But it can also feel overwhelming, especially when it comes with the weight of losing a loved one.
The good news? You don't have to figure it all out alone. The best move you can make is to chat with a professional who can help you navigate your next steps. Let’s break it down.
Step 1: Hit Pause
It’s completely okay to do nothing right away. Grief is a lot to process, and you don’t need to make big money moves overnight. Give yourself time and space before making any decisions.
Step 2: Call in the Experts
Now’s the time to assemble your financial dream team. This usually means:
A Financial Advisor to help you build a plan that aligns with your goals.
A Tax Professional to walk you through any tax obligations that might come with your inheritance.
An Estate Lawyer if there are legal complexities, especially if you've inherited property or investments.
Seriously, this is not the time for a DIY job. A pro will help you avoid common mistakes and make choices that set you up for long-term success.
Step 3: Understand What You've Inherited
Inheritances can come in different shapes and sizes. Some common types include:
Cash (the most straightforward)
Property (like a house or land)
Investments (shares, ETFs, or managed funds)
Superannuation or Life Insurance
Collectibles or Heirlooms
Your financial advisor will help you figure out what each type means and how to manage it wisely.
Step 4: Make a Game Plan
Once you've got the right advice, it’s time to put together a plan. Depending on your situation, this might include:
Paying Off Debts: If you’ve got high-interest debt, like credit cards or personal loans, clearing that can be a powerful first step.
Building an Emergency Fund: If you don’t already have 3-6 months' worth of expenses saved up, now's your chance.
Investing for the Future: Whether it’s topping up your super, starting an investment portfolio, or buying your first home, your advisor can help you make your money work for you.
Treating Yourself (Within Reason!): It’s okay to celebrate a little. Maybe that’s a small getaway or a nice dinner — just keep it aligned with your financial goals.
Step 5: Avoid Lifestyle Creep
A sudden influx of cash can tempt you into upgrading your lifestyle, but slow and steady wins the race. Before making big purchases, check in with your financial advisor to ensure your long-term goals stay on track.
Step 6: Keep Learning
Money management is a lifelong journey. Investing in your financial literacy can help you make confident decisions about your inheritance and beyond. Consider reading personal finance books, taking courses, or listening to podcasts (psst, might we suggest She’s on the Money?).
Final Thoughts
If you’re feeling overwhelmed or unsure, remember that getting professional advice is the best decision you can make. They’ll help you honour your loved one’s legacy by putting your inheritance to good use — whatever that looks like for you.
You’ve got this. And if you ever need a little extra support, we’re always here to help you along the way. 💛
***Please remember our blogs aren’t intended as financial advice - they’re intended only as a starting point to give you a little extra info! For more in-depth advice catered to your personal financial position, please see a certified financial advisor.