Inheriting A Windfall

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Money (Photo credit: 401(K) 2013)

Say you received a nice inheritance. Do you just go out and start spending willy-nilly?

Best not to, according to a story posted on dailyfinance.com.

Figuring out how to handle a sudden windfall is an issue many boomers are now facing and doing it the right way is important.

The first thing you should do, experts say, is nothing.

That’s right. Take a period of time to think about it. Inheriting all that money may be great but it takes planning and analysis and, because you may still be grieving, it may be best to take it slow, the story says.

The first things to do include contacting Social Security and the Dept. of Veterans Affairs if applicable, obtain a death certificate and, of course, make funeral arrangements.

Then, after a couple of months, the story says you should open a checking account, contact your loved one’s life insurance company, close joint checking accounts and pay bills.

After six months or more, you can start thinking about gifting money, moving or starting an investment plan.

People not used to managing large sums may be overwhelmed, the story points out. And people may come out of the woodwork looking for handouts. Best to send each of them a letter saying your financial advisor has said for you not to make any decisions about the money until your situation has been fully assessed and your long-term situation determined.

 

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