How to plan and prepare for an inheritance
What does it mean to disclaim inheritance?
Claiming an inheritance
Ideas for what to do with your inheritance
- Pay off high-interest debt
- Create an emergency fund of at least 3–6 months of essential expenses
- Revisit your investment plan with an advisor
- Invest in yourself by going to back to school or taking a sabbatical
- Spend some. There are ways to spend some of your inheritance that also honor the spirit of your loved one. Maybe you need a safe, new car or a long-overdue vacation with your spouse or the whole family.
- Give to charity. You may want to donate some of your newfound money to charity because of either potential tax implications or your increased ability to make a difference, or both. Charitable gifts can be made to honor your loved one as well. It could be a memorial plaque or bench in a meaningful location—or it could be a donation to a cause they supported. Depending on the size of your donation, you might simply write a check, donate appreciated assets, or consider a more formal arrangement.