The theme this week on the Retirement Quick Tips Podcast is: What to do with a $300,000 inheritance

Today, I’m talking about waiting to make any major decisions for at least 6-12 months. For those of you who have received an inheritance, you know that it can sometimes be a lengthy process. For an estate going through the probate process, it can usually take about 9 months to complete. 

On the one hand it’s good because you won’t have instant access to inheritance dollars in this case. However, in the case of inheriting assets from a trust or an IRA, the estate is settled much quicker meaning that you’ll receive the inheritance much much sooner. 

Regardless of how long you’ll need to wait before you have access to inheritance assets, it’s important that you wait several months before making any major decisions. Why? 

There are several reasons why you would want to wait. 

1. You’re likely going through a period of grieving and so is the rest of your family. It’s never a good idea to make major financial decisions in a state of emotional turmoil or grief. Waiting 6-12 months allows time for the grieving process and to have a clearer head. 
2. Unfortunately, there can also be disagreements with other heirs. Too many people die without having their estate planning ducks in a row. This creates ambiguity and confusion, and can lead to some nasty arguments and resentments. Waiting to 
3. Many inheritances involve deciding what to do with a house and other property. Not only that but there is often 30 years worth of stuff in the house that needs to be dealt with, and this just takes time. 
4. Uncle Sam could come a knocking, so you want to have paid any estate taxes before you start making big changes or big financial decisions, since the tax bill may surprise you, and not in a good way. 
5. And perhaps most importantly, taking 6-12 months allows you to be more careful, thoughtful, and actually make a plan for how you will save, spend, and invest the inheritance.

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.  

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance