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Inheritence & Sudden Wealth

Inheritence

Inheritence

Receiving an inheritance can be overwhelming, especially when it comes after the loss of a loved one. Many children and young adults find themselves navigating complex financial decisions during an already emotional time.

The truth is, the decisions you make with an inheritance can sometimes be permanent. There are IRS rules, tax implications, and deadlines that can catch families off guard. From understanding inherited IRA rules, to handling lump-sum payouts, to making smart investment choices, you don’t want to go it alone.

How We Work

With the right guidance, you can:

  • Honor your loved one’s legacy by putting the money to meaningful use.
  • Understand IRS timelines and rules so you don’t make costly mistakes.
  • Explore your options—whether that’s saving, investing, or using funds for important goals.

What to Do When a Loved One Passes Away

It’s important to acknowledge that grief comes first. While some steps need to be taken fairly quickly, not everything has to be done right away. Here are a few practical steps to help guide you when the time feels right:

  • Request Certified Copies of the Death Certificate
    • Most financial institutions, insurance companies, and government agencies will require this. It’s wise to request at least 10–15 copies from the funeral home or county office.
  • Notify Employers, Insurance Companies, and Financial Institutions
    • Contact life insurance companies to begin the death claim process.
    • Reach out to banks, investment firms, and retirement account custodians.
    • Retirement accounts (IRAs, 401(k)s) and life insurance policies pass directly to named beneficiaries.
    • Be mindful: inherited IRAs and other accounts have strict IRS rules and timelines (often a 10-year rule to fully distribute the account).
  • Locate Key Documents
    • Wills, trusts, Social Security cards, marriage certificates, military records, deeds, and account statements.

Pause Before Making Big Decisions

It’s an emotional time, you don’t need to decide everything right away. Avoid rushing into investments, large purchases, or major financial commitments. While it’s important to notify insurance companies and certain institutions relatively soon, many of the deeper financial decisions can wait until you’ve had some time to grieve. A good rule of thumb: start the death claim process within a few weeks, but give yourself space before making long-term decisions about how to use or invest the inheritance.

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