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I just inherited a large sum. Now what?

On Behalf of | Sep 28, 2022 | Estate Planning

Picture this. You just received news that a distant relative has died and left millions of dollars in your name. On the one hand, you might be excited since you’re now wealthy. But on the other hand, you might worry that other people will find out about it and pester you for money. What do you do at this point?

Before you panic, take a deep breath and empower yourself with strategies to handle your newfound riches. If you’re concerned about taxes, you’d be glad to know that Illinois does not have an inheritance tax. There are plenty of other ways you could lose money, though. Here are some ways to keep it safe:

Only tell trusted individuals about your inheritance

If you struggle with keeping your riches a secret, share the news with family members and buddies you know won’t tell others your business without your consent. You wouldn’t want total strangers — or worse, so-called friends — to come out of the woodwork and attempt to inveigle their way into getting money from you. 

Handle your inherited funds responsibly

There’s nothing wrong with splurging on something now and then. However, if you go too far with careless spending, you might find yourself back at square one or deeply impoverished. Once you’ve tackled any debts and purchased some luxuries, put the rest of the money in savings or into an investment account to prepare for future expenses. 

If applicable, take on an heir of your own

If you have children, nieces/nephews or other potential heirs, you can put any spare funds into a trust or will for them. This method not only puts the money to good use; it ensures that your loved ones are financially comfortable after you pass on.

You can start by reaching out for legal help to address any of your inheritance questions or concerns.

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