You’ve Inherited Money, Now What Should You Do?

Preston Rosamond |

When you’re preparing to receive an inheritance, where do you even begin? The loss of a loved one is often an emotional experience, so managing an inheritance can be overwhelming.

No matter the amount you receive—from relatively modest and straightforward to substantial and complex—it’s important to prepare to manage your inheritance in the most efficient way. The Rosamond Financial Group team has taken the time to share the following steps to help guide you through the process. These steps provide a framework to help you navigate the intricacies of managing an inheritance while establishing your own legacy.

Take a Moment

Before making any decisions about the money, you need to process the loss of your loved one. Failing to deal with your grief can result in emotional spending that compromises the money you’ve just received. If you give yourself some time, you may become more sensitive to your loved one’s wishes or have the chance to clear your head of complex emotions. 

If your loved one spent their life building and protecting their wealth, they probably hoped you’d do the same. Letting your inheritance sit for a minute can help you overcome the initial temptation to splurge on something like a fancy vacation or expensive new home. If it’s important to you to honor their legacy, don’t forget to take care of your own emotions to protect the wealth they’ve gifted to you. 

Understand the Type of Inheritance You’ve Received

Common types of inheritances include:

  • A trust account or cash
  • A retirement account such as an IRA or 401(k)
  • A house or other property

Knowing and understanding the types of inheritance you’ve received impacts how you access the funds, any taxes associated with it, and what your options are moving forward. 

For example, if you inherit a home but don’t want to live in it, you may need to learn more about potential capital gains taxes before deciding to sell the property. If you find that a capital gains tax would be too costly, you might explore another option, such as renting out the house or living in it temporarily as you assess your situation. 

Likewise, inheriting a retirement account comes with its own set of considerations, particularly if you inherit the retirement account from a non-spouse. Regardless of the inheritance you receive, it’s best to contact a tax-planning or financial professional who understands the intricacies of inheritance situations. 

Take Stock of Your Financial Situation

Once you understand the type of inheritance you’ve received, you’re better equipped to align your plans for the inheritance with your other financial goals, such as: 

  • Contributing to your retirement account
  • Paying down your mortgage
  • Saving for your children’s college education
  • Giving to a charity or foundation you care about
  • Buying a vacation home or taking your family on vacation

Team Up With a Trusted Professional

It is wise to seek out reliable guidance when making a significant financial choice, such as what to do with an inheritance. An experienced and knowledgeable financial advisor can give you objective support while helping you make the most of your inheritance for a sound economic future.

Are you looking for a financial advisor who truly puts your well-being at the forefront? At The Rosamond Financial Group, we strive to make difficult financial goals attainable. We provide customized services to meet your individual needs and financial objectives. Our team is here to help you create a comfortable and stable future. Contact us today for a consultation by calling my office at 830-798-9400 or emailing See what clients are saying about working with us.

About Preston

Preston Rosamond is a financial advisor and the founder of The Rosamond Financial Group Wealth Management, LLC with over two decades of industry experience. He provides comprehensive wealth management and financial services to successful business owners, corporate executives, and affluent retirees who enjoy simplicity and seek a professional to help them pursue their goals. Preston personally serves his clients with an individual touch, a sincere heart, and his servant’s attitude is evident from the moment you meet him. Learn more about Preston or start the conversation about your finances with him by emailing or schedule a call on his online calendar.