If you find yourself overwhelmed and with some anxiety after receiving a large inheritance, you’re not alone. This can be a stressful situation for many people because the influx in assets could be the biggest sum of money that they’ve ever had to be individually responsible for. There are some things you must consider in order to put those assets to work as effectively as possible.
The first is to set aside a cash cushion for emergencies. In addition, you’ll also want to think about the benefits of estate planning. There’s a good chance that the inheritance you just received is due at least in portion to well-prepared estate planning and now is a great time to ensure that these assets continue on if something were to happen to you before these assets can be used.
If you have not yet put together a trust or a will, now is the appropriate time to do so. If you already do have estate planning, receiving a large inheritance should encourage you to review these materials with a fine-tooth comb to ensure that you have articulated what will happen to these assets if you were to suddenly pass away. You may wish to schedule a consultation with an estate planning attorney to discuss things such as guardianship, wills versus trust, maintaining separate property and powers of attorney. Having the insight provided by an experienced lawyer can help you to figure out the next steps that you should take to protect yourself as well as to make the most of the inheritance you have just received.