Just received an inheritance? What to do next
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If you’ve recently inherited money and aren’t sure what to do next, that’s completely normal — it can feel overwhelming, especially without a clear place to start.
In this article we look at five things that can help you cope with and navigate your way through this time.
Inheritance is a word that can cause much discussion, as well as silence. And that’s totally understandable, considering the many reasons why you can be suddenly forced into taking on the role of managing an inheritance.
When someone is faced with managing an inheritance, often there’s a fear of getting it wrong; of doing the right thing. A common phrase we hear is, “I don’t want to stuff it up.” There’s all the emotional feelings that come to the surface. And the burden that can come with it.
Our first word of advice is that you don’t need to navigate this time alone. And we can help you look towards the inheritance with a sense of calm, peace and gratitude; rather than apprehension.
As a start, here’s five key points to consider.
1. Take your time
Exhale, there’s no rush.
There’s much to consider and deal with after the loss of a family member. Give yourself the freedom and space to grieve and reflect.
People often think they have to make quick decisions. You don’t. In fact waiting to start addressing the inheritance 6 or 12 months after saying goodbye is very normal.
Acknowledging and appreciating the things that come along with bereavement like the emotional connections with family and friends is so important. Depending on the circumstance, coming into money from an inheritance can bring up many feelings – guilt, embarrassment, relief, excitement. That’s a wave of emotions to work through.
Take a breath, and address the inheritance in your own time.
Here is the ATO’s checklist of what to consider managing a deceased estate.
2. Define what’s important
Once you’re ready, start the conversation around goals or what you’d like to do with the inheritance. Big or small.
For some it’s using the money to make an impact through giving. Others may wish to continue it as a legacy through the family by passing it onto their children. Then there’s all the practical applications like paying down debt or the mortgage for financial security.
There’s no right or wrong answer for how you choose to use the inheritance.
The key is taking your time to define what you want, and what’s important to you. If you’re comfortable and able to do this yourself that’s perfectly fine. Or you can turn to an advisor to help talk you through your options.
Again, there’s no need to rush.
3. Consider your options
One of the advantages of talking to a trusted specialist like a financial advisor is they can explore all of the options open to you and how best to structure your finances to meet your inheritance goals.
At Tribeca, we start with a ‘Get To Know You’ call — a conversation with no agenda other than understanding your situation, your goals, and what a Good Life looks like for you. There’s no obligation and no pressure. From there, your advisor can map out a path forward that’s genuinely tailored to where you are.
An advisor is qualified to provide advice on managing important considerations like:
- Debt reduction
- Investment advice
- Contributions to superannuation
- Cashflow implications
- Tax minimisation
- Adjusting or adopting personal risk insurances.
Like anything in life, when you’re so close to something it’s hard to stay objective, so a trusted advisor can help extrapolate your goals and build a financial strategy that ensures you can maximise the benefits of the inheritance.
4. Have the money conversation
It’s easier to manage an inheritance (and take your time when you need to) if you’ve already been open with family members before that day comes.
Talking about money is hard for many Australians, especially our older generation. So talking about money and mortality can be a challenging subject to broach, but you owe it to yourself and your family to have these conversations. You can then make clear and considered decisions and reduce much of the financial and emotional burden that can come with an inheritance.
We have seen people come to us who have shied away from talking about inheritance options and estate planning, and have then faced disputes and uncertainty around entitlements and obligations. It’s not worth it ending up in the courts because you found it too difficult to have these difficult conversations.
Please remember, it’s OK to talk about money. In fact, it’s essential to living a Good Life.
5. Consider your own estate planning
While we’re on the subject of inheritance, are your own affairs in order? We see (more than we’d like) people who either don’t have a will, have one that isn’t valid and enforceable, or is no longer relevant to their current circumstances.
Don’t be one of these people to leave your legacy literally at the will of the courts.
A will is one of the most important documents you’ll ever put in place — not just for yourself, but for the people you love. Without one, or with one that’s out of date, families can find themselves navigating legal complexity at an already difficult time. Updating or putting a will in place doesn’t have to be complicated. We can connect you with the right specialists to get it done properly.
At Tribeca, we’re here to help you with your estate planning and inheritance advice, as well as connect you with a range of legal and financial specialists to ensure you’re in the best position to live your Good Life and provide for those dearest to you.
Listen to Lahra Carey’s story about being widowed without a Will.
Inheriting while supporting family
Many people navigating an inheritance are doing so while also thinking about their own. If you’re helping ageing parents while raising or supporting your own children, you may be part of what’s known as the ‘sandwich generation’ — facing financial and emotional pressure from both directions at once.
Coming into an inheritance during this life stage can feel particularly complex. There are decisions to make about the estate, questions about what to do with the funds, and often a growing awareness of how important your own financial structure has become.
If this sounds familiar, it may be worth reading our article on the sandwich generation — and thinking about how advice can help you balance the needs of those you’re supporting with your own financial future.
If you’ve recently received an inheritance — or you’re thinking ahead — we can help you work out your next steps.
Start with a conversation. Our get to know you call is obligation-free, and it’s designed to help you understand your options before you commit to anything. Book your get to know you call here.
Client story
When one of our clients came to us six months after losing her father, she was carrying a lot at once. There was an inheritance to navigate, a decision about whether to hold or sell a property, and a daughter she was still doing her best to support — all while trying, for the first time in a long time, to put herself first.
What she needed wasn’t just financial advice. She needed someone to listen, help her slow down, and build a plan around what mattered most to her: paying off her home, investing for the long term, and securing something for her grandchildren.
Her advisor helped her structure the inheritance in a way that aligned with those goals — including placing funds in a long-term investment that, when she comes to access them, will carry no capital gains tax liability. The advice also put her on track to pay off her mortgage.
Our client commented, “This certainly is a journey, as much about emotions and family dynamics as it is about money.”
FAQs
There’s no set deadline for deciding what to do with inherited money, though some aspects of estate administration — such as contesting a will — do have time limits. Most people take six to twelve months before making significant financial decisions, and that’s entirely reasonable. There’s no need to rush.
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