Broker Check

Inheriting money and financial windfalls

As odd as it may seem, when a person receives a large sum of money, there are some important things to be done (or not done) in order to ensure that windfall can stand the test of time.

Initially, it is best to just do nothing. Don't make any rash or impulsive purchases or investments until you feel like you are in control and making rational decisions. In some instances, a surviving spouse who receives a large death benefit may squander it immediately, by buying all those things that "needed" to be bought or by giving overly large gifts to children to help them out. Be sure to think through your long term priorities and how this windfall will fit into these goals.

Important things to consider:

  1. Implications on taxes
  2. Shore up your existing financial situation so that you have a safety net
  3. Plan for the future and ensure you are clear on what your goals are
  4. Splurge – but do it thoughtfully and cautiously

The Granite Wealth Management team has tremendous experience helping clients deal with sudden windfalls. Contact us to discuss our approach.