Navigating an inheritance is a journey, and it’s a need to pause at the trailhead before you start walking—that’s wisdom, not weakness.
Inheritances come bundled with emotions (grief, gratitude, uncertainty), sudden decisions, and sometimes a chorus of opinions from family. On top of that, there’s the “now or never” feeling—the sense that you must act fast, or risk making a mistake. But here’s a gentle truth: you don’t have to rush. Most important financial decisions benefit from a little breathing room.
Why Wealth Transfer Planning Matters—Take a Breath Before Making Big Moves
Think of inheritance like a basket of seeds, not a pile of fireworks—if you scatter them impulsively, you might get a quick flash, but with patience and wealth transfer planning services, you can grow a beautiful, lasting garden. And every seed—every asset—has its own needs and quirks.
Each asset, account, or property can have its own set of rules, taxes, and paperwork. A financial advisor who specializes in inheritance (or an estate attorney) can help you see your financial picture, mapping out a plan that fits your values and future goals.
CPA (Certified Public Accountant)
You are going to need help from a CPA once you have a sense of what assets you’re dealing with, and before you make any big moves (like selling a house or taking money from an IRA). These pros are your tax experts—the number crunchers who keep you on the IRS’s good side.
- Explain tax implications of what you’ve inherited (income tax, capital gains, estate tax, etc.).
- Help you file any necessary tax forms, especially if the inheritance is complex (like an IRA or trust).
- Advise on timing withdrawals or sales for best tax efficiency.
Estate Attorney (or Estate Planning Attorney)
Legal eagles! They specialize in wills, trusts, probate, and all things law-of-the-land when someone passes away.
- They help sort out the will, trusts, and any legal steps required to transfer assets.
- Guide you through probate if it’s needed (the legal process of settling an estate).
- Set up your own estate plan if you want to pass things along smoothly in the future.
- Protect you from legal missteps or family disputes.
Bring them right away, if there are complex legal questions, multiple heirs, trusts, or if you’re not sure who gets what.
Financial Advisor
Think of them as your financial coach or navigator. They help you see the big picture: investments, saving, spending, and long-term planning.
- Assess your new financial situation.
- Help you create a plan for how to use, invest, or distribute what you’ve inherited.
- Advise on how an inheritance fits into your goals (retirement, buying a home, supporting family, philanthropy, etc.).
- Explain investment choices, risk, and diversification in plain language.
When to call them? Pretty early! Especially if you’re feeling overwhelmed or unsure how new assets fit into your life.
Other Possible ‘Dream Team’ Advisors
Look for professionals with credentials (CPA, CFP®, J.D., etc.), experience with inheritance issues, and—most importantly—someone who communicates clearly and listens to your goals (ask for referrals from friends, family, or your bank.)
- Insurance Agent—Reviews life, property, and liability insurance—important if you inherit real estate or valuable items.
- Trust Officer (at a bank) – Sometimes helps manage trust assets if your inheritance comes through a trust.
- Appraiser—If you inherit art, jewelry, or collectibles, they’ll help you figure out what things are really worth.
Interview everyone you need—because it’s totally okay to ask questions about how they work, what they charge, and how they’ll help you. Think of them as your advisory council. The financial advisor helps you dream, the CPA keeps it tax-smart, and the estate attorney makes it all legal and smooth. Ideally, they’re willing to talk together (with your permission), so your plan is seamless.
Different Types of Inheritance: IRA vs. House
Inheriting an IRA (Individual Retirement Account)
- Tax Implications
Big deal here! If you inherit a traditional IRA, you’ll likely owe income tax on withdrawals. If it’s a Roth IRA, you may get the money tax-free, depending on how long the account was open.
- Required Distributions
New rules (“10-year rule”) say most non-spouse heirs must empty the account within 10 years. That means you can’t just leave it to grow forever.
- Strategy
Often it’s better to spread out withdrawals to avoid jumping into a higher tax bracket in a single year.
Inheriting a House
- Tax Implications
You usually get a “step-up” on a cost basis. That means if you sell the house soon after inheriting, you probably won’t owe much in capital gains tax.
- Practical Decisions
Do you keep it, rent it out, sell it, or maybe share it with family? Each choice has its own ripple effects—both financial and emotional (God’s ways are inscrutable.)
- Ongoing Costs
Property taxes, maintenance, insurance, and maybe mortgage payments.
Smart Steps to Take After Receiving an Inheritance
#1. Pause & Take Inventory
Don’t rush and give yourself a moment to process emotionally and mentally. Make a simple list of what you’ve inherited: cash, bank accounts, retirement accounts, real estate, investments, personal property, debts. Then find and organize key documents: will, trust, account statements, property deeds, insurance policies.
#2. Secure the Assets
Make sure real estate, valuables, and important documents are physically safe (change locks if needed, secure storage, etc.). Also, important to notify banks or institutions about the inheritance if required.
#3. Get the Lay of the Land—Solo First
Research the basics about each asset (Google is your friend here!) and note anything unusual, confusing, or high-value so you know where you might need help. And, do not touch or move money/assets yet unless absolutely necessary.
#4. Handle Immediate Legal Musts
If you’re executor: file for probate if required by your state or country (sometimes you can do this yourself for small/simple estates). Perhaps, the first thing to do was to order multiple copies of death certificates—they’re needed for banks, insurance, etc. Don’t forget to notify Social Security and pension providers if applicable.
#5. Triage: Identify the Complicated Bits
- Simple assets (cash, paid-off car, basic checking account) – You might be able to transfer these yourself with the right paperwork.
- Complex assets (trusts, IRA/retirement accounts, stock portfolios, real estate with a mortgage, businesses) – Flag these for professional help.
#6. Call in a Pro—But Only as Needed
- Estate Attorney—Good for legal questions, probate, or if the will is contested. Book a consultation (not full retainer) first; get a quote and ask if you can handle some steps yourself.
- CPA—Use for inheritance/estate tax questions, especially if you inherited retirement accounts, property, or large sums. Many offer hourly consultations.
- Financial Advisor—Useful if you’re unsure how to invest or manage assets, or want a “big picture” plan. Again, start with a consult.
Ask each pro clearly: “What do I need you for, and what can I do myself?” Many offer unbundled or hourly services. You are the CEO of this process—pros work for you, not the other way around. Every hour spent learning saves many dollars down the road.
#7. Check for Deadlines
Some assets (like IRAs) have deadlines for decisions (like required withdrawals or rollovers). That’s why tax filings or disclaimers often have strict time limits—ask the CPA or attorney about any urgent “must-do” dates.
#8. Don’t Forget Debts & Bills
The estate (not you personally) usually pays any debts left by the deceased. Don’t pay from your own funds unless advised by a pro. It’s wise to get a second opinion (always) before signing anything or paying big fees.
#9. Make No Major Moves For 6–12 Months (If You Can)
Avoid big spending, investments, or gifts until you get comfortable with your new financial position. Take time to consider your future goals—maybe, this is your chance to build something lasting.
#10. Review Your Own Estate Plan, Twice
Update your will, beneficiaries, and insurance to reflect your new situation—this keeps the cycle smooth for the next generation.
Take your time building your team. Start with one—maybe a financial advisor or estate attorney—and let them help you find the rest. With a good crew, you can turn a stressful inheritance into a structured, empowering experience.
On the other hand, if you want to cut angles, start by handling the basic paperwork and info-gathering yourself. Only bring in a lawyer/CPA for the trickiest pieces—think of them as “special forces” rather than full-time crew. And always ask for a clear breakdown of what you’re paying for before agreeing to anything.
