Justin Follmer Feb 27, 2026
Dealing with inheritance money is often a bittersweet event. You’re grieving, and at the same time you’re being asked—by paperwork, deadlines, and well-meaning people—to make financial decisions you may not feel ready to make.
I understand that tension personally. My father passed away suddenly in 2023 at 70. As a financial advisor, I knew the mechanics of estate administration and had coached many clients through the steps. But handling it for your own family is different. It’s disorienting. Emotional. And strangely urgent, even when your mind is still trying to catch up.
If you’ve recently inherited money, the goal right now isn’t to “optimize” everything immediately. The goal is to slow the moment down, gather the right information, and make decisions from a place of clarity.
Important note: This article is for general informational purposes only and should not be considered legal, tax, or investment advice. Estate and tax rules vary by situation, and regulations can change. Consider working with qualified professionals for guidance specific to your circumstances.
When someone comes into an inheritance, my first recommendation is usually simple: pause.
Resist the urge to immediately buy something, “fix” something, or wipe out a debt just to feel productive. That initial waiting period gives your mind time to form a healthier relationship with sudden wealth—and it creates space to make decisions from steadiness rather than emotion.
It’s also completely okay to say: “I don’t know what to do with it yet.”
That sentence can protect you from decisions you may regret later.
There are a lot of moving parts in estate administration and financial firms follow strict procedures when an account owner dies. Some accounts pass to beneficiaries directly. Others move through a trust or probate process.
Your role matters:
Assuming you are a beneficiary, it’s routine to request statements once assets are in your name. From those statements, you’ll want to confirm:
This step is about replacing uncertainty with facts.
Once you have the statements, the next step is to understand what (if anything) you may owe in taxes—this year and in future years. This is often when questions about inheritance taxes begin to surface.
Different inherited assets can be taxed very differently. For example:
This is often the point when hiring help becomes worth it. A strong pairing is:
The goal here isn’t to “game” taxes—it’s to avoid surprises and prevent accidental mistakes.
Whether you work with a professional or do this yourself, you’ll want a clear picture of your financial foundation when deciding what to do with inheritance money.
If you don’t already have these, now is the time to update:
Your income statement (budget):
Monthly income vs. monthly expenses. Where is your money coming from, and where is it going?
Your balance sheet (net worth statement):
Everything you own (assets) minus everything you owe (liabilities) equals your net worth.
Your inherited accounts now belong on that balance sheet. These two documents become the “dashboard” for your financial life—and they make the next decisions far easier by answering the question: What does my financial life look like before I change anything?
Once you understand what you inherited, the potential tax implications, and your overall financial picture, you can decide how this inheritance money fits into your life.
If you hire a CFP® professional, they should walk you through a structured planning process and help you evaluate tradeoffs. If you’re managing it yourself, a helpful mindset is:
Use the inheritance to strengthen your existing life—not to force a completely new one overnight.
Depending on the size and structure of the inheritance, that might mean:
Your options are plentiful. The key is to choose intentionally—on your timeline.
The five steps above are the same process we take clients through—and the same approach I used to help my Mom after my Dad passed. It created space for her to grieve and get organized before making major decisions, and it kept the next steps grounded in what was truly best for her.
Whether you work through this on your own or with a professional, the point is the same: slow the moment down, get clear on the facts, and make decisions when your mind is ready—especially when inheritance money enters your life during an emotional time.
If you’d like help, Coastal Wealth Advisors supports families navigating the financial complexity that can come with sudden wealth. Our CFP® Professionals design financial plans and manage investment portfolios for clients who want coordinated guidance, clear strategy, and a steady hand.
If you’ve recently inherited a large sum of money and want to talk through your options, you can schedule a no-obligation introductory call below.
Experienced Advisors Committed to Guiding Your Financial Journey with Integrity.
