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An inheritance presents financial and emotional challenges

Published on: October 11th, 2019


Receiving an inheritance is much more than a financial event. It’s an emotional one as well. If you’re expecting a considerable inheritance, it’s important to plan for the transition that sudden money requires.  Taking care of the financial transition may also help you with the emotional one.


A truly mixed blessing
Emotionally, an inheritance can affect you in ways you might not expect. The fact is, it is a truly mixed blessing. You’ve suddenly gained a sum of money that could alleviate financial worries or open up opportunities for you, but you have also lost a loved one.

There can be other potentially complicated consequences of receiving an inheritance. Family relationships can be strained, and an inheritance can result in jealousy on the part of family and friends. For people who are facing the complexity of emotions that an inheritance can bring, it might be helpful to keep in mind that the person who left you the legacy did so with the intent of helping you forge a secure or more comfortable future.


Planning is a must
A financial strategy that is specifically created to address your inheritance is a must. A failure to plan for this windfall can actually put its benefits in jeopardy. Time and again, people who come to receive a substantial sum of money tend to run through it far too quickly, often without addressing the needs they had before receiving it.

By letting emotions cloud good judgment, you are more likely to make decisions that aren’t consistent with your financial needs and goals.

There’s also the unavoidable fact that substantial money may change your life and therefore involves major decisions about what you want to do with your time. You may have more opportunities now and in the future, including possibilities you’ve never considered before.

Professional advice can help. By working together, we can establish clear financial objectives and create a roadmap for reaching them. We can avoid missteps and prepare you for the challenges of safeguarding, and benefitting from, the legacy of a loved one.


Take your time
Having a formal strategy will also give you the luxury of taking a little time to become accustomed to your new situation. You’ll already know where you’re headed, and you won’t be in a hurry to figure things out. Often it’s a good instinct to wait a few months before you do anything major with a windfall. Taking a break gives you a chance to gain control over your emotions.


Everyone’s reaction to change is unique. If you’re facing the challenges of a major inheritance, let’s talk about the best way to handle it. Strategizing today can help you avoid problems tomorrow and ensure that the money you inherit will help provide financial security for you and your family.

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