Inheriting a large sum of money can be a blessing, but it can also be a burden. After all, most of us are not used to having large sums of money given to us without having a specific objective. We may not know how to manage it, or we may be afraid of making the wrong decisions. As a result, we may feel overwhelmed and stressed.
Here are some of the burdens of inheritance:
- Emotional burden: Inheriting money can be a reminder of the death of a loved one. Some find it difficult to separate the positive emotion of receiving money with the grief of losing someone close to you.
- Financial burden: Managing a large sum of money can be a challenge. We may not know how to invest it, or we may be afraid of losing it. This can lead to financial stress.
- Relationship burden: Inheriting money can strain relationships. Family members may feel entitled to a share of the inheritance, or they may be jealous of the person who inherited the money. This can lead to conflict and resentment.
Large windfalls should not be a hassle, they should be liberating; however, some people feel weighed down as they do not know what to do.
By seeking financial advice, a financial adviser can help you to manage your money objectively and avoid making costly mistakes. You could also consider undertaking grief counselling to help prepare you for the emotional and relationship challenges that may come with inheritance.
Other tips when inheriting money can include:
- Take your time: Do not make any major decisions about your inheritance right away. Take some time to grieve the loss of your loved one and to get used to the idea of having a large sum of money.
- Give back: Consider using some of your inheritance to give back to your community. This could involve donating to charity, starting a foundation, or volunteering your time if you are able to stop working due to the windfall.
If you would like to understand what your financial options are with an inheritance you have received, please get in touch with a trusted adviser at Wingate Financial Planning.
