Estate planning attorneys report a large increase in the number of families accelerating estate plans as the “great wealth transfer” is back in the spotlight following debate in Washington over the effects of the federal estate tax exemptions. A recent USA Today article, “Financial Planning After Inheritance: What’s The Smartest Thing To Do With It,” says that beneficiaries are receiving assets at a record rate in a more volatile investment climate, making estate planning critical.
Are heirs ready to protect what they receive? Most aren’t. Here are some good points to consider when asking yourself this question, “What should I do with my inheritance?”
Inheritance rarely arrives in a calm situation. Financial decisions made in the early weeks after a loss may have long-lasting consequences. Grief affects judgment, and mourners are rarely clear-headed enough to make important financial decisions.
Sudden wealth attracts both advice and scammers, from well-meaning relatives, opportunistic strangers and everyone in between. Acting on bad advice can unravel a windfall fast. There are also “structural” traps: tax obligations they don’t know about. Assets require legal attention before a dollar is moved if there is no estate plan.
Few heirs are taught about inheritance unless the family has worked with an estate planning attorney and held family discussions about what will happen when the parents or grandparents pass. This is especially true for inherited IRAs and other tax-deferred accounts. If the money is gone by the time the tax bill comes due, an inheritance can become a life-altering financial burden.
Heirs who have not dealt with significant sums of money often fail to heed professional advice. The risk of making big decisions without all the necessary information can be mitigated by a structured estate plan that sets guardrails for heirs.
Because receiving an inheritance changes most people’s financial picture, this is the time to review all personal legal documents. Updating wills, beneficiary designations and account titling, possibly in conjunction with creating a trust, should all follow any meaningful change in net worth.
Working with an estate planning attorney protects assets in accordance with the decedent’s wishes and prevents the delays and costs of probate. Click to schedule free phone consultation.
Those inheriting wealth benefit from having a team of professionals: an estate planning attorney, a financial planner, a tax advisor and, for those considering philanthropy, a philanthropic advisor. Each brings their own knowledge to the table and can ensure that there are no gaps in protecting the family and the inheritance.
Reference: USA Today (March 12, 2026) “Financial Planning After Inheritance: What’s The Smartest Thing To Do With It”
