Wednesday, July 17, 2013
A recent study estimated that two-thirds of baby-boomer households will receive an inheritance over their lifetimes, with the median being $64,000. If you are fortunate enough to receive an inheritance, here are eight tips to help prudently manage it:
- Set financial goals to provide direction for the type of investments that should be made.
- Review your estate planning to see if the newfound sum of money warrants the creation of a trust to provide for your family.
- Review your insurance planning to see if increases on your policy’s liability limits are in order.
- Consider paying off any debts.
- Establish an emergency reserve.
- Rethink commingling inheritances in a joint account, as this will lose its protection as separate property.
- Consult with financial professionals.
- Set aside a small amount to treat yourself.
See Marc Hebert, Money Matters: Tips for Managing an Inheritance, WMUR.com, July 11, 2013.