The Top 5 Things You Should Do Right Away If You Inherit Money

A List of Things Clients Wish They’d Known Before the Money Arrived.

One of the things I see with clients is that receiving an inheritance — whether expected or a surprise — often comes with a mix of emotions and big financial decisions. The first few months are critical. What you do (or don’t do) early on can make a huge difference in how much of that wealth lasts.

Recent research drives this home: a 2026 study found that 42% of heirs spend their entire inheritance within just one year. Other studies show that, on average, people save only about half of what they inherit, with the rest spent or lost.

Here are the top 5 things I recommend doing right away:

1. Pause and don’t touch the money for a bit:

Give yourself time to grieve and process. The worst moves happen when emotions are running high. Park the funds in a safe, liquid account for at least 30–60 days.  I would still make sure that the account is earning some kind of interest especially because interest rates are higher than years prior.

2. Understand the tax implications:

Inherited assets have different rules depending on the type (IRA, brokerage, real estate, etc.). Get clear on what’s taxable now, required distributions, and any state taxes. Getting this wrong early can get expensive.

3. Update your own financial plan:

An inheritance changes your numbers. Revisit cash flow, retirement projections, debt strategy, and goals. This money should support your overall plan — not become a separate pot that gets spent impulsively.

4. Protect it:

Review insurance, estate documents, and beneficiaries. If it’s a significant amount, consider creditor protection or trusts. Don’t commingle it with daily spending accounts until you have a clear strategy.

5. Decide on a thoughtful allocation:

Once things settle, build a diversified approach that matches your risk tolerance, time horizon, and values. It’s usually not about going ultra-conservative or aggressive — it’s about making it work as part of your bigger picture.

An inheritance often represents someone else’s lifetime of hard work. Treating it with care and intentional planning is one of the best ways to honor that.

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About the Author

Christopher Krzus

Chris Krzus, CFP® is the founder and president of Wolfstone Wealth and a fee-only CERTIFIED FINANCIAL PLANNER® with more than two decades of experience. He began his career on the Chicago Board of Trade as a college kid, and has since specialized in comprehensive financial planning and investment management for busy and successful tech and business professionals and people in life transitions. Chris works with clients to bring clarity and confidence to their financial lives.