Managing an Inheritance
An inheritance can be a blessing, but it can also carry complicated emotional weight. The responsibility may seem overwhelming, especially if the distribution of assets was not planned in advance. And furthermore, as an heir you may be faced not only with a new and complex financial situation, but with a personal loss as well.
Allocating your loved one's estate will take time, especially if he or she did not establish end-of-life responsibilities. So what should you do in the mean time? And once you've received your inheritance, how should you handle it?
The following suggestions could help you during this time of uncertainty:
Allow Yourself Time to Grieve
Grief is a necessary process for your health. A level state of mind is important before making any financial commitments.
As an heir, you'll likely experience the range of emotions that come with loss, and you may even feel guilty, or even a sense of distaste, for your new assets. Making plans for your inheritance or asking questions regarding money may seem inappropriate so soon after experiencing a loss. There may be times when you don't feel like doing anything with your inheritance at all. Just remember that it's okay to feel upset, and allow yourself time to grieve before making any rash decisions.
Personalize Your New Assets
Identify yourself as the new owner of the assets. The emotional value of an inheritance will never fade, but making smart financial choices can be difficult if you still identify the assets with your late loved one.
During these difficult times, keep in mind that your loved one intended you to be the new owner of those designated items; after all, he or she specifically named you as an heir. Now is the time to recognize your loved one's final wishes.
Commit Yourself to the Road Ahead
Committing yourself to the responsible management of your inheritance is one of the wisest and most empowering actions you can take. The loved one responsible for naming you as an heir most likely intended your inheritance to be his or her financial parting gift. It's probable that he or she wanted you to use your new assets to better you and your family's lifestyle. You'll be acknowledging your loved one's wishes and honoring his or her memory by using your gift in the most fulfilling and financially sound ways possible.
Before Acting…Wait
Consider doing nothing with your assets for six months after you've received them. This waiting period gives you time for preparation and better focus fo manage inheritance money. It will also allow another chance for emotions to run its course.
Once you actually receive your inheritance, an entirely new range of emotions may set in. Some heirs are so relieved to see the end of the distribution process that they immediately treat themselves to a shopping spree. While such a move may satisfy short-term emotional needs, you may find a long-term strategy for your new assets to be more responsible and more rewarding.
