September 07, 2023

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A Quick Guide to Inheriting Wealth

– by Curtis H. Parry Jr. CFP®, CHFC®, CLU®, RICP®, WMCP®, CASL®
Founder & CEO

Inheriting wealth can be both a blessing and a challenge. On one hand, it opens up opportunities for financial security and personal growth. On the other hand, it comes with significant responsibilities and potential pitfalls. To make the most of an inheritance, it’s essential to approach it thoughtfully and prudently. Here’s a quick guide on inheriting wealth:

1. Take Time to Grieve and Reflect

First and foremost, it’s crucial to recognize that the process of inheriting wealth often follows the loss of a loved one. Allow yourself the time and space to grieve and reflect on your emotions. Money cannot replace a person, and it’s essential to acknowledge your feelings before making any significant decisions.

2. Assess Your Financial Situation

Before diving into any financial planning, evaluate your current financial situation. Consider your existing assets, liabilities, income, and expenses. Knowing your financial baseline will help you make informed decisions about how to manage your inheritance.

3. Develop a Financial Plan

A well-structured financial plan is essential when dealing with an inheritance. It can help you set clear financial goals and chart a course for your future. If you’re not well-versed in financial planning, consider seeking the assistance of a financial advisor or planner who can help you create a personalized plan tailored to your needs and objectives.

4. Understand the Nature of Your Inheritance

It’s crucial to have a comprehensive understanding of the nature of your inheritance. Is it a lump sum of cash, real estate, stocks, or a combination of assets? Knowing what you’ve inherited will help you determine the best way to manage and protect it.

5. Assess and Address Tax Implications

Inheritance can come with tax implications, depending on your jurisdiction and the size of your inheritance. Consult with a tax professional to understand any potential tax obligations and develop a strategy for minimizing your tax burden legally.

6. Diversify Your Investments

One of the most common mistakes made by individuals inheriting wealth is putting all their assets into a single investment. Diversifying your investments across various asset classes, such as stocks, bonds, real estate, and alternative investments, can help spread risk and provide a more stable financial future.

7. Educate Yourself

Financial literacy is a valuable skill. Take the time to educate yourself about various investment options, financial markets, and personal finance strategies. The more you know, the better equipped you’ll be to make informed decisions about your wealth.

8. Set Clear Financial Goals

Define your financial goals, both short-term and long-term. Do you want to pay off debt, buy a home, save for your children’s education, or retire early? Setting clear goals will give your financial plan direction and purpose.

9. Budget Wisely

Create a budget that aligns with your financial goals. A budget can help you track your spending, save more effectively, and avoid overspending, ensuring your inherited wealth lasts for generations to come.

10. Consider Your Legacy

Think about what legacy you want to leave behind. Inherited wealth provides an opportunity to make a positive impact on your community or support causes you are passionate about. Consider philanthropic endeavors and estate planning to leave a lasting legacy.

11. Be Wary of Lifestyle Inflation

It’s natural to want to improve your quality of life with an inheritance, but be cautious about succumbing to lifestyle inflation. Avoid extravagant purchases that can quickly deplete your wealth. Instead, focus on sustainable financial decisions that align with your goals.

12. Build an Emergency Fund

Even with a significant inheritance, having an emergency fund is essential. Life is unpredictable, and unexpected expenses can arise. Aim to set aside three to six months’ worth of living expenses in a liquid, easily accessible account to provide financial security.

13. Seek Professional Advice

Inheriting wealth often involves complex financial and legal considerations. Don’t hesitate to seek advice from professionals, including financial advisors, estate planners, and attorneys. Their expertise can help you navigate the complexities of managing your inheritance effectively.

14. Communicate with Family

Open and honest communication with family members is crucial when dealing with inherited wealth. Discuss your plans, goals, and values with loved ones to ensure everyone is on the same page and prevent potential conflicts down the road.

15. Avoid Impulsive Decisions

In the excitement of inheriting wealth, it’s easy to make impulsive decisions. Take your time to carefully consider each financial move, seeking advice when necessary. Patience is often a wise strategy when managing an inheritance.

Inheriting wealth is a significant life event that requires careful consideration, planning, and responsibility. By taking the time to grieve, assess your financial situation, and create a well-thought-out financial plan, you can make the most of your inheritance and secure a prosperous future. Remember to stay informed, diversify your investments, and seek professional advice when needed. With the right approach, inheriting wealth can pave the way for financial security and lasting legacy.

At Unique Wealth, we have extensive experience in wealth inheritance and working side-by-side with you to help guide you through this unique situation that touches a variety of different emotions. We can be your confidant and partner, as we help to provide clarity and peace-of-mind through expert advice.

If you have inheritance questions or needs, let’s connect. Contact us, today.


What makes Curtis Unique is although most clients know him in a suit, you would never see him like that in his natural habitat. You can find him most often very casually dressed, most likely not wearing shoes, in the water, exploring, and enjoying Florida. He loves to travel with his wife, Trish, and their 3 kids Jude, Presley, and Ash. His “no shoes required” lifestyle exceptions are church, golf and exercise….and if he could do those barefoot, he would. He lived in Hawaii for 5 years, so you may catch him giving his signature “shaka”.

Mobile: 813-508-1668

Curtis H. Parry Jr. CFP®, CHFC®, CLU®, RICP®, WMCP®, CASL®
Founder & CEO