Understanding the dos and don’ts when you get an inheritance is essential for anyone who suddenly receives a financial windfall. Whether the amount is modest or substantial, making thoughtful decisions early on can have a long-lasting impact on your financial wellbeing. In moments of grief or emotional stress, people often act quickly with inherited money—but slowing down and creating a plan usually leads to better outcomes.
When my husband unexpectedly inherited £20,000 from his grandmother, his immediate instinct was to spend it on a boat. To him, the money felt like a gift meant for enjoyment—something unexpected, unearned, and therefore “fun.” I felt differently. I saw the inheritance as an opportunity: paying down debt, strengthening our savings, or investing in our daughter’s future. That difference in mindset sparked a long discussion about how we view inherited wealth, and eventually, he decided to go ahead with the purchase. Looking back years later, the memories created with that boat turned out to be priceless to our family, but the decision could easily have gone another direction.
Many people today will face similar choices. With the largest intergenerational wealth shift happening between now and 2045, millions of families will experience inheritances—sometimes unexpectedly. Whether the inheritance is big or small, approaching it thoughtfully can preserve the value of what was left behind.
Key Dos and Don’ts When You Get an Inheritance
Don’t rush into spending
Receiving an inheritance is often tied to loss, which means emotions may run high. Before making any big decisions, pause. Celebrate the memory of the person who gifted you this blessing, then place the funds somewhere safe—such as a high-yield savings account—until you’ve had time to think clearly. For many people, a 60–90 day “cooling period” helps prevent impulsive choices.
Do assess your full financial picture
Before using any of the inheritance, evaluate where you currently stand:
Do you have high-interest debt?
Is your emergency fund lacking?
Are there essential expenses you’ve been delaying?
Using an inheritance to strengthen your financial foundation can create long-term security and reduce future stress.
Do revisit your medium- and long-term goals
Depending on the size of the inheritance, this could be your chance to reshape your future:
Contribute to a child’s education
Boost your retirement savings
Save for a home deposit
Pay off personal loans
Thoughtful planning now can create financial stability for years to come.
Do speak with professionals
Financial advisors and tax specialists can offer valuable guidance, especially if the inheritance includes property, investments, or potential tax implications. Even financially confident individuals benefit from expert advice and a second perspective.
Do consider using a portion to honour your loved one
Whether it’s funding a meaningful experience, purchasing a keepsake, or supporting a cause they valued, dedicating part of the inheritance to their memory can bring emotional comfort and purpose.
When Memories Matter Most
For us, the boat bought with my husband’s inheritance became more than just a purchase—it became a tradition. Summers on the lake brought our family closer together and created years of memories we now cherish. The decision wasn’t one we all agreed on at first, but in the end, it brought joy, connection, and a lasting tribute to his grandmother.
Managing an inheritance well isn’t about strict rules—it’s about balance, intention, and honouring both your future and the person who left the gift behind.
