When a loved one passes, they leave behind more than memories. They often bequeath financial assets – a house, investments and insurance benefits – that can drastically reshape the inheritor’s financial landscape.
Recently, I worked with a client who faced this exact situation. The inheritance came unexpectedly after the passing of her father. Amid the grief, there was an overwhelming sense of responsibility. She questioned how she should use the funds. Was this the catalyst for her to transition from a career that she loathes? Should she pay off outstanding debts? Should she honor her father and contribute to the charities that he passionately supported? Should she splurge and take her dream vacation to Hawaii?
Handling money tied so closely to loss isn’t just a financial decision; it’s an emotional one, too. I find it helpful to remember that in moments like these, there’s rarely a need to act immediately. In fact, acknowledging your emotions and giving yourself time to grieve is often the most important first step.
Creating a plan can help:
• Relieve short-term stress. We used part of the funds to pay down high-interest debt. Reducing monthly financial pressure helped alleviate stress – an important step during an overwhelming time.
• Strengthen the foundation. We set aside a portion of the inheritance to bolster her long-term financial stability, including increasing her emergency savings to cover unplanned contingencies. She commented that her dad was always her safety net; by taking this approach, it felt as if he were still protecting her.
• Create a lasting legacy. Finally, and perhaps most meaningful to her father, we established a fund for her child’s education in their grandfather’s name. This decision turned what could have been a routine financial transaction into a living tribute, one that will continue to reflect her father’s love and values for generations to come.
That last step changed everything. Instead of feeling burdened by the responsibility of “doing the right thing,” my client began to feel gratitude and purpose. The inheritance became not just a sum of money but a continuation of her father’s story.
Money, after all, isn’t just numbers on a page. It’s a reflection of values, experiences and relationships. When managed with intention, it can carry a legacy forward in deeply personal and powerful ways.
For anyone navigating an inheritance, the key is to approach it thoughtfully. Resist the urge to make quick decisions. Take time to understand your emotions, your financial priorities and the legacy you want to honor. Surround yourself with trusted advisors who understand both the numbers and the human side of money.
Disclaimer: Advisory services offered through Kovitz Investment Group Partners, LLC. Visit www.Fortpittcapital.com for additional disclosures.
