Making The Most Of An Inheritance
When you have received an inheritance, you are faced with a number of choices. There are many roads you can consider, but you have to try and find the best option for your particular circumstances. There is no right or wrong way to handle an inheritance; you just have to work out what your life requires, and tailor your decisions accordingly.
Inheritance, of course, comes in many different forms, and the particular form you have received can help to guide you on your decision. Let’s delve into the four most common types of inheritance and select a few possible decisions, so you can figure out the best decision, and take the path that works out well for you.
For a monetary inheritance, your choices are:
- Spend; particularly useful if your budget is usually tight and you there are items you need.
- Save; build a savings account and a contingency fund to help protect against future circumstances.
- Save, in cash; a huge number of people have an ‘emergency stash’ of cash, which you may like to do also. Just try to keep it below $500 or it’s unlikely it will be covered by your home insurance. There’s some useful advice here on where you should hide money in your home.
For property inheritance, your choices are:
- Move into the property; use it as your primary residence, or as a vacation home.
- Sell the property; and use the funds raised as you see fit.
- Rent the property out; become a landlord and use the rent as a secondary income.
- Develop the property; if you believe the property can be developed for further profit, then investing in the development and then selling on could be the start of a lucrative second income for you.
For jewelry inheritance, your choices are:
- Keep the items for sentimental reasons; store in a fireproof safe or at a bank.
- Sell the items; for high-end items you can sell to a jeweler, less expensive items may be best sold online.
- Save for future use; keep jewelry as a kind of emergency fund, ready to be taken to a pawn shop should you need to raise money in future.
- Keep the items for your personal use; add them to your existing accessories, or gift them to other members of your family.
For stocks and shares inheritance, your choices are:
- Sell the stocks and shares you have received; a good option if you have no interest in investing in the stock market.
- Take over and maintain the stocks and shares; you will likely need the assistance of a professional broker to do this.
- Use the stocks as collateral on a loan; useful if you want to raise funds for a special purchase but do not own your home or have any other form of collateral.
All of the above are presented without bias; as mentioned in the opening paragraph, there’s no right or wrong way to handle the decision you have to make. Hopefully, the above has helped to clarify the choices you could make, and you can select what suits your circumstances the best.
