Coming Into New Wealth
Whether you've inherited money or had another financial windfall, there are many things to consider. Use the New Wealth Action Plan Checklist to make the most of your new wealth.
Re-evaluate your personal finances.
- Assess your current assets and liabilities to decide where your new money should go first (for example, debt reduction versus new investments).
- Make it a priority to pay off high-rate consumer debt, and reconsider other liabilities.
- If your new money is taxable, put aside the amount you will have to pay in taxes.
- Significant new wealth will likely call for an adjustment in your strategy.
- Discuss taxes, net worth, cash flow, insurance, gifting, and estate planning.
- Consider whether you still have the right level of life, health, and liability insurance.
- Federal estate taxes are generally paid by the executor of the estate. Visit the IRS website for more information.
- Check with state inheritance tax officials to see if any state inheritance taxes are due.
Consider selling assets that do not fit with your financial goals.