What to Do When Your Family Receives an Inheritance

by Scott Miller|April 21st, 2026

Many couples come to us after receiving an inheritance, a buyout package, or a lump sum from an unexpected life event. They've worked hard their whole lives, but they've never had to manage this much money at once and they're terrified of making the wrong move. We wrote a story about a situation like this below.

A couple came to us in their late 50s last year 

The husband Mark, 52, is a partner at a major commercial real estate firm, and his wife Marie, 50, is a healthcare executive. Their combined gross income is $400,000, and they have two high school kids.

They just received $2 million after her father passed away:

  • Life insurance

  • Inherited IRA

  • Brokerage account

They were anxious, overwhelmed, battling grief and telling us:

  • "We don't want to trigger a huge tax bill."

  • "We don't want to mess this up."

  • "We just need help making the right decision."

The Problem With Windfalls

Most people who receive a large sum of money react in 1 of 2 ways:

  • Some want to spend as much as they can because they see it as "new money”.

  • Others freeze completely because they're terrified of making the wrong move.

This couple was in the second camp.

They talked to other financial advisors but every meeting felt the same: 

  • Technical jargon

  • Vague recommendations

  • No real understanding of their situation.

Nobody could show them where they actually stood or where they were going.

What They Wanted to Do (And Why We Stopped Them)

When Mark and Marie came to us, they had a plan, which we took a look at:

1. Pay off the mortgage immediately.

It was a 3% mortgage, which sounds like the responsible thing to do. 

Except they also had an 8% interest rate on their car loan.

We told them to pay off the car first. Leave the mortgage alone.

We always recommend paying off higher interest rate debt first.

2. Leave everything in cash until the markets "settle down."

This is one of the most common mistakes people make with windfalls.

They thought "I'll just wait until things calm down, then I'll invest."

But markets never feel calm and sitting in cash for months or years means watching inflation eat away at your money.

The 4-Step Process

  1. We started by organizing everything into buckets:

    1. 30% set aside for taxes — moved into a high-yield money market account

    2. Long-term investments — diversified portfolio for growth

    3. 529 accounts for both kids — they had nothing set up for college

    4. Taxable investment account — for flexibility and future goals

  2. We paid off the 8% car loan immediately.

  3. We told them: no home upgrades yet. Take a few months. Let yourself process this. Marie just lost her father. Don't make big decisions when emotions are high.

  4. We got their high school kids involved. We sat down as a family and talked about what this money could mean for them: college, their future, what kind of legacy they wanted to leave.

What Changed After 6 Months?

The couple came back for a check-in.

Here's what they told us:

  • "We're so glad our kids are set up for college now."

  • "We finally feel like we have clarity about what we're working toward."

  • "You helped us slow down and think long-term instead of just reacting."

They weren't anxious anymore because they had a plan that worked for their family. More importantly, they understood why the plan worked for their family.

What to do next?

When you receive a windfall whether it’s an inheritance, a buyout package, or the sale of a business:

  • The worst thing you can do is rush into an uninformed decision that does not align with your goals and objectives.

  • The second worst thing is to do nothing and miss out on potential opportunities.

This is where we can help answer your questions like:

  • What are we investing for?

  • What are our long-term goals? 

  • Do we have high-interest debt silently eating away at our wealth?

  • What does this money mean for our family?

You don't need fancy strategies. You need someone who can help you see the big picture when you're too close to see it yourself.

Action Steps

If you've recently come into a large sum of money and aren't sure what to do, we can help.

Step 1: Schedule a free 20-minute consultation with us

Step 2: We'll talk through your situation — no jargon, no pressure, just clarity

Step 3: You'll walk away knowing your options and what makes sense for your family

[Schedule Your Free Consultation Here]

You don't have to figure this out alone. That's what we're here for.