When a loved one passes away, the emotional weight is already immense. But if you also inherit money or property, you may find yourself dealing with a whole new set of financial challenges—ones that can be surprisingly costly if not handled carefully.
Continue reading
When unexpected money comes into your life – whether through inheritance, divorce settlement, or life insurance proceeds – it often arrives paired with complex emotions. You might be grieving a loss, closing a chapter of your life, or feeling the weight of new responsibilities. It’s completely normal to feel overwhelmed, confused, or even paralyzed about what to do next.
While you might feel pressure to make immediate decisions or have others offering plenty of suggestions about what you “should” do, one of the wisest choices you can make right now is to slow down and take a breath. Let’s talk about how to navigate this transition thoughtfully and create a foundation for sound decisions.
Think of a decision-free zone as your financial quiet space – a period where you press pause on major money decisions. Just as you wouldn’t make significant life choices in the middle of an emotional crisis, it’s wise to give yourself time to adjust to your new financial reality.
Consider Alison, a recent widow who received a substantial life insurance payment. Well-meaning friends immediately started suggesting investment opportunities and real estate purchases. Instead of jumping into action, Alison gave herself six months to grieve and adjust. She parked the money in a secure bank account and focused on taking care of herself and her children. When she did start making financial decisions, she felt clearer and more confident about her choices.
A decision-free zone doesn’t mean doing nothing. You can use this time to:
While major decisions can wait, there are some initial steps that deserve immediate attention:
Place the money in FDIC-insured bank accounts. Ideally, you want to put it in a high-yield savings account. This way the money will be earning a reasonable amount of interest but will remain liquid and accessible. For larger amounts (over $250,000), you might need to spread it across multiple banks to stay within FDIC insurance limits. This isn’t your forever solution – it’s your safe holding place while you develop a longer-term plan. Once you have more clarity about your goals, you can consider investing they money in a way that aligns with your timeline and risk tolerance.
Different types of sudden money have different tax implications. An inheritance might have different rules than a divorce settlement or insurance proceeds. Make note of any tax deadlines, but don’t feel pressured to make immediate tax-planning moves. It’s a good idea to set aside any funds you might need for tax payments in an FDIC-insured bank account. This way you know you have the funds available and your aren’t scrambling come tax time.
Some money comes with deadlines or legal obligations. For example, Jennifer received an inheritance that required her to make decisions about her mother’s IRA within a specific timeframe. She focused on understanding these time-sensitive choices while putting other decisions on hold. You want to maintain as much flexibility as possible during this time while also making sure that you meet any deadlines that exist.
You’re not obligated to tell everyone about your financial situation. Beyond necessary legal and tax professionals, be selective about who you inform. This helps reduce unwanted advice and pressure while you’re still processing your situation. Even well-meaning friends and family can give bad advice if they aren’t trained and licensed advisors.
Just as you wouldn’t try to navigate a health crisis without medical professionals, you shouldn’t feel you need to handle sudden money alone. A thoughtful support team might include:
Look for someone who listens more than they talk and asks about your goals rather than immediately pushing products. They should be comfortable explaining things clearly and repeatedly until you understand. Additionally, you want to look for a fiduciary, or someone who is required to put your interests ahead of their own. Surprisingly, this is not a requirement of all people holding themselves out as financial advisors. Look for a Certified Financial Planner (CFP) and preferably one who is fee-only, meaning they get paid by you and not by selling you investment or insurance products.
Especially important if your sudden money comes with tax implications or if your tax situation has changed significantly. A Certified Public Accountant (CPA) is someone who is qualified to provide tax advice. Tax law is complex, and this is not a time when you want to get advice from unqualified sources.
Money and emotions are deeply connected. Many people find it helpful to process their feelings with a professional who can offer objective support. While you can talk about your financial situation with any therapist, there are specialized therapists who deal specifically with financial issues. They understand how money and emotions are intertwined and can help you work through guilt, fear and any other emotions that this sudden money may be bringing up for you.
When building your team, ask potential advisors:
Before making major money decisions, take time to reflect on questions like:
Lisa, a client who received a divorce settlement, spent two months journaling about these questions. When she finally started making decisions, she had a clear vision: maintaining stability for her children, returning to school to finish her degree, and eventually starting her own business. This clarity helped her evaluate choices and say no to options that didn’t align with her goals.
Watch out for these frequent challenges:
That new house or car can wait. Give yourself time to understand how your lifestyle and needs might be changing.
Avoid committing to loans or gifts to family members, no matter how much they might press. Julie felt pressured to help her sister with a business venture but waited until she had a clear financial plan. She ultimately found other ways to be supportive without compromising her own financial security.
Everyone has opinions about money, but not all advice is good advice. Be particularly wary of:
Many women feel responsible for solving others’ financial problems once they have resources. Whether for your adult children, other family members or friends, it is not your responsibility to solve other people’s money problems. Remember that securing your own future isn’t selfish – it’s necessary.
Taking time to think, feel, and plan isn’t indecisive – it’s wise. Your sudden money journey is unique to you, and you deserve the space to navigate it thoughtfully. Whether your next step is finding a trusted advisor, starting a journal, or simply giving yourself permission to pause, remember that careful consideration now can lead to confidence and clarity later.
You don’t have to figure this all out alone, and you don’t have to figure it all out today. Take that breath. Give yourself grace. Your thoughtful decisions will be worth the wait.
Sara Zuckerman, CFP®, CDFA® is the founder of Reset Financial Planning in Fort Collins, CO. Through virtual planning sessions, she partners with women nationwide who are navigating major life transitions, particularly divorce, inheritance and widowhood. Sara’s mission is to help women create a fresh financial start that aligns with their values and empowers them to move forward with confidence.
If you are interested in learning about how Reset Financial Planning can help you take charge of your finances as an independent woman, please contact us at or schedule a free 20-minute consultation.
Sign up for Reset Financial Planning’s Monthly Newsletter to effortlessly stay on top of my blog posts and occasional extra goodies and receive my Get Your Finances Organized Checklist for free!
Disclaimer: This article is provided for educational, general information, and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for the purchase or sale of any security, or investment advisory services. We encourage you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Reset Financial Planning, LLC, and all rights are reserved.
