Tips on Managing an Inheritance

A recent study estimated that two-thirds of baby-boomerhouseholds will receive an inheritance over their lifetimes, with the medianbeing $64,000.  If you are fortunateenough to receive an inheritance, here are eight tips to help prudently manageit:

1. Set financial goals to provide direction for thetype of investments that should be made.
2. Review your estate planning to see if thenewfound sum of money warrants the creation of a trust to provide for yourfamily.
3. Review your insurance planning to see ifincreases on your policy’s liability limits are in order.
4. Consider paying off any debts.
5. Establish an emergency reserve.
6. Rethink commingling inheritances in a joint account,as this will lose its protection as separate property.
7. Consult with financial professionals.
8. Set aside a small amount to treat yourself.

See Marc Hebert, Money Matters: Tips for Managing anInheritance, WMUR.com, July 11, 2013.