How To Manage a Large Inheritance

The passing on of near and dear ones and sometimes (at least in Hollywood movies) the passing of unknown or little known distant relatives can bring upon a person an expected or unexpected windfall of fortune. An inheritance occurs when you receive money, property or a title as an heir at the death of the previous holder - this could be a complete stranger to you, could be a relative, friend or well-wisher. There are several ways to handle such situations. Some interesting ones would be as follows.

  1. Firstly, know your rights on the inheritance, any conditions attached to its acceptance and ask yourself if you can fulfill those conditions.
  2. Often times, the objects of an inheritance will be a result of someone else's hard-work, grit, determination and various efforts done by them to acquire, sustain and safeguard such fortune. Treat it with respect. You must know that the inheritance has come to you since the person bequeathing them to you believes that they rightfully belong to you or that you could take good care of it when they are gone. So, sustaining and growing the inheritance is the key to the trust imposed in the inheritor.
  3. With that in mind, take steps to understand the legalities of the inheritance, such as - if it is an immovable property, how do you perfect your title over it? In some countries, there is a tax to be paid to the government - known as inheritance tax, estate duty or death tax. Understand your liabilities to the government under applicable law and take steps to fulfill them.
  4. It may be advisable to appoint a financial planner, a lawyer who specializes in estates, inheritance and related tax planning. Together, they can assess your potential and advice you on the right steps to be taken for managing your inheritance.
  5. Do not get greedy and selfish; try to share your inheritance with your immediate family members. They could deserve an improvement in life just as well as you do.
  6. If your inheritance includes valuable artifacts, paintings and such - then make arrangements for their proper display, preferably in a secure, vantage portion of your residence or if unable to do so, make arrangements for their safe storage and maintenance.
  7. Some ancient paintings and artifacts can wither over time if not maintained in controlled temperatures, humidity and conditioned environments.
  8. Make a practical assessment of what it takes to sustain the inheritance during your lifetime and possibly to pass it on to your heirs. In doing so, it should not become a burden on you; on the contrary, it should be something that adds value to your life and keeps you happy. If it were to have a negative effect on your bank balance or on your emotional state of affairs, it is best that you arrange to dispose the inheritance and reap cash or other benefits out of it.

Remember, inheritances are meant to make your life rosier. Keep it that way.


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