Coming into an inheritance can represent a time of mixed emotions – including, of course, bewilderment at what to do with a potentially large sum of money that is now finding its way into your accounts.
Here are 8 ways of making sure you get the very most out of this inheritance.
Firstly, Make Sure You Get it
Most people don’t expect to need to contest a will after a loved one dies, but it’s much more common than you’d think. Whether their will seemed incomplete or inconsistent with their wishes or relationships due to a lack of testamentary capacity, or you feel that the testator was manipulated into an outcome they wouldn’t have wished for, there are a number of reasons why a will might need to be contested.
In these instances, the worst thing you can do is to do nothing. Don’t spend the rest of your life wondering – enlist the help of will dispute solicitors to reclaim your inheritance.
Next, Hire a Financial Advisor…
Nobody is ever prepared to take on a significant inheritance. It can be daunting – particularly at a time when emotions are sure to be running high.
One of the best ways to start off on the right foot is to take on a financial advisor, who can give some structure to your finances and ensure that nothing gets overlooked or squandered.
…And Ask for Their Help with Investing
Investing money is a great way of maximising an inheritance, particularly when it is done according to the expert guidance of a financial advisor. It’s all very well and good taking any opportunity to invest that comes your way, but nobody knows how to be an investor straight off the bat.
Invest wisely, and you will reap the rewards over many, many years to come.
Get Out of Debt
Spending your newfound inheritance on old debts doesn’t seem like an exciting prospect, but there’s no use racking up more and more interest overtime when you have potentially significant funds sitting in your spending account.
If you keep your debt, you will only end up spending more of your inheritance over time, so do the wise thing and get rid of those red numbers now.
Create a Rainy Day Fund
Again, this probably won’t be the first thing that comes to mind when you inherit money, but one of the wisest things any adult can do is to create a robust savings account – and, of course, to save it for worst case scenarios.
Create a savings account with a good rate of interest, so that your money isn’t sitting idle.
Invest in Property
Putting a roof over your family’s heads is not only important right now, but it can easily pay dividends in the future. Property increases in value much more reliably than a lot of other investments, and having only a small mortgage (or no mortgage at all) will make it much easier for you to grow your savings.
Create a Will
Any adult should add creating a will to the top of their to do list, particularly as their assets continue to grow. Money, property and other investments all need to be accounted for sooner rather than later – or, in the event something happens, your loved ones could miss out.
Start a Business
If you’ve been harbouring a dream of running your own business, then investing an inheritance into your professional life is a great way of getting proactive, and building a steady stream of income over time – just make sure you find (and use) the best advice possible, and bolster your rainy day fund in the meantime.