Coming into a big inheritance probably feels surreal. One day you’re anxiously checking your balance like usual, and the next day you’re looking at more zeroes than you’ve ever seen before.
It’s a life-changing moment. But it can also be a costly financial headache if you’re not careful.
Rich families don’t wing it when money like this changes hands; they follow a playbook. And if you’ve just inherited a fortune, it’s worth stealing a few pages.
1. Hit pause — then build a game plan
The rich don’t panic and wire the money to Robinhood. They slow down and get advice. Because once you move money around, it gets harder (and more expensive) to undo mistakes.
Wealth advisors often recommend:
- Leaving the money in a separate account temporarily.
- Not mixing inherited funds with joint accounts.
- Holding off on big purchases for at least six to 12 months.
2. Stay under the FDIC limit
If you inherit cash — like a $500,000 check from a trust — you can’t just drop it all in your local bank account. Well, you can, but it’s not a smart move.
The FDIC only insures $250,000 per depositor, per bank, per ownership category. Anything above that could be at risk if the bank fails.
Wealthy families use strategies like:
- Spreading funds across multiple institutions.
- Using cash management accounts or brokered CDs.
- Opening trusts or separate legal entities for coverage.
Smart move: Talk to a fiduciary financial advisor before touching anything. Our partner SmartAsset’s no-cost quiz makes it easier to find a fiduciary financial advisor.
3. Consider the tax fallout
Inheritance itself usually isn’t taxed. But what you do with it can trigger taxes fast.
- Sell inherited property? You might owe capital gains.
- Transfer money to relatives? That could trigger gift taxes.
- Invest in taxable accounts? You might face IRS surprises.
That’s why smart families bring in an estate planner early. One wrong move can turn a tax-free gift into a costly year.
4. Don’t go it alone
Here’s what high-net-worth families don’t do: rely on Reddit or guess their way through it.
They build a fiduciary team that always works in their best interest and map out how to protect, grow, and eventually pass down their money.
And you can do the same. Our partner SmartAsset’s secure quiz matches you with up to three fiduciary financial advisors who have passed a rigorous vetting process.
What you do next matters more than you think
Inheriting a large sum of money can change your life. But it can also change your tax situation, your relationships, and your long-term financial goals. That’s why wealthy families don’t go it alone.
They treat an inheritance like the serious financial event it is. They build a team. They protect the money. They think about legacy, not just lifestyle.
You don’t need to be ultra-wealthy to do the same.
