How to Invest an Inheritance

Those who were prudent with money during their life often have a substantial amount of money to pass along when they pass on. You may find yourself in the position of receiving an inheritance. However, it may be unclear what you should do with the money.

	If you were close to the person who bequeathed you the money or property, make sure you give yourself plenty of time to mourn. Money decisions made during stress are often bad, so give it time. If you receive money, take it down to the local bank and put it in a savings account or CD for a few months until the regular pain of grief has subsided. (If you have more the FDIC insurance limit and that makes you nervous, open accounts at multiple banks, since you have a new FDIC insurance policy at each new bank up to the full limit.)
	Once you can think clearly again, take a look at your financial situation. A good place to start would be to clean up any mess that you have, such as consumer debt. Just make sure that you commit to never going into debt again.
	If you inherited jointly owned property, such as houses or cars, be very cautious. You do not want the passing of a loved one to cause fighting within your family. If no one is personally attached to the property, it is probably best to sell the property and divide the proceeds. If someone is attached to the property, try to get that person to buy out the other owners for a fair price.
	If you are in a good financial situation and the inheritance represents truly excess money, consider doing something in remembrance of the one who passed away. For example, if both your loved one and you always dreamed of opening, say, a book store, and the money is enough to do so, then that might be an appropriate use of the money.

• What to do with an inheritance is a sensitive issue. Don't let relationships be destroyed.