Inheritance of $250,000+

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MarkiePippo

Dryer sheet wannabe
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Marietta
Longtime Lurker. First Time Poster.

About me.
58 Years old widower, laid off a few years ago. Semi-retired have not started to take Pension yet. Basically living on savings and short term contract work. House is paid for no debts. 401k and IRAs total over a mil. Savings of $500k. Two daughters college accounts of $150k a piece might not be enough, might have to supplement a bit depending on a schools.

My actually rich Uncle passed. I was expecting to get something eventually maybe enough for a new car someday. But it seems I am getting something more than that. His net worth was something north of $10 mil maybe as high as $20 mill. So $250,000 is the bare minimum of what I will get. So I ponder other than a few cars since mine are 15 and 20 years old (nothing extravagant) what would you all do?
 
Keep that information to myself and invest it in low-cost index funds, withdraw 4% per year.
 
Works for me. Buy that car you want and invest the rest.
 
How do you arrive at a bare minimum of $250,000 if your uncle’s estate is estimated at 10 to 20 million. $250,000 equals 1/40th of 10 million. Do you have any idea what percentage of his estate you will inherit? Estate/inheritances will of course reduce the gross estate.
 
First, I would wait and see and not get my hopes up until probate and all that was finished. Larger estates take longer to get resolved.

Second, I would keep my mouth totally shut. Not even discuss w/family (never know who is angling for your piece). Don't tell your kids - it might not pan out and they don't need to blab at school.

If and when it becomes a reality, I'd probably do a minor splurge, then wait till both kids are safely in college since you have an unknown expense there, and then consider dropping the part time work since you'll probably be 60 by the time all that comes to pass.
 
Keep my mouth shut. And after receipt: invest in very low cost broad based index funds (probably total stock/ total bond through vanguard) 75/25 stocks/ bonds.
 
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Once the estate is settled and money transferred I'd buy a new car and invest the rest in index funds. Oh and enjoy life!!
 
I'd do what I did this year. Put part in an inherited IRA, and part in a new brokerage account. Haven't spent a dime yet...keeping my eyes on the RE prize!

Sounds like you could use most of this as a buffer to enhance your retirment savings...might allow you to retire altogether!
 
I agree with all that say tell NOBODY. Google broke lottery winners and see what can happen. Some are bankrupt, some have been murdered, etc,
BUT by coming here you are ahead of the game.
Nobody in our +55 park has a clue as to how much we have, until the 2 new cars appeared in the driveway. I just casually mentioned car payments, but did not say we were making them.
 
Agree, tell no one that you are hoping for an inheritance let alone anyone if you receive a portion of the Uncle's estate. Unless some of what you receive was in Uncle's IRA then this will not be an inherited IRA (with special withdrawal requirements).

$250,000 is a nice sum but you will be surprised how fast it can be spent.

If you have income in the year of the inheritance receipt fund your personal IRA to the max.

Agree, put it in low-cost index funds. Buy a car but consider whether or not you want your kids to use your older cars during college. Keep a modest profile, don't change your lifestyle least you become a victim of a gold-digger or thief.
 
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Brat said:
Agree, tell no one that you are hoping for an inheritance let alone anyone if you receive a portion of the Uncle's estate. Unless some of what you receive was in Uncle's IRA then this will not be an inherited IRA (with special withdrawal requirements).

$250,000 is a nice sum but you will be surprised how fast it can be spent.

If you have income in the year of the inheritance receipt fund your personal IRA to the max.

Agree, put it in low-cost index funds. Buy a car but consider whether or not you want your kids to use your older cars during college. Keep a modest profile, don't change your lifestyle least you become a victim of a gold-digger or thief.
Click to expand...

There is no amount of money that people can't blow through. Conversely, a well handled inheritance can add to/ insure security and add to enjoyment throughout your retirement.
 
I try not to give advice, but if the amount is anywhere near what you mentioned, I think I'd retain a elderlaw/financial advisor type of professional, to guide the way through taxes and investment. At the least, a few thousand dollars in fees would be worth the peace of mind.
Whatever, a wonderful gift...:flowers:
 
If you have long lost friends and or family come out of the woodwork and reappear in your life you need to use extreme caution in these situations.
 
MarieIG said:
There is no amount of money that people can't blow through. Conversely, a well handled inheritance can add to/ insure security and add to enjoyment throughout your retirement.
Click to expand...


My cousin, who I believe was put on earth to be a bad example, blew through 2 inheritances and proceeds from her mother's house.:facepalm:
 
Souschef said:
My cousin, who I believe was put on earth to be a bad example, blew through 2 inheritances and proceeds from her mother's house.:facepalm:
Click to expand...
My first college room mate won a lawsuit over a dog attack. He bought a brand new Camaro, and some other toys. $ were gone his freshman year! LOL.
 
Check to see if your state has an inheritance tax. Pay that before you do anything else. Then buy your car and invest the rest.
 
HNL Bill said:
I'd do what I did this year. Put part in an inherited IRA, and part in a new brokerage account. Haven't spent a dime yet...keeping my eyes on the RE prize!

Sounds like you could use most of this as a buffer to enhance your retirment savings...might allow you to retire altogether!
Click to expand...
You can not "put" money in an inherited IRA. You either inherit the IRA or you inherit some other type of fund. You can never put money in an inherited IRA. You can put money you have inherited in an IRA if you are eligible to fund an IRA but that does not make it an inherited IRA.
 
Souschef said:
AFIK, the estate pays the inheritance tax, not the heirs.
Click to expand...

Mostly, but Estate/ inheritance tax varies by State, i.e. check out Pennsylvania.
 
MarieIG said:
Mostly, but Estate/ inheritance tax varies by State, i.e. check out Pennsylvania.
Click to expand...



Inheritance tax is paid by the estate. I executed my father’s will in PA. It’s based on where the person passed. Definitely put in index funds. Keep some cash aside in case the markets tank, as many have discussed here, and also for kids’ college. What if one goes to medical school?

Don’t change lifestyles. You will be much happier if you continue living the lifestyle to which you are accustomed. You might be able to make modest changes (flying first/business class when you do travel, for example).

If you replace the cars, be frugal and get the same that you would have anyway. Wait until you see the inheritance. $250K pads the retirement a little. $2M pads it even more.
 
Save 90%+ and splurge the rest on the car or travel.
 
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