By Anne McCabe & Atricia Roberts
Inheriting money can open up possibilities you hadn’t planned for, while also leaving you with some big decisions to make. Should you invest? Pay off debt? Set some aside for your children? And before you do any of that, are there tax rules or other considerations you need to know about?
You don’t have to answer all those questions right away. Before deciding what to do with an inheritance, it helps to understand exactly what you received, which decisions need your attention now, and which ones can wait. Here’s where we suggest starting.
Give Yourself 90 Days
Receiving an inheritance often sparks an urge to do something with it right away. You may want to pay off the mortgage, invest the money, help your children, or make a large purchase so the money no longer feels unresolved..
We generally suggest waiting about 90 days before making significant financial moves. Grief can affect judgment, and the choices that appeal to you in the first few weeks may look different several months later. In the meantime, the money can remain somewhere liquid and accessible while you begin sorting through your options.
There's nothing official about 90 days. We’ve simply found that it gives people some breathing room before making decisions that may be difficult to reverse.
We explored this topic further on our podcast in the episode “What We Tell Clients Before They Touch Inherited Money.” It became one of our most-watched conversations, which reinforced something we see often in our work: many people inherit money without feeling prepared for the decisions that come with it.
Understanding What You Inherited
Before deciding what to do with the money, make an inventory of exactly what you received. Saying, “I inherited $400,000,” only tells part of the story because the type of asset can affect your options, taxes, and deadlines.
List each account or asset, where it’s held, its approximate value as of the date of death, and whether you’re the sole beneficiary. Include any paperwork or deadlines associated with it.
A taxable investment account works differently from an inherited traditional retirement account or Roth account. Real estate, life insurance proceeds, and ownership in a business come with their own considerations as well. If you’re having trouble locating accounts or gathering information, an executor or estate attorney can help you work through the process.
Pay Attention to the Tax Rules
Inherited assets can come with tax rules that aren't always intuitive, so it's important to understand what applies to you before selling investments or taking distributions.
Many inherited assets receive an adjusted cost basis based on their value at the date of death, sometimes called a step-up in basis. That adjustment can affect the capital gains tax you may owe if you eventually sell.
Inherited retirement accounts have another set of rules, and your options depend partly on your relationship to the person who died. A surviving spouse generally has choices that aren’t available to other beneficiaries, and distribution requirements have changed in recent years.
We don’t provide tax advice, which is why we encourage clients to involve their tax professional before making these decisions.
Keep Inherited Assets Separate
If you're married or may remarry in the future, think carefully before combining inherited money with jointly owned assets. Depending on state law and your circumstances, inherited assets may be treated as separate property. Depositing the money into a joint account or using it for jointly owned property can potentially change how those assets are treated later.
Because these laws vary by state, an estate or family law attorney can advise you on your situation. While you’re deciding what to do, keeping inherited assets in an account in your name can preserve options you may want later don’t provide tax advice, which is why we encourage clients to involve their tax professional before making these decisions.
Be Prepared for Family Dynamics
Money can bring long-standing family feelings to the surface, particularly when everyone is already grieving. One sibling may receive more than another, someone who provided years of care may feel overlooked, or relatives may disagree about what should happen next.
If someone asks you for money while you’re still processing everything, “I’m not making any financial decisions yet” is a complete answer. You may eventually decide to share some of the inheritance, but giving yourself time allows you to make that decision after you understand your own finances.
Some people also feel guilty about inherited wealth. Spending it can feel uncomfortable because they didn’t earn it, while enjoying the money may feel complicated because of where it came from. Those feelings can influence financial decisions, so we believe they deserve a place in the conversation.
If you believe there’s a legitimate concern about the estate or how it’s being administered, bring that question to an estate attorney rather than trying to resolve it within the family.
Be Selective About Who You Tell
You aren’t obligated to tell people how much you inherited. Once others know the details, they may begin forming their own expectations about what the money means for you or for them.
We generally suggest keeping the circle small at first. Include the people who need to know, such as a spouse or partner and the professionals advising you, then decide later whether you want to share more.
What to Do Next When You Inherit Money
If you've recently inherited money and aren’t sure where to begin, we can help you understand what you received and consider how it fits into your financial life. You don’t need to have all the answers before starting that process.
At Curo Private Wealth, we regularly work with women navigating inheritance and other major life transitions, helping them sort through the financial decisions at a pace that feels manageable. Schedule a time to talk with us, or listen to the full podcast conversation on what to do before you touch inherited money.We generally suggest keeping the circle small at first. Include the people who need to know, such as a spouse or partner and the professionals advising you, then decide later whether you want to share more.
Frequently Asked Questions
How long should I wait before making decisions about inherited money?
We generally suggest waiting about 90 days before making significant financial decisions. There’s no official rule, and time-sensitive estate matters still need attention, but giving yourself some space can help you make longer-term decisions with greater clarity.
Do I have to pay taxes on money I inherit?
It depends on what you inherited and where you live. Certain assets can create tax consequences when you sell them or take distributions, and some states have inheritance or estate taxes. Because Curo does not provide tax advice, we recommend speaking with a tax professional before selling inherited assets or taking distributions.
Is inheriting a retirement account different from inheriting a brokerage account?
Yes. Inherited retirement accounts have distribution requirements that brokerage accounts generally do not, and the rules can also vary depending on whether you inherited the account from a spouse or someone else. Before taking money out, make sure you understand which rules apply to your account.
About Atricia
Atricia Roberts is Chief Operating Officer and Partner at Curo, where she serves as lead advisor for Rockville clients and helps guide the firm’s growth and operations. With more than 15 years in financial services, Atricia is passionate about delivering human-centered financial planning and expanding access to comprehensive education for underserved communities. As a black female financial advisor and a member of the Association of African American Financial Advisors (Quad-A), she is dedicated to increasing the presence and success of Black professionals in the industry. A CFP® professional, she focuses on helping clients align their finances with their life goals. To learn more about Atricia, connect with her on LinkedIn.
About Anne
Anne McCabe is Chief Executive Officer and Partner of Curo Private Wealth, where she sets the firm’s vision and leads its advisory practice. With more than two decades in the industry, Anne’s career began on Wall Street before evolving into a mission to build a firm rooted in purpose, integrity, and values-driven advice. A CFP® professional, she is widely recognized for her leadership, mentorship, and commitment to lifelong learning. To learn more about Anne, connect with her on LinkedIn.