As Thanksgiving approaches, many of us take this time to reflect on what we’re thankful for. For some, this season of gratitude may come with an added blessing—an inheritance from a loved one. But how do you make the most of such a meaningful gift? Receiving an inheritance often comes with it a mix of gratitude, responsibility, and uncertainty. It can be a generous gift left behind by a loved one, a reminder of family values, or part of a larger legacy meant to support future generations.

Here are some thoughtful steps and options you might consider for managing the gift of an inheritance.

1. Pause and Assess

Take the time to fully understand what you’ve inherited before making any decisions. Just like the Thanksgiving table offers a variety of dishes, an inheritance can include many types of assets – cash, real estate, investments, retirement accounts, or personal belongings. Each may carry its own tax considerations, so it may be wise to discuss your plan with a trusted financial professional.

For example, if you are the recipient of an IRA or 401(k), according to the SECURE Act, you may be required to withdraw the full amount within 10 years, which could increase your tax liability.¹ On the other hand, you may be able to take advantage of a step-up in cost basis if you inherited stocks, bonds or real estate and potentially minimize capital gains taxes depending on when and if you sell.²

A financial professional can help you navigate complex rules and strategies so you can make choices that align with your long-term goals—and ultimately honor the legacy your loved one intended to leave.

2. Pay Down High-Interest Debt

One of the most common and practical uses of inherited money is paying off high-interest debt, such as credit card balances or personal loans. Using part of your inheritance to reduce your financial obligations is like clearing the table for a fresh start: it can create room in your budget for new investment or savings opportunities and may provide a clearer path toward financial stability. Reducing debt can not only improve your financial health but can also help lower your monthly expenses, allowing you greater flexibility to invest in future goals—whether that’s helping fund your grandchild’s education or finally taking that dream trip.

3. Create or Update Your Own Estate Plan

Thanksgiving is about sharing what we have with those we care about, and it’s a good time to think about how you might share your wealth with your loved ones. When you receive an inheritance, it provides an opportunity to consider your own legacy and to create or update your estate plan. A thoughtful will or trust may help ensure your assets are passed on according to your wishes and may minimize potential tax burdens for your heirs. You may also wish to include charitable giving in your estate plan—allowing you to leave a lasting impact while potentially reducing your taxable estate. You should seek financial guidance to help ensure your charitable goals are met.

Ready to Make the Most of Your Inheritance? Let’s Plan Together.

Receiving an inheritance is an opportunity to give thanks for the financial independence it may provide while also being mindful of how it can be used to create a better future for you and your loved ones. With a thoughtful, professional approach to your finances, you may be able to turn the blessing of an inheritance into a tool for long-term financial well-being, not just for you, but for your family as well. What better way to embody the spirit of gratitude than by using your inheritance to strengthen your family’s future?

Whether you’re looking to invest wisely, reduce debt, or create a legacy for future generations, we’re here to help you make thoughtful, informed decisions. Schedule a complimentary review with one of our trusted financial advisors today—and take the next step toward honoring your inheritance with purpose, gratitude and a solid plan.