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**Navigating the Great Wealth Transfer: What You Need to Know About Inheriting Money**

We are in the midst of the Great Wealth Transfer, a predicted titanic pass-down of assets from older generations to Gen X, Millennials, and Gen Z. According to financial research firm Cerulli Associates, $124 trillion will change generational hands through 2048.

That said, not everyone is going to receive a staggering amount of money—or any inheritance at all, frankly. Much of this wealth is concentrated in a small segment of the population. But if you’re inheriting wealth, you’ll have choices to make, and planning ahead can help you avoid costly mistakes.

> “This is something that’s really powerful, that could really propel your financial security,” says Fahmin Fardous, a certified financial planner with Zenith Wealth Partners in Morristown, New Jersey. “Let’s look at where you are, and let’s look at what your goals are in life.”

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### Prepare Before the Inheritance

Receiving large sums of money and losing a loved one are both events that can throw you for a loop—emotionally and practically.

> “Grief can lead to rushed decisions,” says Scott Bishop, a CFP and co-founder of Presidio Wealth Partners in Houston. Establishing goals, understanding inheritance terms, and researching tax implications can put you in a better place to make smart choices, he says.

In other words, laying the groundwork now prepares you for the hard work later.

> “Emotionally, I often see people swing to extremes: either refusing to spend any money because it feels like ‘blood money,’ or spending too quickly because they don’t feel deserving of it,” says Mitchell Kraus, a CFP with Capital Intelligence Associates in Santa Monica, California.

No matter what emotion you feel at the time—whether happiness, sadness, or general overwhelm—it’s probably normal.

> “I’ve seen stress, I’ve seen excitement,” Fardous adds. Many clients have never dealt with this kind of money before and simply don’t know what to do with it.

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### Avoid Common Inheritance Mistakes

All those feelings can make it hard to act thoughtfully on newfound wealth, especially if it’s a life-changing amount.

One thing you shouldn’t do, Fardous warns, is start mentally spending the cash before you actually have it.

> “Whenever I see someone who’s received a windfall, they think of this wish list they’ve had,” she says. “And this money is getting spent in their head before it’s even hitting their bank account.”

That mindset can derail long-term security before the inheritance has even fully settled.

> “Don’t bank on an inheritance until you have it,” Kraus advises.

Some people seek professional advice—which is good!—but end up with financial pros who try to sell high-commission products, which isn’t ideal. If you work with a professional, consider finding a fiduciary: someone legally bound to act in your best interest.

> “Be sure you understand the difference between a fee-based financial planner, who receives commissions for recommending products, and a fee-only planner, who is paid only by clients,” Fardous explains.

Sometimes, pressure from friends and family can prompt hasty actions before you’ve had time to think. Kraus recommends setting a “90-day decision-free zone”—a period where you avoid making any irreversible financial moves.

> “It gives you a chance to reset, to think about what’s going on and how it’s happening, and that takes a lot of the pressure off,” Kraus says.

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### Have the Hard Conversations Early

Knowing what’s coming your way allows you to prepare for taxation and distribution. For example, if you’re inheriting an IRA, there are rules about when and how you must take distributions. Taxes may also be due on what you receive.

If you have the kind of relationship with your loved one where you can discuss potential inheritances, do it.

> “I can’t tell you how many families I see where parents plan to leave a lot of money for their kids, but the kids worry about parents not being able to get by, so they save money in case the parents need help,” says Kraus. “Having those conversations ahead of time can help.”

Consider asking about what you might inherit—money, property, investments—and whether there are any restrictions on those assets.

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### Make a Plan for Inherited Wealth

After taking some time to absorb your situation and emotions, experts recommend considering a few priorities.

Consulting a professional about your tax liabilities should be one of your first steps, Bishop says. After that, focus on building an emergency fund and paying down debt.

> “We don’t want to allocate anything toward anything else without you having an emergency fund of three to six months in high-yield savings and making sure you don’t have any high-interest debt,” Fardous recommends.

Next, consider your goals. Do you want to put money toward your children’s college education, buy a house, or boost your retirement nest egg?

> “The first thing you don’t want to do is go out and buy three Ferraris,” Bishop jokes. Think carefully about what’s important to you and what this money means for your future.

Ask yourself:

– Where do you want to go?
– Does this inheritance mean you can retire early?
– Would you want to retire early?

> “Think of it as an opportunity to reset your life,” Bishop says. “Big checks invite big mistakes. It’s important to slow down, have a plan, and then execute.”

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**Related Reads:**
– [4 Ways to Relaunch Your Finances in 2026]
– [6 Clever Ways I’ve Saved Money (That Weren’t as Scary as I Thought)]
– [Will U.S. Intervention in Venezuela Change Prices at the Pump?]

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*Kate Ashford, WMS™ writes for NerdWallet.*
Email: kashford@nerdwallet.com
Twitter: [@kateashford](https://twitter.com/kateashford)
https://www.theoaklandpress.com/2026/01/24/great-wealth-transfer/