How to Make the Most of an Inheritance Without Regret
What to do with this inheritance?
It sounds like an easy question when you see other people face it.
You might have even thought to yourself, "I know exactly what I’d do if that ever happened to me."
Maybe you pictured paying off your mortgage, taking a dream holiday, finally cutting back work hours or investing the money so you could get ahead.
But now that it’s happened to you, and the money is sitting in your bank account or waiting in an estate account somewhere, it doesn’t feel so straightforward.
In fact, it might feel harder than anything else you’ve ever had to deal with when it comes to money.
Why?
Because this isn’t just money.
This isn’t a bonus from work or a surprise tax refund. This is money that came from someone you knew, someone you loved, someone who probably worked hard their whole life and decided to pass something on to you.
There’s a weight to that. A sense of responsibility. A fear of getting it wrong.
Suddenly, every decision feels like it needs to mean something. You want to honour their legacy, but you also want to make sure you don’t waste the opportunity.
And you want it to count for you, your kids, your future, but you're not sure how.
Most people don’t have a plan when they receive an inheritance.
And without a plan, it’s hard to know what the money is actually for.
That’s where things can get messy. You start reacting instead of deciding. You spend a bit here, you save a bit there, you make a decision that feels good in the moment but doesn’t really move things forward.
Or worse, you do nothing, paralysed by fear of making the wrong choice.
Step 1: Sit with it.
Give yourself space.
Don’t rush to make a decision. Don’t listen to the little voice in your head telling you you’re missing out on opportunities or that you need to act fast before you lose momentum.
There is no rush. Give yourself at least a month.
Let the emotions settle. Let the grief breathe. Let your mind catch up to what’s actually happened.
Once you take a step, it can be hard to undo. And it’s a lot easier to be patient now than it is to try and reverse a rushed decision down the line.
Step 2: Reflect on the person.
Think about the person.
Not in a vague sentimental way, but deeply. What did they care about? What did they value? What would they want for you?
Not what they’d want you to do with the money, but what they’d want you to feel.
Maybe they’d want you to feel secure. Or proud. Or generous. Maybe they’d want you to create something. Memories with your family, stability for your kids, freedom for yourself.
This isn’t about doing what they would have done. It’s about using the money in a way that connects with who they were and what they meant to you.
Step 3: Get clear on your options.
This is where most people hit a wall.
Inheritance doesn’t come with instructions. There’s no correct path.
You could invest it, save it, pay down debt, help your kids, give to charity, take a trip, upgrade your home, or any combination of these things.
The right path for you depends entirely on your goals. Financial, personal, and emotional.
This is where having an adviser helps. Someone who can step back with you, take the emotion out of it just enough to bring some clarity, and help you weigh up what’s actually important to you.
A real story:
I worked with a couple a while back who found themselves in this position. They were in their 30s with young kids. The wife had just lost her mum and received a significant inheritance.
It was enough to shift their financial future. Pay for schooling, contribute to a deposit for a bigger family home, invest for the long term.
But she didn’t want it to be all practical. Her mum had always dreamed of going to Disney World but never got there. So they decided to take their kids. To create that same memory in their own way as well as doing all the financial things.
The planning wasn’t just financial. It was personal. And that made all the difference.
Step 4: Measure what matters.
It’s one thing to make a plan. It’s another to make it count.
The fastest way I’ve seen people squander an inheritance is not through big mistakes, but through lack of intention.
They don’t do anything wrong, they just don’t do anything on purpose.
The money sits in an account, gets used here and there, life moves on and before they know it, it’s gone.
Not wasted exactly but not used well either.
Having the right systems in place, whether that’s spending plans, investment plans, or simple check-ins, makes all the difference.
Because money with purpose tends to stick around.
Money without it tends to disappear.
You don’t have to turn this inheritance into a perfect financial move.
But you do want it to mean something.
And meaning doesn’t happen by accident. It happens when you pause, think, and act with care.
Summary of the key actions:
Wait a month before making any decisions. Give yourself time to process.
Reflect on the person who passed and what values they held.
Map your financial and personal goals. Identify what matters most.
Consider getting advice to explore your options clearly and practically.
Use some of the money to create a tangible memory or legacy.
Set up systems to measure and track how the money is used over time.
That’s how you make this money and this moment count.
Want to know more?
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The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.