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### Preparing for the Great Wealth Transfer: What You Need to Know About Inheriting Wealth

We’re in the midst of what experts call 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, an estimated $124 trillion will change hands between generations through 2048.

That said, not everyone will receive a staggering amount or any inheritance at all. Much of this wealth is concentrated in a small segment of the population. But if you are inheriting wealth, you will face important choices. 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 a large sum of money and losing a loved one can both be emotionally and practically overwhelming.

“Grief can lead to rushed decisions,” says Scott Bishop, 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 later. In other words, laying the groundwork now prepares you for the work ahead.

“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,” shares Mitchell Kraus, CFP with Capital Intelligence Associates in Santa Monica, California. No matter the emotions—whether happiness, sadness, or overwhelm—they are normal.

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

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### Avoid Common Inheritance Mistakes

All those emotions can make it difficult to act thoughtfully, especially when the inheritance is life-changing.

One big mistake to avoid, says Fardous, is mentally spending the cash before it even arrives. “Whenever I see someone who’s received a windfall, they think of this wish list they’ve had,” she explains. “And this money is getting spent in their head before it’s even hitting their bank account.” This mindset can derail long-term security before your inheritance is even fully settled.

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

Seeking professional advice is a good move, but beware of financial advisors who push high-commission products. If you do consult a professional, consider a fiduciary—someone legally bound to act in your best interest. Understand the difference between a fee-based financial planner, who may earn commissions on products recommended, and a fee-only planner, who is paid solely by clients.

It’s also common to feel pressured by friends or family into making hasty decisions. Kraus recommends instituting a “90-day decision-free zone,” a period during which you make no 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,” he says.

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### Have the Hard Conversations Early

Knowing what’s coming your way can help you prepare for tax and distribution issues.

For example, if you inherit an IRA, specific rules govern when and how you must take distributions. There may also be taxes due on the inheritance.

If you have a relationship where you can discuss potential inheritances with your loved ones, do so. “I can’t tell you how many families I see where parents are leaving a lot of money for their kids, but their kids are so worried about their parents’ well-being that they’re saving money in case their parents need help,” Kraus shares. Having these conversations early can help alleviate uncertainty.

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

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### Make a Plan for Your Inherited Wealth

After taking time to process the situation and your emotions, experts say there are several priorities to address.

One of the first steps is consulting a professional about your tax liabilities, Bishop advises. After that, focus on your emergency savings and debt.

“We don’t want to allocate money elsewhere without you having an emergency fund of three to six months’ worth of expenses in a high-yield savings account and making sure you don’t have high-interest debt,” says Fardous.

Next, consider your personal goals: Do you want to fund your children’s college education, buy a home, or boost your retirement nest egg?

“The first thing you don’t want to do is go out and buy three Ferraris,” Bishop says with a smile. Think about what’s important to you and what this money means. Does this inheritance allow you to retire early? Would you want to?

“Think of it as an opportunity to reset your life,” Bishop adds. “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: [email protected]
Twitter: [@kateashford](https://twitter.com/kateashford)
https://www.macombdaily.com/2026/01/24/great-wealth-transfer/