What do you do with inheritance?

[bell]

As long as he doesn't run out and buy the newest nissan Z I think he'll be alright

[stomachmonkey]

Originally Posted by tabs

Open a bank account and deposit the dam thing....FDIC guarantees each account to 100K...if it is more than that go to however many banks as it takes to keep 100K in each account......

Thought you could open multiple accounts at an institution and be covered. Meaning FDIC covers the account and not the institution.

Even still I'd prob opt for separate institutions.

[regency]

If you live in California, I'm sure a few "special" taxes await!

[Tobra]

It is still income tabs, Uncle Sucker takes his cut of income, though you might be okay due to the vagaries of tne inheritance tax rules. Talk to your CPA before depositing it, then do what Art sez.

[wdfifteen]

Originally Posted by Porsche-O-Phile

NOBODY here has suggested hookers and blow yet? Shame on you guys.

+1 Gramma didn't give you this money to stress you out. She wants you to be happy.

[David]

If you're married, open a new account in your name only preferably in a different bank than you and your wife use. In other words, don't co-mingle inheritance.

[Laneco]

Maybe this sounds a bit odd, but here's what I would do.

Get a safe deposit box. Put the uncashed check in there. Just leave it for a while until I've wrapped my brain around having money and decide what to do with it. Maybe it would only take a couple of weeks to meet with a CPA and consider my options, but it might take me a couple of months, too.

It seems like if I cash a check, that I somehow feel like I must use the money. But if I don't cash it, feels like the pressure is off. Feels like I can take my time and make a good decision.

Of course, I'll never have to worry about an inheritance - LOL!

angela

[Hard-Deck]

It is temporarily at $250,000, normally $100,000

That is per DEPOSITOR. In example: if you have $1M and 10 people on the signature card, it's all covered in one account. Dumb idea, but you get the jist.

Originally Posted by stomachmonkey

Thought you could open multiple accounts at an institution and be covered. Meaning FDIC covers the account and not the institution.

Even still I'd prob opt for separate institutions.

[Noporscheform]

The above comments show a complete lack of financial understanding by most people on this board. You have not given enough information for a quality answer, however verifying what type of distribution you are getting with your CPA and Uncle is a good start. Then hire a fee only financial planner to assit in devloping a long term starategy.

[Leland Pate]

Originally Posted by bell

As long as he doesn't run out and buy the newest nissan Z I think he'll be alright

Ouch!

Low blow!

[Joeaksa]

Originally Posted by Racerbvd

Hold it until your CPA sets up a trust for your trust check.. If you deposit it directly without taking steps, you will loose a large part to taxes..

My thoughts exactly. You may not want the money in your name, but put it in a private trust or the like. If you need more help with this let me know. Not going to post much about this on the open internet.

No reason to give 50% of it to the govt unless you want to pay for everyone who is sitting on their azz all the time not looking for work.

Leland, BTW will be in Philly in 10 days-two weeks. Up for another dinner with Tim, Sniper and the usual suspects?

Joe A

[Mark Henry]

Pay off your debt, buy a house that you can easily sustain with your income level and tell your banker to fuch off.

[tabs]

Originally Posted by stomachmonkey

Thought you could open multiple accounts at an institution and be covered. Meaning FDIC covers the account and not the institution.

Even still I'd prob opt for separate institutions.

Yes there are ways to do it, it is done by the way the ownership of the account is vested. However if things start to get shakey the FDIC can hold your feet to the fire...and go by the letter of the law..which means YOU LOSE...they have come close to holding peoples feet to the fire back in the 1990's...so don't think it can not happen..

Also when FDIC has to pay off it takes awhile to get your dinero...as in roughly 9 MONTHs

Much better to spread the money out...in different institutions..

Also STAY AWAY FROM BOND MUTUAL FUNDS....If one has the dinero one should always build their own portfolio of Bonds...WhY...With indivdual bonds one can always wait till they mature to get their PRINCIPLE BACK...The value of a Bond fluctuates with the rise or fall of interest rates. If you should buy into a Bond Mutual Fund when INTEREST RATES ARE LOW like they are right now....you are paying a premium for those Bonds which is reflected in the Mutual Fund share price and if interest rates should rise the VALUE OF THOSE BONDS WILL DECREASE..and the Mutual Fund Share price will DECREASE Permanently....because they reset the NET ASSET VALUE OF THEIR BOND PORTFOLIO DAILY...

TOBRA an inheritence is NOT CONSIDERED TO BE INCOME AND TAXED AS SUCH...

Yeah...TRUST NO ONE...trust is to be earned...and that takes time. You will find that MOST FINANCIAL ADVISORS DO NOT KNOW SHYTE...they only know the Party Line of what the company tells them...THEY ARE SALESMEN...


BTW DO NOT TRUST ANYONE INCLUDING WIVES...so do not co mingle funds nor use the money as the basis of income for a car loan...however if you are married and do not have a prenup then she will most likely get HALF...if the relationship should go south.

[bell]

Leland that was long enough ago I thought it would be funny by now.....sorry LOL

Either way good luck

[jwasbury]

Gifts and inheritances are NOT INCOME and are not subject to Federal income tax when received...California may have "special" rules, I don't know off the top of my head.

Federal Gift and Estate taxes apply to the giver only, not the givee.

I agree with the advice to pay off debt first if you have any. You are not likely to find a better rate of return from "safe" investments. I am mostly holding cash these days, and of course "investing" in old german auto parts

[Zeke]

I know any gift coming my way will in part get spent on gratification.

[LeRoux Strydom]

Originally Posted by Laneco

Maybe this sounds a bit odd, but here's what I would do.

Get a safe deposit box. Put the uncashed check in there. Just leave it for a while until I've wrapped my brain around having money and decide what to do with it. Maybe it would only take a couple of weeks to meet with a CPA and consider my options, but it might take me a couple of months, too.

You're right, that is odd advice.

Go deposit that cheque in a bank account, at least start earning some interest on the capital while you decide where to invest the money. Get some advice from a financial planner who will analyze your situation (assets, debts, income, retirement plans etc) and advise a course of action suited to your need. If he/she starts flogging some dubious products, look for another advisor.

Don't worry about the FDIC guarantee, there are many individuals and companies with much more cash in the bank than 6 figures. Just use a reputable bank.

[Groesbeck Hurricane]

Really it is up to you and your wife and what yall decide to do.

Pay off debt, take the money you were spending on debt and invest in yall's future.

Real estate, they aren't making any more of it, might be a good investment.

We bought an annuity. Many here will tell you how dumb that was but at the time it was the wisest thing we saw to do with the money. It has kept my Mother living rather confortably this past decade + and it still has plenty of power left to go further.

I would do what felt best to us. I'll take my low five figure commission in chocolate please!

[Rufblackbird]

tell your wife she can have access to (part of) the money as soon as she gets you out of the armpit of california

me? I would probably open (start?) a trust, then use part of it to pay off credit cards, part to start my own business, and save the rest.

[greglepore]

Originally Posted by David

If you're married, open a new account in your name only preferably in a different bank than you and your wife use. In other words, don't co-mingle inheritance.

Ditto-regardless of how solid your marriage is- assuming doing this won't set off alarms. Its seperate property until you comingle.

Taxes are payable by estate/trust - not you.

I'd invest most but buy yourself a treat....