7 Things to do When You Receive an Inheritance Amount

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Managing and investing inherited liquid assets like cash, fixed deposits, PPF amounts etc., could be challenging for many as they have to deal with emotional loss and manage inherited amount.

Make the best use of the money so that it will help you build a secure future, achieve an ambition, or make some great memories! First and foremost thing to do is prioritize investment and allocate how much you would like to invest in each asset class.

7 Things to do When You Receive an Inheritance Amount

Don't try to find a solution immediately, take time and decide how and where you want to invest. However, you will be flooded with suggestions choose the one best for you and your family.

1) Clear Your Debt

If you are having any loan, you can start by clearing your debt. One needs to focus on loans such as car loan, personal loan as they attract high interest rates. Home loans can be kept aside as they help you in tax relaxations.

2) Make an Emergency Fund

If you have not set aside an emergency fund, little money can be kept aside as emergency fund.

3) Enhance your Savings

Some amount can be invested in financial instruments depending on the risk capacity. One can look to maximize the retirement fund by investing some amount to make old age more comfortable.

4) Asset Allocation

One should not invest all the amount in a single instrument, better to diversify by allocating to various instruments.

5) Buy Property

If inherited amount is huge, one can buy property which will be better asset compared to other investments.

6) Higher Education

Investing in ones further education or kids education is also better as you are investing in your future.

7) Bank Account

Hold all your inherited amount in bank account only, if you are still left with some cash, you can open Fixed deposit or tax saving fixed deposits

However, it depends on the amount you receive and financial commitments you have. As of now in India, inheritance wealth does not attract any tax.

GoodReturns.in

Read more about: inheritance
Story first published: Wednesday, December 10, 2014, 11:45 [IST]
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