What to Do After Receiving an Inheritance

What to Do After Receiving an Inheritance

If you inherited money in Tennessee and your first thought is, “What now?” you’re not alone.

An inheritance often arrives during grief, family transitions, and major life questions. That combination can make even simple financial decisions feel overwhelming. When significant assets are involved, the pressure to make the right choices can become even greater.

The most important message during this time is simple: do not rush. There is rarely a ticking clock that requires you to immediately invest, spend, or distribute inherited funds. The best first step is usually to pause, protect the assets, and create a plan so that decisions come from clarity rather than pressure.

Phase One: Protect the Assets

The first phase focuses on protecting what you have inherited. During the first couple of weeks, the primary goal is simply to avoid preventable mistakes.

If cash has been received or an asset has been sold, keeping those funds in a safe and liquid place such as a high-yield savings account or money market fund can provide stability while you evaluate your options.

This period is also a time to avoid major decisions. Large purchases, gifts, loans, or complicated investments can wait until you have a clear understanding of what you inherited and how those assets fit into your long-term goals.

Organization is also important early on. Gathering documents such as:

• Death certificates
• Trust or will documents
• Account statements
• Beneficiary forms

helps create clarity around the assets and the responsibilities involved in settling the estate.

Phase Two: Understand What You Inherited

The next stage involves identifying the assets and understanding how each type behaves financially and legally. Not all inherited dollars function the same way.

Assets may include:

• Cash accounts
• Taxable brokerage investments
• Retirement accounts
• Real estate
• Life insurance
• Business interests

Documenting the value of these assets around the date of death is important for tax reporting. At the same time, it helps to identify near-term financial obligations such as taxes, legal costs, or property expenses so those funds can be set aside before making investment decisions.

Inherited Retirement Accounts

Inherited retirement accounts often create the most confusion. Distribution rules depend on the type of beneficiary and whether the original account owner had begun required minimum distributions.

For many non-spouse beneficiaries, inherited retirement accounts must be fully distributed within ten years of the original owner’s death. Because withdrawals from traditional retirement accounts are typically taxed as ordinary income, the timing of those withdrawals can significantly affect the overall tax outcome.

Waiting until the tenth year to withdraw everything may seem simple, but it can create large and unexpected tax consequences. Coordinating these decisions with a CPA or financial advisor can help ensure distributions are handled strategically rather than reactively.

Phase Three: Build a Plan Around Your Goals

Once the assets are protected and the rules are understood, the focus can shift to building a plan around personal goals.

Many individuals choose priorities such as:

• Financial security
• Supporting family members
• Charitable giving
• Creating more flexibility in their lives

When these priorities are clear, it becomes easier to determine how the inheritance should be allocated between short-term needs, medium-term goals, and long-term investments.

If this process feels overwhelming, that is completely normal. Inheritances often arrive during emotional periods, and many individuals are navigating these financial decisions for the first time.

Working with a coordinated team—including financial planners, CPAs, and estate professionals—can help bring structure and clarity to the process.

At PYA Waltman Capital, we help families navigate inheritances with a thoughtful and values-based approach. With the right guidance and a clear plan, inherited wealth can become a tool that supports both your financial future and the priorities that matter most to you.