27 answers

JFF - What Would You Do with a Big Inheritance?

If you were left an inheritance, say like - $100,000, what would you do with it? Would you pay off your house if you can or your car note and other bills? Or save it? Or do some of both? If you were to save it, would you put it in a regular savings account or something else?

What I would love to do is find a house that meets my needs for said amount pay cash for it and sell the one that I have. But I worry about no longer having that cushion so to speak and the fact that it would lock us into that house (if we want to continue not having a house payment). So my thoughts are I would pay off some of my other debt (medical bills, credit cards, etc) and maybe refinance my vehicle and home. Then put the rest into savings. While $100,000 is good chunk of change it's not huge in today's standards.

So what would you do with it? Thanks!

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Featured Answers

My husband just received around that amount. He invested all of it.
BTW--there is no tax for us. The money was already taxed.

3 moms found this helpful

I have inherited a little more than that. My parents both gone and my husbands also. We own 2 houses outright with no mortgage.

That much money really isn't the end of worries.

2 moms found this helpful

If I had debt, I would pay all of that first. I would also plan to take at least some of it (maybe $5000 or so) and plan an awesome vacation or buy something amazing that I had always really, really wanted. I would probably save the rest.

If I was debt free, and wishing I had a bigger house, I would definitely look into buying a new home.

1 mom found this helpful

More Answers

My husband just received around that amount. He invested all of it.
BTW--there is no tax for us. The money was already taxed.

3 moms found this helpful

It would go towards my son's future college tuition, hands down. Sure I can give it all to charity, but they have alot of my money and time already so I wouldn't feel bad.

MAYBE a thousand or two would go towards front row seats if the Texans ever make it to their 1st Superbowl. And MAYBE a few hundred would be spent on front row seats for U2 and Adele...but that's it.

2 moms found this helpful

If you need your mortgage interest to lower your taxes, and if you don't have a very high interest rate, I would not pay off your house. Car note, yes, and other bills.

THEN, and this is important, put back the money that you are saving on the principle of these debts. That way you don't spend it on something else.

Refinancing your home after you pay off your other debts is more likely than when you have these other debts.

And of course, seek out tax advice from a professional tax accountant before you do ANYTHING.

Good luck,
D.

2 moms found this helpful

I have inherited a little more than that. My parents both gone and my husbands also. We own 2 houses outright with no mortgage.

That much money really isn't the end of worries.

2 moms found this helpful

$100,000 differs in value depending on where you live. Around here the average price of a house is $84,000. My house is owned free and clear but I think if I had that kind of money I would buy a new house.

1 mom found this helpful

It's tough to get an inheritance these days if the older family members are really elderly - we have both a mom and a MIL in nursing homes and that has used up all the money they had from their home sales & life savings. It's not wrong to use their own resources first - before using Medicaid/taxpayer money - but I'm just saying - with modern medicine keeping little old ladies alive for many more years there's usually not much left.

We are waiting for an inheritence now from my late aunt who had no children. There are many cousins so it's won't come to much more than $15K - and we have combined $40K in life insurance policies on my mom and MIL - so we will have some inheritences coming in over the next few years in all likelihood. but it won't do much other than pay off debt, put some more money towards college funds and if we're lucky, reface the kitchen cabinets and pay for new counters.

But it there was $100K coming I'd redo my kitchen - knock down the outside wall and go out at least 5 feet, and go on a European vacation with the family. That would be a once in a lifetime thing!

1 mom found this helpful

It's totally fantasy time because none of my relatives have that kind of money.
$100,000 would not be enough to pay off the mortgage - it's our only debt - and we just refinanced it.
We'd probably bank it for now.
When the housing market recovers just a little bit more, we'll sell our 1st house and the proceeds from that with that bit in the bank will pay the current mortgage off.
Then we'll be debt free and will continue saving up for retirement and our son's college.

1 mom found this helpful

Student loans. Want to hear the sad thing - it would take almost ALL THAT MONEY to pay for both my education and my husbands. :-(

Ahh well - I'd put whatever was left into savings and take the family on a nice vacation.

1 mom found this helpful

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