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Don’t Waste an Inheritance: Time, Clarity, and Stewardship
- Jose Alvarez, CFP®, MBA
- Nov 26
- 7 min read
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The First Quiet That Makes Space for Better Choices
When an inheritance lands, it never feels like a win. It feels complicated, heavy, and personal. I’ve sat with a lot of people in that moment, and the same two forces show up every time.
Grief wants time.
Responsibility wants decisions.
Those two don’t line up on their own. The best way I’ve seen to start is simple: create a little quiet. Move the money to a safe, boring place. Gather the paperwork. Let the house breathe again. You don’t need a perfect plan inside a week. You need room to think without feeling like you’re going to break something.
This is what I would consider: I’d park the funds in a clearly labeled high-yield savings account while the estate details settle and emotions cool. Not as a strategy, just as a holding pattern that keeps options open. Someone else may prefer a different landing spot or a different timeline, which is completely reasonable.
One Sentence Before Any Spreadsheets
Have a purpose before making a plan. A lot of times this starts with writing down a simple statement to set the intentionality. It doesn't have to be fancy. It just says what the gift is for in your life. Short enough to read out loud. Honest enough to hold up when headlines get loud or nerves flare.
When that sentence exists, choices get easier. You can stack decisions against it and tell whether they belong.
This is what I would consider: I’d write one sentence with my spouse, read it out loud, and put it somewhere we’ll see it. If it feels off after a week, I’d rewrite it. The goal isn’t poetry. It’s alignment.
Define “Waste” so Drift Doesn’t Decide for You
Everyone says the same thing: “I don’t want to waste it.”
Fair.
The problem is that waste usually isn’t one big splashy purchase. Waste is drift. It’s the quiet creep of subscriptions, upgrades, and impulse choices that don’t match your purpose, but keep charging your card anyway.
So, I'd write down a matched pair: what counts as waste for this house and what counts as value. Waste might be stress-creating recurring costs, scattered projects that don’t make life better, or confusion that makes you avoid looking at accounts.
Value might be a calmer month, fewer moving parts, long-term options that keep doors open, or a couple of intentional experiences you’ll still talk about later. With those definitions on paper, you’re not guessing afterward. You’re deciding beforehand.
This is what I would consider: I’d keep two short lists for the first year, “What counts as waste to us,” and “What counts as value to us,” and I’d revisit them each quarter. Your lists might look different. That’s the point.
Buckets Beat Micromanaging When Life is Full
I don’t start with a line-by-line budget when someone’s grieving. I like to start with buckets. Four of them. Buckets show tradeoffs without demanding precision you don’t have yet.
Safety
Cash that keeps the household steady when the furnace dies, the car needs work, or a job changes.
Simplicity
Moves that lower mental load, cut clutter, and make the month predictable.
Long-term growth
Money set aside for future goals, invested in ways that fit your temperament and account options.
Life and legacy
Purchases or experiences that honor the person you lost and actually improve daily life.
I’m not putting percentages on anyone. I’m giving a way to sort choices, so the conversation calms down. If your purpose is your compass, these buckets can be your map.
This is what I would consider: I’d sketch rough ranges for the buckets, live with them, then adjust. Someone else may want tighter ranges, different buckets, or a different order. The framework should serve you, not trap you.
Form Isn’t Purpose and That Distinction Helps
A pattern I see a lot: people want to keep the money in the exact form their parent used.
If Dad loved cash, cash feels sacred.
If Mom held certain securities, those tickers feel untouchable.
I respect the feeling. I just separate form from purpose. What value did your parent care about. Safety. Independence. Opportunity. Generosity. Once you name that value, you can honor it without treating the specific asset like a museum piece.
Purpose endures. Form can change.
This is what I would consider: I’d write a single line that names the value I believe my loved one cared about, and I’d judge future moves by that value rather than by the asset’s original shape. Your read may be different, and that’s okay.
Wisconsin’s Backdrop: Titling, Commingling, and Clean Records
It might not be the sexy side of money but the legal backdrop matters.
Wisconsin is a marital property state. A lot of what’s acquired during marriage is shared but there are meaningful exceptions that many people aren't aware of:
Inheritances
Gifts
Insurance Proceeds
These may be treated as individual property when they aren’t commingled. Titling, recordkeeping, and beneficiary designations do a lot of work in the background, especially during stressful moments when clarity is priceless.
Couples sometimes turn this into a trust test. It doesn’t have to be that. Clean lines can honor the decedent’s intent, reduce confusion later, and lower resentment. Documentation is part of stewardship, not a judgment on the marriage.
This is what I would consider: I’d keep inherited funds in an individually titled account while we’re making decisions, keep clean records of where money came from and where it went, and confirm beneficiaries on all relevant accounts. I’d also talk with a Wisconsin attorney to understand how the marital property rules, titling, and any agreements fit our facts.
Account Types, Taxes, and the Power of a Simple Folder
Not every inheritance is plain cash. Sometimes it’s a retirement account with distribution rules and sometimes assets were sold in the estate and basis was reset - those details matter later. The calendar matters too. A little organization early saves a lot of stress later.
I’m not asking anyone to live in spreadsheets. I’m saying a simple setup pays for itself. One page that lists institutions, account types, and key contacts. A folder with statements and letters you might need at tax time. A couple of reminders on the calendar to follow through.
This is what I would consider: I’d build a one-pager, keep copies of core documents, and schedule a short meeting with a tax professional to confirm what’s taxable and when. You might already have this dialed in. Great. The goal is clarity.
Simplicity Gives Your Attention Back to Your Life
Over the last few years, I’ve doubled down on this:
Simplicity isn’t about being trendy or minimal.
It’s about attention.
The more accounts, statements, and small decisions in your month, the less attention you have for work, health, and relationships. When the money side is simpler and more predictable, you get that attention back.
You’ll feel it in little ways that will carry fewer surprises and open you day - and your life - more. Shorter bill-pay sessions. Less doom-scrolling your balances when markets wobble. The financial side of your life stops shouting for daily reassurance.
This is what I would consider: I’d mark any account, subscription, or balance that doesn’t earn its keep in clarity or value, then decide whether to keep it or consolidate. Your tolerance for moving parts may be higher. That’s fine. The test is attention, not aesthetics.
Investment Structure Without Product Picks or Heroics
People ask for the “best” portfolio after an inheritance. I get why people ask the question but, frankly, it's meaningless. The honest answer is everyone's favorite answer of...it depends!
It depends on your goals, timelines, taxes, and temperament.
Some folks prefer broad, low-cost diversification because it’s easy to live with when life is full. Others prefer more active or values-based approaches because that fits how they see the world. Either way, the trait that matters most is staying power. If the design doesn’t match your nerves, it won’t hold and it won't matter.
This is what I would consider: I’d pick an allocation that fits temperament, automate contributions where possible, and set one standing annual review to rebalance and reflect. Someone else may take a very different path and be well served by it. Consistency is the common thread.
What the first Year Can Feel Like When It Works
By the end of the first year, the healthiest stories share the same feel. Accounts are cleanly labeled, life feels calmer, and your purpose still fits.
The inheritance has turned into cushions, habits, and a couple of planned memories you’ll actually smile about later. The money didn’t vanish into drift, and it didn’t get stuck in amber. It started serving your life.
You don’t “win” this by being clever but, rather, you "win" it by being steady, being resilient, and being committed. The hard part is early, when everything feels fragile. Once your purpose and buckets exist, the whole thing quiets down. The gift starts working for you, not running you.
This is what I would consider: I’d set one recurring “Money Day” each year. Read your purpose. Check beneficiaries. Rebalance if needed. Decide whether the buckets still match the life we’re actually living. Someone else may prefer quarterly touchpoints. Pick the rhythm you’ll keep.
The Big Idea, Kept Simple
An inheritance is part love letter, part responsibility. It doesn’t demand speed, and it doesn’t reward bravado. It rewards attention, clarity, and consistency. A short mission, a few simple buckets, and a pace that fits your temperament can turn a hard season into a sturdier future. That’s not a recommendation. That’s what I’ve seen work, and that’s what I’d consider if it were my call to make.
Jose Alvarez, CFP®, MBA
Financial Advisor Founder
Harvest Horizon Wealth Strategies
The information presented in this blog is the opinion of the author and does not reflect the views of any other person or entity unless specified. The author may hold positions in any securities discussed in this blog. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. Images included in this blog are created by artificial intelligence. Any resemblance to any existing persons, past or present, is purely coincidental. The information provided is for informational, entertainment, and educational purposes and should not be construed as advice. Advisory services are offered through Harvest Horizon Wealth Strategies LLC, an investment adviser registered with the state of Wisconsin.