Let’s say you’ve been given the drum that you are one of the beneficiaries of a will, and the inheritance you will be receiving is a large sum of money. While the news can be very overwhelming, we understand how easy it is to be confused, especially if this happens during an emotional time. Amidst the hustle and bustle, you will also need to direct your attention to what you will be receiving and how to properly steward it.

So what do you do? Do you invest? Will you take an extended holiday, or throw a barbie for all your friends? Here are some of the practical ways you can make the most out of your inheritance.

Manage your tax obligations first.

Although the executor of the will might have already taken care of the associated taxes, as a beneficiary, it would be best to double-check if you have remaining obligations to the Australian government.

Look into Capital Gains Tax (CGT) that you may have to pay if your inheritance will be sold off as part of liquidation of the estate. Remember that CGT regulations are different depending on each state, but don’t worry. There are ways to manage this without needing to ask an expert.

Treat the money as additional capital.

Keep in mind that prior to the settlement of the testament, your financial standing did not have you as a battler. Treat the inheritance as a bonus that you can use to build your wealth further.

With this mindset, it will be less likely for you to get swayed by momentary indulgences that will result in only temporary rewards. Be always on the lookout for the long-term benefits that you can enjoy from the extra resource.

Settle your existing financial responsibilities.

If you are aiming for a debt-free life, you may want to consider paying off your loans, and avoiding future financial burdens. It’s important to check out any exit fees that may apply, as well as other ways you could utilise the money, like investing it to build financial freedom.


Speaking of investment, there are heaps of opportunities, so you may want to get some advice in this area. More Importantly, you want to be able to use this money to start building multiple assets that could appreciate in value, while providing you with ongoing income.

You’ll also want to be advised on how to structure your assets to avoid creating a Capital Gains Tax monster in the future, or increasing your income tax. Building assets is about considering long term gain and using this to influence your financial goals.

Be clear about your financial goals.

Take care not to haphazardly spend your inheritance on investments you have not given thought to. Always look back to your long-term goals, when planning your finances.

Do you want to retire by 40? Or are you aiming for a million-dollar portfolio for each of your children before they reach 18? By specifically defining your target, you make it easier to apply asset-building moves.

Consult with an expert.

Finally, if you begin to considering going into money markets, debt consolidation, and other related financial ventures, you will need the knowledge and experience of a financial advisor who can help you learn the nature, risks, and returns of different investment types.

A finance expert can also guide you in how you are managing your finances, ensuring that you get the most out of your investments and with the least applicable taxes.

Understand the options you have as the beneficiary of a will. Have a chat with our financial experts today and find out how you can maximise your benefits from your inheritance.

Content is general in nature and not personal advice, you should seek professional advice before implementing any changes to your financial situation, we offer an initial complementary meeting to discuss your situation and outcomes you are after click here to find out more.