Inheriting a Lump Sum / Property


People who benefit from a substantial inheritance should consider their position with great thought.

  • The inheritance may be used to alter the individual’s current income and expenditure, or it may be set aside to provide for the future, depending on their priorities.
  • A great danger with inheritance is that the individual may take on too much, or sometimes too little, risk. Some may be tempted to take on a gambling approach when suddenly having that extra funds, where they may take large risks by investing in new businesses, property ventures or other large projects.

  • Inherited investments or property could be sold and the proceeds used to meet individual needs based on current circumstances

  • Depending on the inherited amount, the impact could be: repaying the mortgage, a fund for paying education fees, a retirement fund, purchasing a more expensive home or another property, starting a business, or taking early retirement.

  • Any unneeded inheritance may be passed on to the next generation. The way it is passed will generally depend on the age of the person who will receive the inheritance.

Financial Planning Areas

  • Importance of investing inheritance
  • Where to invest the inheritance
  • Advice on passing on inheritance to the next generation