Inheritance - what to do with it?

[Anonymous]

I'm in my early 40s, two kids, husband -- we have good retirement, double income, 529s for our kids, a couple houses (with mortgages), and I'm inheriting around 125k from a relative. My spouse's first home is only in his name, not mine. I'd like to keep this inheritance in a separate account only in my name for this reason too - should for any reason we divorce at some point. We both love each other very much and have been married for 14 years, but I'm a realist and don't come from a wealthy background and because he bought the first property before he met me I'm aware that my name isn't on the deed and also this inheritance if I pool it with our other income would be his too. We have around 30k in a savings account currently. So -- what should I do with this 125k? Put 25k in a high yield savings account and the rest in the market? I know it's not much, but I'm looking at ways to grow it over time and also have a small amount that is liquid.

[Anonymous]

Anonymous wrote:
I'm in my early 40s, two kids, husband -- we have good retirement, double income, 529s for our kids, a couple houses (with mortgages), and I'm inheriting around 125k from a relative. My spouse's first home is only in his name, not mine. I'd like to keep this inheritance in a separate account only in my name for this reason too - should for any reason we divorce at some point. We both love each other very much and have been married for 14 years, but I'm a realist and don't come from a wealthy background and because he bought the first property before he met me I'm aware that my name isn't on the deed and also this inheritance if I pool it with our other income would be his too. We have around 30k in a savings account currently. So -- what should I do with this 125k? Put 25k in a high yield savings account and the rest in the market? I know it's not much, but I'm looking at ways to grow it over time and also have a small amount that is liquid.

why? assuming keeping this as "yours" vs "ours", why not dump the whole thing in the market and let it sit?

[Anonymous]

Just set up an account with your name on it and keep on file any info you have on the inheritance. Generally inheritances are not considered marital assets if they are kept separate. And, don't add any family assets into the account.

[Anonymous]

Unless you have a likely need for the money in the next five years or so, just put it all in an S&P 500 index fund or similar low-cost stock investment. Presumably, you already have enough cash savings to be comfortable now. If not, then establish or increase those savings first.

I can't speak to the legal issues of keeping the money separate from your joint accounts. I can say that opening a credit card account in your own name and establishing a credit score for yourself is never a bad idea.

[Anonymous]

Personally, if it was me, I’d take $25k and add it to your family savings. You guys don’t have much in savings. The rest I’d put in an s&p 500 fund, probably vanguard. This fund I’d put in my name

[Anonymous]

Anonymous wrote:Personally, if it was me, I’d take $25k and add it to your family savings. You guys don’t have much in savings. The rest I’d put in an s&p 500 fund, probably vanguard. This fund I’d put in my name

She wants to keep it separate so that it's not considered marital property. If she commingles it like you suggest, it will defeat her intentions.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Personally, if it was me, I’d take $25k and add it to your family savings. You guys don’t have much in savings. The rest I’d put in an s&p 500 fund, probably vanguard. This fund I’d put in my name

She wants to keep it separate so that it's not considered marital property. If she commingles it like you suggest, it will defeat her intentions.

I would only commingle $25k. I get wanting to keep it delay, but they don’t have much in savings. She should look out for herself, but she’s also part of a family. Sometimes you have to give a little

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Personally, if it was me, I’d take $25k and add it to your family savings. You guys don’t have much in savings. The rest I’d put in an s&p 500 fund, probably vanguard. This fund I’d put in my name

She wants to keep it separate so that it's not considered marital property. If she commingles it like you suggest, it will defeat her intentions.

I would only commingle $25k. I get wanting to keep it delay, but they don’t have much in savings. She should look out for herself, but she’s also part of a family. Sometimes you have to give a little

Can’t she just contribute it to the family if and when it’s needed? It’s not like giving 25K to the family will make that family investment feel more motivated to succeed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Personally, if it was me, I’d take $25k and add it to your family savings. You guys don’t have much in savings. The rest I’d put in an s&p 500 fund, probably vanguard. This fund I’d put in my name

She wants to keep it separate so that it's not considered marital property. If she commingles it like you suggest, it will defeat her intentions.

I would only commingle $25k. I get wanting to keep it delay, but they don’t have much in savings. She should look out for herself, but she’s also part of a family. Sometimes you have to give a little

Commingling a little is still commingling---it's possible that all of it will be considered marital property once commingled.