The simple answer is YES, it’s your money to spend or invest.

We inherited money. We took out the IRA money immediately and paid taxes on it so we can use it as we want. But we invested most of the money in index funds, some in 529s, and some in money market funds.

We still have our own retirement accounts for later. We are in our early 50s so can’t access our own retirement accounts yet. Not clear what the inherited money will be used for. If we had been younger we would have used it to buy a new house in a better school district there is no reason to move now that our kids are in college. So we haven’t spent any of it at all.

Anonymous wrote:I inherited my dad's IRA. I need to empty it by 2032, which is just in time for me to be able to access my retirement accounts. So, I just retired. I'll use the inherited money to live on until I can access my retirement accounts and my pension. Wish he could have lived longer to spend his retirement accounts, but it wasn't the case.

What do you do for health insurance?

I inherited my dad's IRA. I need to empty it by 2032, which is just in time for me to be able to access my retirement accounts. So, I just retired. I'll use the inherited money to live on until I can access my retirement accounts and my pension. Wish he could have lived longer to spend his retirement accounts, but it wasn't the case.

Anonymous wrote:If you’re inheriting a significant sum, get a financial advisor. If you’re inheriting your parents’ deferred retirement accounts for example it’s a bit complicated — you could take all the money at once or you can do it over 10 years but you have to pay the taxes on it once you pull it out.

The beneficiaries to the IRAs could be trusts so you might not have complete control. With marital deduction trusts the goal is to limit estate taxes and generation skipping trusts the goal is to keep the money within the family and to benefit as many generations as possible. The only way you would know is if you asked.

pp, legal is all that matters

Anonymous wrote:Don’t touch it. Other parent and sibling are so nasty and think it’s theirs. I regularly offer it to them to shut them up.

In my case siblings all get an equal share. If they don't like that, too bad. If anything I am the one who should complain since I do significantly more work on a daily basis than siblings and yet will receive the same amount. If anyone complains, I won't be listening.

OP

Anonymous wrote:If you’re inheriting a significant sum, get a financial advisor. If you’re inheriting your parents’ deferred retirement accounts for example it’s a bit complicated — you could take all the money at once or you can do it over 10 years but you have to pay the taxes on it once you pull it out.

That is a good point about the taxes on retirement accounts. Yes, some will be in retirement accounts and some will be money markets, checking accounts, etc. They are of the generation that has a lot of accounts here and there.

Anonymous wrote:depends on how the estate is structured to distribute the funds. if DH and I died today our $$$$ would be paid out over certain ages or milestones among our children.

That is a good idea for young people. Well done.

OP

depends on how the estate is structured to distribute the funds. if DH and I died today our $$$$ would be paid out over certain ages or milestones among our children.

If you’re inheriting a significant sum, get a financial advisor. If you’re inheriting your parents’ deferred retirement accounts for example it’s a bit complicated — you could take all the money at once or you can do it over 10 years but you have to pay the taxes on it once you pull it out.

Don’t touch it. Other parent and sibling are so nasty and think it’s theirs. I regularly offer it to them to shut them up.

So much of the money we've saved to now can't be used until we are a certain age. But, when you inherit money, you can really just use it whenever??

This must be the case and may be a dumb question, but I am in shock, I think.