What to Do When You Receive an Inheritance Check
Receiving a check from an inheritance can be a bittersweet experience, bringing both joy and the challenge of managing newfound funds. If you're suddenly holding a check for over $10,000, you might face hurdles, especially if you rely on mobile banking for deposits. As observed by many, including a colleague at Kiplinger, larger checks often require a more traditional approach to banking.
Navigating Bank Policies
It's essential to understand the banking protocols surrounding large checks. Many banks will not accept mobile deposits for checks over $10,000; instead, you might have to either visit a branch in person or utilize other methods. If visiting a branch isn't feasible, a common solution is to mail your check. Opt for certified mail to ensure tracking and protection during transit, but consult your bank for specific solutions tailored to your scenario.
Consider Partnerships and Alternatives
Some banks have partnered with local credit unions or branches that might be more accessible to you, allowing you to deposit your check without traveling far. Alternatively, an executor of the will might be able to wire the funds directly, sidestepping bank-imposed deposit limits altogether.
Immediate Financial Strategies
Once your check is deposited, it’s time to strategize your next steps. Many experts advocate for placing this money into a high-yield savings account, money market account, or a short-term CD. Online banks often offer better rates than traditional banks, making them an attractive option. For instance, Newtek Bank currently advertises an APY of 4.20% with no fees, offering a safe place for your funds while you assess your options.
Creating a Financial Plan
Your inheritance isn't just extra money—it's a resource that can enhance your life if used wisely. Consulting a reputable financial advisor can help you set tangible goals for this new wealth. Look for someone who prioritizes your interests (fiduciary), demonstrates proactive financial planning, and offers a holistic approach to managing your wealth. Their expertise can alleviate the stress of navigating your new financial landscape.
Finding Support During Difficult Times
The process of handling an inheritance is often compounded by emotional stress, and it can feel overwhelming. Remember, you’re not alone. Reach out to family or friends who can offer both emotional and practical support during this process. By taking one step at a time and consulting with professionals, you can honor your loved one’s legacy while also securing your financial future.
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