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Received an inheritance? It may create more problems than it solves.

A person or family could actually end up with less wealth after an inheritance, according to Chase News & Stories reports in “How to make sure your inheritance is a boon, not a bust.”

An inheritance doesn’t always grow a family’s wealth. The biggest problem is overspending, especially on unnecessary things. While it might be fine to splurge on one or two things, spending can quickly snowball until there is nothing left. There is always something more that can be purchased and heirs who are not careful keep purchasing those somethings.

The best way to prevent this is to plan ahead.

Talk to your older relatives about what inheritance you might receive from their estate plans and ask for guidance in wealth management. Your relatives who have wealth can teach you how they maintained that wealth.

If you do not know ahead of time that you will receive a large inheritance and get one suddenly, then you can still make plans, if you are patient. Do not do anything with the inheritance for at least six months.

It might be a good time to seek professional financial advice.

Reference: Chase News & Stories (Nov. 23, 2016) “How to make sure your inheritance is a boon, not a bust.”

For more information on asset preservation and estate planning, please visit my estate planning website.

Mr. Amoruso concentrates his practice on Elder Law, Comprehensive Estate Planning, Asset Preservation, Estate Administration and Guardianship.