Deal with inheritance issues before they happen.
Fortunately, these problems can be solved—or even avoided completely; communication is key. Discuss with your parents ahead of time what they plan to do with their wealth. They need to be very clear where they want their possessions to go once they are gone.

Figure out what you owe.
Don’t spend any money until you find out whether or not you could owe any. While you won’t pay an estate tax, you could end up owing an inheritance tax if you live in a state that levies one. “Some states have inheritance taxes assessed on the heir,” says Martin Shenkman, author of Inherit More. “Budget this cost before you plan how you will spend.”

Give yourself time to think.
What’s the first thing you should do if you receive a windfall? Nothing, say experts! Most advise waiting anywhere from six months to a year before even touching the money. Because the temptation is so great when the money is received, we’re not always in control of how we spend. “We see most people fritter away too much of an inheritance,” says Shenkman.

And while buying a home or investing in a mutual fund might be the right move for many people, it’s not always the answer. “When my grandmother left me money, I felt like I had to do something lasting and important, like go back to school,” says Lauren, 26. “But my financial advisor told me to put the money aside for a year. When I had time to think about it, I realized that what my grandma would have really wanted was for me to go on an adventure. I quit my job and traveled the world. It was the greatest experience of my life.”