How should I invest my child inheritance?

How to Invest an Inheritance

1. Good Growth Stock Mutual Funds. Invest in good growth stock mutual funds through an individual or joint taxable brokerage account.
2. Real Estate Bought With Cash. Depending on the size of your inheritance, you may be able to purchase a rental property outright.

Are inheritances considered marital property?

If you received an inheritance before marriage, you get credit for the balance of the inheritance you had on the date of marriage. If you received your inheritance during the marriage, then you can exclude the value of the inheritance you have left on the date of separation from your net family property.

What should I do with the money from my inheritance?

If the Will says you can exclude interest income earned from the inheritance (which most Will’s drafted by a lawyer do), keep the inheritance and interest earnings in a separate account. Do not invest the money you inherited into a home you will be living in with your spouse (this includes not paying down the mortgage).

Can a financial advisor help you invest your inheritance?

A financial advisor can help separate emotion from the investment process and help you make sound investment decisions.

How can I protect my inheritance from separation?

If you want to use the inheritance, rather than keeping it in an account in your sole name, you should strongly consider entering into a cohabitation contract which can help you protect your inheritance with a bit more flexibility.

Can you pay off your mortgage with an inheritance?

While paying off high-interest credit card debt is a no-brainer, paying off your mortgage with an inheritance requires an analysis. Consider the emotional and financial issues when examining whether to pay off your mortgage with an inheritance. If it gives you peace of mind to pay down your mortgage, then you have the answer.