Receiving an inheritance can be both a blessing and a challenge. For many in Greenwood, Indiana, it comes during a time of grief—when emotions are high and financial decisions feel overwhelming. Too often, heirs make quick choices with money, real estate, or investments that lead to regret later.
At Vick Law, 3209 W. Smith Valley Rd., Suite 113, Greenwood, IN 46142, we work with families every day to help them protect, manage, and plan around inheritances. Whether it’s cash, a family home, or complex business interests, our goal is to help you avoid costly mistakes and build a secure future.
Take Time Before Making Big Decisions
Your first instinct may be to spend, invest, or give away part of your inheritance. But pressing pause—especially if the inheritance follows the loss of a loved one—can make all the difference. Give yourself weeks, or even months, to understand exactly what you’ve inherited and what it means for your long-term financial health.
Understand the Tax Implications
Not all inheritances are tax-free. Here’s what to know:
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State inheritance taxes. While Indiana repealed its inheritance tax in 2013, other states still impose one. If your loved one lived elsewhere, state law may apply.
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Retirement accounts. Inherited IRAs and 401(k)s have specific distribution rules, and withdrawals may be taxable.
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Stocks and real estate. Most assets receive a “step-up” in cost basis to their value at the date of death, which can reduce capital gains taxes if sold soon after.
Tax laws are complicated, which is why professional guidance is essential before making moves with inherited assets.
Build a Financial Plan for the Inheritance
Instead of treating inheritance as “extra money,” use it to strengthen your long-term financial position. A thoughtful plan may include:
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Paying off high-interest debt
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Building or replenishing your emergency fund
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Boosting retirement accounts
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Funding education or career advancement
Working with an estate planning attorney and financial advisor ensures your decisions align with your goals and protect your future.
Be Strategic with Real Estate or Business Interests
If you inherit a home, land, or commercial property, you’ll need to decide whether to keep, rent, or sell it. Each option comes with costs, tax implications, and management responsibilities.
For business interests, understand your rights, whether buyouts are available, and what role—if any—you want to play in ongoing operations. Getting a professional valuation is particularly important when multiple heirs are involved.
Avoid Common Mistakes
Some of the biggest pitfalls we see include:
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Spending the inheritance too quickly
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Putting all of it into one investment or business
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Failing to update your own estate plan to reflect new wealth
An inheritance should be a tool to build long-term stability—not a source of future stress. By pausing, planning, and getting professional advice, you can honor your loved one’s legacy and protect your own.
How Vick Law Can Help
At Vick Law in Greenwood, we guide clients through every stage of inheritance planning. From understanding tax consequences to updating your will or creating a trust, we’ll make sure your plan reflects your wishes and protects your family.
If you’ve recently received an inheritance, don’t go it alone. Let our estate planning and elder law team help you make smart decisions now—so your family is secure for years to come.
Call Vick Law at (317) 884-3133 or visit us at 3209 W. Smith Valley Rd., Suite 113, Greenwood, IN 46142 to schedule a consultation. You can also schedule a plan online here.
Reference: Merrill Lynch “Q&A: How can I make the most of my inheritance?”
