While grieving over the loss of a loved one can be extremely tough, the addition of a controversial will can make the entire process even more devastating.
For example, say you recently lost your father and shortly after the funeral, you discovered that you’re the sole beneficiary of his estate, which includes his house, his car and more than $500,000 in savings. Meanwhile, your three older siblings are angry and confused, and the backlash you’ve received is too much to ignore.
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While you’re shocked that your dad left everything to you, you’re also not exactly surprised. After all, you were the only sibling that maintained contact and cared for your aging, emotionally distant dad in his final years.
Your siblings, on the other hand, had always assumed your father would split up the will evenly among his four children. And since the estate is now in your control, that’s exactly what they expect you to do: divide the estate equally so that everyone gets their fair share.
But you have your concerns, and ultimately you decided not to distribute the estate’s assets among your brothers and sisters, at least for now. And you have your reasons — one brother borrowed money from your dad and never paid it back. Another had cut your dad off when he refused to co-sign a loan, and your sister once forged your dad’s signature on an insurance document.
One sibling has hinted at taking legal action, but quickly dropped that idea after seeing the paperwork involved. Now, you’re caught between guilt and loyalty, wondering if honoring your dad’s final decision makes you selfish.
Should you split the inheritance?
There are two things for you to consider — one legal and one ethical. Legally, if someone leaves behind a valid will, that document typically determines who inherits what. And since your father updated his will and named you as the sole beneficiary, the law is likely on your side.
There are a few cases in which a will can be contested, and these can vary by state (1). In general, a will can be contested if:
- The deceased lacked the mental capacity to sign the will before they passed away
- The deceased was under duress or tricked into signing the will
- There is suspicion that the deceased’s signature was forged
- Another will exists, especially if the other will is newer. In most cases, the most recent will is the only one that is valid
Based on the fact that your siblings dropped the idea of legal action, you’re likely in the clear, legally speaking. But it’s always a good idea to consult with an estate or probate lawyer to cover your bases when an inheritance is questioned.
Now, on the ethical side, sharing the inheritance with your siblings might seem like the right thing to do. But before you cave into their demands, try putting yourself in your father’s shoes. Say you wrote a will leaving your estate to your favorite niece while leaving out her brother, who is a rude person and once stole money from you a long time ago. Would you want your nephew to get a share of your estate? Probably not.
Your father made his final wishes clear, and you can honor his wishes by simply following them. However, you must also consider what keeping the inheritance will do to your relationship with your siblings. If you refuse to share the inheritance, those relationships will likely be strained, if not completely severed.
It’s also worth considering the financial implications of splitting the inheritance. In order to split the value of the house and the car, you’ll need to sell those assets. And depending on your current living situation, you may decide that living in the inherited house is what’s best for you financially.
Read more: I’m almost 50 and have nothing saved for retirement — what now? Don’t panic. These 6 easy steps can help you turn things around
How to navigate inherited finances
Coming into an unexpected inheritance, especially one tied to complicated family dynamics, can be emotionally draining. But it’s important to take a step back and approach the financial side with a clear head. Here’s how to navigate the finances in an inheritance.
Secure the funds and understand what’s been inherited
Before you do anything else, make sure the estate has cleared probate and that you legally have access to the funds and/or property in it. Also, check for any unpaid debts or taxes attached to the estate. In most cases, the estate — not the beneficiary — is responsible for those, but it’s important to confirm this before making any financial moves.
Once the estate is settled, consider placing the money in a high-yield savings account or a short-term certificate of deposit.
Talk to a financial advisor or tax professional
Inheritances can come with unexpected tax implications, especially if they include investment accounts or rental property. An advisor can help you reduce your tax burden and make a plan for the funds. Your best bet may be a fiduciary financial advisor, who is legally required to act in your best interest.
Wait before making big decisions
The first rule of inheritance planning should be to avoid rushing into any decisions. Instead, wait a few months before making any major decisions, like quitting your job, investing a large sum or giving money to others. Emotions can cloud your judgment, so take a beat and give yourself time to make the right choice.
Figure out what to do with inherited property
If you’ve inherited a home, you’ll need to decide whether you want to live in it, rent it or sell it. Before you make that decision, consider the cost of taxes and maintaining the house. Home insurance rates are on the rise, and all of the costs that come with managing the home might set you back more than you realize.
Set boundaries with family
If other relatives feel they were “cut out” of the will, tensions can escalate. You may be under no legal obligation to share the inheritance, but if you choose to, do it intentionally and not out of guilt. Set clear boundaries about what you are or aren’t willing to give, and avoid getting pressured into giving more than you’re comfortable with.
Inherited money can be a powerful tool for reaching financial goals — if you manage it wisely. Take your time, get expert advice and make choices that support your long-term goals.
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This article originally appeared on Moneywise.com under the title: My dad died and left everything to me — and my 3 siblings say I’m selfish if I don’t give them each a cut. What do I do?
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.