Inheriting Generational Wealth: A Guide for Beneficiaries

July 21, 2023

By cdarmody on July 21, 2023

Inheriting generational wealth can be a life-changing event. An inheritance can provide financial security and open new opportunities – and can come with its own set of challenges and responsibilities, which can take some beneficiaries by surprise.  

Each person’s experience inheriting wealth is different, and the variables can affect the questions you need to ask or the types of advisors you may need. What are the circumstances and timeline for your inheritable? Oftentimes it’s not a quick or immediate transfer. What kinds of assets will you inherit? With a large inheritance, odds are that it will be in a form other than cash.  

Here are some tips to help you navigate this complex process: 

  • Take Time to Process: Inheriting wealth can be overwhelming. Before making any major decisions, take time to process your emotions and understand the responsibilities that come with managing wealth. 
  • Assemble a Team of Professionals: Managing significant wealth often requires a team of professionals, including financial advisors, accountants, and attorneys. They can provide guidance on investment strategies, tax planning, estate planning, and legal issues. 
  • Understand Your Financial Position: Get a clear picture of your assets, liabilities, income, and expenses. This will help you make informed decisions about investing, spending, and giving. 
  • Create a Financial Plan: Develop a comprehensive financial plan that aligns with your goals and values. This should include investment strategies, retirement planning, estate planning, and philanthropy. 
  • Invest Wisely and Preserve Your Wealth: Diversify your investments to spread risk and potentially increase returns. Consider strategies to preserve your wealth for future generations, like setting up trusts or making strategic gifts to family members. 
  • Give Back: Philanthropy can be a rewarding way to use your wealth. Consider establishing a charitable foundation or donor-advised fund, or making direct gifts to causes you care about. 
  • Educate the Next Generation: Teach younger family members about financial management, investing, and the responsibilities of wealth. This can help ensure that future generations are prepared to manage the family wealth responsibly. 

Because individual circumstances vary, be sure to talk to your advisor before making any investment or planning decisions. 


The opinions and analyses expressed in the article are based on RMB Capital Management, LLC's ("RMB Capital") research and professional experience. The information and data in this article do not constitute legal, tax, accounting, investment or other professional advice. Investors should consult with their trusted professionals prior to taking any action. 

Was this article helpful?

Tags for this article: