Many Millennials Don’t Need Financial Advice on an Inheritance

Financial advice on an inheritance often is more about support than complex financial decisions

Do you really need financial advice on an inheritance?

You’ve unexpectedly received money from a family member. Or you anticipate that you will in the months ahead. Does that mean you should search for a financial advisor?

Maybe. But you shouldn’t assume that you need professional financial advice. In personal finance, simple approaches often work best for most people. So with the right dose of knowledge and clarity, you may find that you can proceed on your own.

First, though, let’s explore whether you’re a Millennial who needs financial advice on an inheritance.

What Counts as an Inheritance?

Let’s start with the dictionary definition. To inherit means to “receive money, property, or title as an heir at the death of the previous holder.”

In other words, as Trust & Will writes, “an inheritance is the… assets you might receive from a loved one when they pass away.”

For example, you might inherit:

• Investments (including through the very common “Inherited IRA”)
• Cash
• Real property, such as a family vacation house
• Personal property, such as a diamond ring or a family heirloom

You may already understand what the term “inheritance” means. The specifics within the definition matter, though. Note that an inheritance doesn’t necessarily entail a large sum of money. Inheritances come in all sizes, and many different forms.

And this nuance ties back to the question about financial advice on an inheritance.

Sure, if you inherit shares in a privately-held company, then you may want to work with a financial advisor. If you inherit three properties, then you may want to seek professional tax advice.

But remember: you may have the option to keep your inheritance decisions straightforward.

What’s Unique About Millennials Inheriting Money

By 2030, every Baby Boomer will be at least 65 years old.

This is a generation that includes about 73 million people, according to the most recent U.S. Census data. Their children – us, Millennials – may face new financial situations as a result.

For instance, a Baby Boomer in your life may want to contribute to a 529 college savings plan for their grandchild. Or you may have parents who need help with elder care. And, at some point, they may want to discuss how they plan to handle an inheritance for you.

To be clear, inheritances remain relatively uncommon.

CNBC recently reported on a Federal Reserve Bank of Boston study about inheritances. The study shows that one-third of white families receive an inheritance. Only one in every 10 Black families receive an inheritance. And more than half of all inheritances amount to less than $50,000.

Even so, this data underscores a new dynamic. For past generations, inheritances were even more rare. But Baby Boomers now stand to pass down as much as $68 trillion as a group.

That’s what makes Millennials’ inheritance dynamic unique. And the primary reason that so many of us want financial advice on an inheritance.

Millennials Face New Financial Decisions When Inheriting Money

Many Millennials experienced a rough start to their financial lives.

The Great Recession from 2007-09 created a challenging job market for young adults. Many Millennials graduated with significant student loan debt. And the cost of living in some cities, including for starter homes, served as another obstacle.

For some Millennials, these financial challenges still exist. Others face new burdens, such as inflation and high child care costs.

A potential inheritance, then, gives our generation both a sense of opportunity and stress.

On the one hand, an inheritance can help to ease existing financial challenges. No matter the amount, Millennials would welcome extra help with a down payment or daycare bills.

But that same inheritance opportunity often creates anxiety, too. No one wants to make a mistake. No one wants to regret how they used the money.

In short, no one wants to waste the opportunity that an inheritance presents.

You may find that some of your choices, though, are new to you. How much of the inheritance should you save in the bank? How much should you invest, and where should you invest it?

Professional financial advice can help with these questions. But this unique opportunity does not mean that your finances need to become more complicated overall.

What Does Professional Financial Advice Include?

You may know that financial advisors exist. And you may believe that financial planning makes sense.

But many Millennials have never worked with a financial advisor.

So before you consider financial advice on an inheritance, let’s briefly talk about financial planning in general.

The Benefits of a Certified Financial Planner

When you seek out a financial advisor, you should look for a Certified Financial Planner. Here’s why you should demand a CFP:

• It’s the most rigorous credential in the profession
• All CFPs must always work in your best interest (known as a “fiduciary”)
• CFPs have studied a wide variety of personal finance topics, not only investing.

An Example of a Comprehensive Financial Planning Process

A comprehensive financial planning process should touch on all aspects of your finances.

You may mainly reach out for financial advice on an inheritance, sure. But you also should receive guidance on these topics, among others:

• Spending
• Savings
• Debt
• Housing
• Investments
• Retirement
• College planning
• Tax strategies
• Insurance
• Estate planning
• Relationship finances
• Child-related finances
• Travel finances

After a successful planning process, you should feel calm and confident about your entire financial picture.

So if you’re taking this step, it’s worth the effort to make sure you find a great financial advisor.

What Financial Advice on an Inheritance May Look Like For You

Financial planning around an inheritance typically consists of three main categories.

1. Time-sensitive decisions
2. Personal (qualitative) considerations
3. Optimal financial tactics

And this is the order in which you likely want to approach these topics, too. So let’s review each category in turn:

Time-sensitive decisions. Most inheritance decisions benefit from time. In some cases, though, you may face deadlines. A legal process may require that you act by a certain date. Or you may need to withdraw from or close an account soon.

Financial advice on an inheritance should address these time-sensitive decisions first. If nothing else, both you and your financial advisor should be aware of any deadlines. Your advisor should make sure that you review qualitative and quantitative factors as part of any quick decision.

But ultimately, you need to make sure that you don’t miss any opportunities or responsibilities.

Personal (qualitative) considerations. Personal finance may revolve around numbers, but seldom does a single “right” answer exist. This idea applies to an inheritance, too.

Millennials can use this money in so many different ways. Before you worry about tax strategies or investment options, consider the opportunity itself:

• How might a lump sum of money change your life for the better?
• How might you want to honor the person who made the inheritance possible?
• In what aspects of your finances have you long wanted to make more progress?

The best financial tactics in the world won’t feel good if you regret how you used the money. So please spend some time thinking about what this money can mean for you.

Optimal financial tactics. You may find that managing an inheritance isn’t as complex as you assume. This is why not every Millennial necessarily needs to work with a financial advisor.

Still, inheritance tasks definitely can feel overwhelming, even the smallest steps. It’s a lot of money and an emotional time. And making sound financial decisions is an important part of the process.

For example, your inheritance may come in the form of an inherited IRA. Inherited IRAs require that you withdraw all funds within a 10-year period. So you could withdraw all of the money this year. You could spread out the withdrawals evenly over the 10 years. Or any other number of combinations.

These different decisions have tax implications. You may not need financial advice on an inheritance, per se. But you may value a sounding board as you review your options. That way, you’re less likely to worry that you made a mistake.

Three Financial Planning Companies That Specialize in Inheritance Questions

Most Certified Financial Planners® should be able to address basic inheritance questions.

But it’s critical to note that most financial advisors don’t specialize in inheritance planning. So if you’re preparing to receive an inheritance, you may want to work with an advisor who does.

With that said, in my opinion, these are 3 great sources of financial advice on an inheritance for 2025:

#1: Deliberate Finances (New Orleans, LA)

Ryan Frailich, CFP®, is the founder of Deliberate Finances. Ryan’s work aims to “help people in their 30’s and 40’s bring clarity to their financial dreams.” In recent years, Deliberate Finances has focused in particular on younger inheritors.

#2: Sunnybranch Wealth (Portland, OR)

Katherine Fox, CFP®, is the founder of Sunnybranch Wealth. She is a “member of a philanthropic family” that has “successfully passed wealth down across generations.” She built her company to “support current and future inheritors as they navigate the inheritance process.”

#3: Illumint by Kevin Mahoney CFP® (Washington, DC)

That’s right, Illumint specializes in Millennial inheritance planning, too!

I admit feeling a little awkward including my company in this list. But it’s hard for most Millennials to find a financial advisor with expertise in these specific questions. So I’m proud to offer these services.I’ve encountered too many people over the years who feel overwhelmed by inheritance decisions.

I want more Millennials to feel like they have options when this unique financial and emotional time arises.

_{(Disclaimer: This is not an exhaustive list of where to receive financial advice on an inheritance. This list reflects my opinion and is not a testimonial or endorsement.)}

My Most Common Inheritance Advice

Every financial planning conversation has nuances. People have slightly different worries. They want to use their money in slightly different ways.

Even so, certain themes repeat themselves.

With inheritances, most Millennials that I chat with often feel a weight on their shoulders.

• They’re sad about the circumstances under which the inheritance arrived.
• They’re concerned that they won’t manage the money well enough.
• And they’re stressed about how to make the most of the financial opportunity.

For these reasons, my most common inheritance advice is to just take a breath. Give yourself a little bit of mental space to think through your options.

As long as inheritors ask questions promptly, they rarely need to make decisions immediately. They also don’t often need to make all-or-nothing decisions, either.

For example, let’s assume that you’re thinking of investing much of your inheritance. You don’t need to invest the full amount at once. So let’s start small. Let’s set up the appropriate account and identify an initial amount. That progress feels nice. And it also doesn’t prevent you from changing how to proceed.

In Summary: How to Decide Whether to Seek Financial Advice on an Inheritance

When you receive an inheritance, you may assume that you must now find a financial advisor. That comes with the territory, right?

Of course, it can. And in some circumstances, it should. You certainly shouldn’t hesitate to get professional financial advice. Even if you just want someone to talk to about your financial changes.

But if you remember that one of your first steps is to pause, then also remember the second step: simplicity.

With money, most people are best off with straightforward financial strategies. Are you typically on top of your finances, even if they aren’t “sophisticated”? Are you comfortable with personal finance 101?

Then even with a large amount of money, you likely can make these decisions on your own. Financial advice on an inheritance is a plus, but you can make that decision, too.

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Recommended Money Reads for Millennials

If you liked this article, you may also want to check out:

• Millennials, Here’s What To Do With an Inheritance in 2025
• The 10 Best Financial Advisors for Millennials in the U.S. in 2025

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About Kevin Mahoney, CFP®

Hi, I’m Kevin. I’m the founder of Illumint and a financial advisor in Washington, DC. I specialize in financial planning for Millennials like you. As a Millennial father and Certified Financial Planner™, I empower our peers to invest with confidence and flexibility. If you’re new to Illumint, I’m glad you’re here – you now have access to free personal finance tips written specifically for Millennial parents. I encourage you to read, watch, or listen to the ideas I share about exchanging your money for memories with your kids. And then when you’re ready, please send me your thoughts & questions!