How Do I Manage This Much Money?
How Do I Manage This Much Money?
Moneywise Fri, April 3, 2026
My mom was much richer than I realized, and left me more than I could have imagined. How do I manage this much money? During the next 20 years or so, Americans will inherit an estimated $105 trillion as older Americans pass down their accumulated wealth to younger generations, in a phenomenon that has been dubbed the Great Wealth Transfer (1). That means there will be a lot of people who are surprised — even if pleasantly so — to be inheriting money and unsure about how best to manage it.
Jeannie’s mother left her a substantial legacy. While her family was comfortable during her childhood, she had no idea that her parents were scrupulous savers and investors. Now, in addition to her childhood home, which is worth approximately $1.5 million, she has inherited a portfolio of investments worth $6 million.
Jeannie is shocked to find that her mother was so wealthy — and that she now has to manage real wealth for the first time in her life. While Jeannie was unprepared for her legacy, she also doesn’t want to waste this opportunity to improve her life now and in the future.
Here’s what Jeannie could have done to avoid this situation in the first place, and what to do if you find yourself in a similar place.
How To Have ‘The Talk’ With Your Parents
This problematic situation stems from a lack of communication around estate planning.
It’s a pretty common issue, too. In fact, the 2025 Family and Finance Study by Fidelity found that while 97% of families acknowledge the importance of talking about estate planning, almost half of those asked hadn’t actually had the conversation yet (2).
However, although so many older Americans may avoid talking about their estate plans, the adult children of this cohort are equally responsible for opening the conversation. Even if it may be awkward, it helps to frame the discussion as your desire to help them distribute their estate the way they want.
In other words, Jeannie and her mother might have avoided this situation altogether if they had sat down and had the conversation beforehand.
It’s also important to know that it doesn’t have to be a one-and-done talk. The conversation can come as part of a larger discussion about health care, a parent’s decision about aging in place or moving to assisted living and their last wishes for legacy planning.
There are several recommended approaches to carrying out this kind of conversation. For example, The New York Times recommends discussing a parent’s current health, medical history and living arrangements, while also designating a point person in the family to carry out their wishes (3).
Elsewhere, SSHK Law recommends that if your parents hesitate or avoid the conversation about end-of-life wishes, you can reassure them that you want to honor their choices, not take control of their estate (4).
In this way, by breaking up the conversation into a series of smaller discussions, you can help ease anxiety and tension.
Managing A Windfall With Professional Advice
Now that Jeannie has inherited her legacy, she has to start looking forward into the future rather than thinking about the past. In this respect, she is at least lucky that she has the time to make thoughtful choices about how to use the money her mother left behind.
She Can Also Seek Out Advice.
Whenever your financial situation changes substantively, as it did for Jeannie, it’s always a good idea to consult a professional. A financial advisor can guide you through some of the best ways to invest your inheritance to meet your goals — and advise you on the tax and legal implications.
For example, income from certain assets could bump you into a higher tax bracket. Additionally, an inherited IRA might be subject to the 10-year rule, meaning you have to withdraw all the funds within 10 years of the original account owner’s death (5).
To Read More:https://www.yahoo.com/finance/markets/articles/mom-much-richer-realized-left-120000825.html