When an Inheritance Arrives: The Money, The Emotions and What Happens Next
“I would give every cent back if it meant having Mum here.”
Those words have stayed with me.
Over the years at JBS Financial Strategists, we’ve helped many clients navigate the practical side of receiving an inheritance. But what often surprises people is that inheriting money isn’t usually about money at all.
It’s about grief.
It’s about responsibility.
And for many people, it’s about guilt.
At a time when Australia is experiencing one of the largest intergenerational wealth transfers in history, these conversations are becoming more common. Research from the Productivity Commission shows that wealth transfers have more than doubled since 2002 and could increase fourfold by 2050. Meanwhile, estimates suggest between $3.5 trillion and $5.4 trillion will pass between generations over the coming decades. Australians are also increasingly viewing inheritances as important to their financial future, with Finder research showing around 41% of Australians expect to receive one.
Yet despite the financial significance, very few people are prepared for the emotional impact.
“I Don’t Feel Like I Earned It”
Recently, I sat with a client, let’s call her Sarah.
Sarah had lost her father after a long illness. Alongside her grief came a significant inheritance.
Instead of excitement, she felt uncomfortable.
“Dad worked his whole life for this. I don’t feel like I earned it.”
It’s a sentiment we hear often.
Many Australians experience what psychologists call inheritance guilt. They feel guilty benefiting from someone’s death. Others worry about spending the money “the wrong way” or feel pressure to honour the sacrifice that created the wealth in the first place.
Sarah’s inheritance sat in a bank account for nearly eighteen months because she was afraid of making a mistake.
The reality?
Doing nothing is also a decision.
After working through a plan together, Sarah used part of the inheritance to strengthen her retirement savings, help her children with education costs, and establish an investment portfolio that reflected her father’s values of long-term financial security.
The money went from being a source of anxiety to a source of purpose.
What Should You Do When You Receive an Inheritance?
One of the biggest mistakes we see is people making large financial decisions too quickly.
Grief and major financial decisions rarely mix well.
Whether the inheritance is $50,000 or $5 million, our advice is usually the same:
- Take a breath.
- Avoid major spending decisions immediately.
- Understand the tax and estate implications.
- Review your own financial goals.
- Seek professional advice before making significant changes.
An inheritance should enhance your financial future, not derail it.
“Mum Wanted Me to Enjoy It”
Another client, David, inherited money from his mother after she passed away.
For years he refused to spend any of it.
Every purchase felt wrong.
During one conversation, he shared something that changed his perspective.
“Mum worked hard so I could have opportunities she never had. She’d be disappointed if I locked it away forever.”
That single realisation allowed David to use part of the inheritance for something meaningful: taking his family on a trip he’d always dreamed about.
Not extravagance.
Not recklessness.
Just permission to enjoy part of the gift while also preserving his long-term financial security.
The Money Often Represents More Than Wealth
Sometimes an inheritance represents family values.
Sometimes it’s a symbol of sacrifice.
Sometimes it’s a final expression of love.
One widow we worked with inherited funds from her late husband and initially wanted to gift large amounts to her children immediately.
“I want them to benefit now, not when I’m gone.”
After careful planning, she realised she could help her children while still protecting her own financial independence.
The result was better outcomes for everyone.
That’s where quality advice makes a difference.
At JBS, we don’t just look at investment options. We help clients navigate the emotional, family and financial complexities that come with life-changing events.
Why Consumer Sentiment Matters
Today’s economic environment makes these decisions even harder.
Cost of living pressures, housing affordability challenges and uncertainty about retirement mean that inheriting money can feel both like an opportunity and a burden.
Many people feel pressure to make the “perfect” decision.
The truth is there usually isn’t a perfect decision.
There is simply a well-considered one.
That’s why having a structured financial plan is so important. It helps transform uncertainty into confidence.
A Gift, Not a Burden
Receiving an inheritance is often one of life’s most emotionally complex financial events.
It’s okay to feel grateful.
It’s okay to feel sad.
It’s okay to feel guilty.
Those feelings are normal.
But eventually, the greatest way to honour the person who left the inheritance may not be to preserve every dollar untouched.
It may be to use that gift thoughtfully, intentionally and in a way that supports your future and the people you care about.
At JBS Financial Strategists, we’ve helped many families navigate inheritances, estate planning and intergenerational wealth transfer with confidence and clarity.
If you’ve recently received an inheritance, or expect to receive one in the future, we’d be happy to have a conversation about your options and help you make informed decisions that align with your values and goals.
After all, an inheritance isn’t just about what you’ve received. It’s about what you choose to do with it next.
Our team at JBS are ready to help you navigate the practical side of receiving an inheritance. Reach out to our team here.