Sadly, my husband lost his father last year and his mother several years before. We recently received our portion of the estate (he is one of several siblings) and we have had it in our checking account for several months because we don't know what to do with it...
Here is our financial background. We have three kids - the oldest will start college in 7 years.
We own our house, but have a large mortgage payment because of the real estate costs in the area we live - there are several expensive home improvements that would make sense ie finishing the basement, getting a new deck, etc.
We paid cash for our cars both of which have about 50,000 miles on them.
We have done a decent job of saving for retirement.
We have no debt other than our mortgage and have saved some though not nearly what we will need to pay for our kids to go to college (esp if they go out of state or to a private college)
Prior to receiving this money we had a 6 month emergency fund.
I make some money each year doing freelance, but plan to have a pt job starting a year from next fall when my youngest begins kinder.
Thanks if you are still reading - what would you do with inherited money in this sort of situation? Save for retirement or college? Or make a home improvement? It seems stupid to have it sitting in our checking account.