I inherited money and don't know what to do — where do I start?

General advice only · AFSL 222640 · Global Mutual Funds Pty Ltd

The direct answer

Start by doing nothing rushed. Park the money in a high-interest savings account or offset account while you get organised. Australia has no inheritance tax, but capital gains tax can apply when you sell inherited assets, and super death benefits can be taxed if you were not a financial dependant. Clear expensive debt first, then plan.

What it depends on

The full answer depends on your specific circumstances. Here’s what matters.

What you inherited

Cash is simple. Shares and property carry cost bases that affect capital gains tax when sold — special rules apply to the deceased's main residence, including a two-year window in many cases. Super death benefits paid to non-dependants (such as adult children) may have tax withheld on the taxable component.

Your existing debts and goals

Paying off credit cards and personal loans is often a guaranteed "return" equal to their interest rate. Offsetting a home loan can be similarly effective. Investing comes after the high-interest debt is gone.

Pressure from others

Inheritances attract unsolicited advice and scams. Only deal with professionals you can verify on ASIC's Financial Adviser Register or the Tax Practitioners Board register.

The last 10%

What a qualified professional can add

The answer above covers the general position. Here’s where professional judgement — applied to YOUR specific situation — makes the difference.

Calculating the tax consequences of keeping versus selling inherited property or shares
Deciding between super contributions, debt reduction and investing given your contribution caps and age
Coordinating with the estate's executor, lawyer and accountant so nothing is missed

Questions to ask before you engage one

If you decide to engage a professional, these questions help you evaluate whether they’re right for your situation.

What is the cost base of the assets I inherited, and when does CGT apply?

Should any of this go into super, and what are my contribution caps?

How are you paid, and do you earn anything from the products you recommend?

What would you do in the first 90 days, and why?

Your next step

Put the funds somewhere safe and accessible, list every asset and debt you have, and request the estate's tax paperwork from the executor before making any big decisions.

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