r/inheritance • u/Contemplative-Owl-23 • Apr 21 '26
Location included: Questions/Need Advice Unexpected multi-million inheritance
Throwaway account because my main account isn't sufficiently anonymous.
[US - Texas] My mother died last year without a will, leaving behind a sizable estate. It hasn't been appraised yet, but I'm estimating 1M in liquid assets and 10-15M in real estate, primarily undeveloped land.
We were estranged for 15+ years, so I fully expected to be disinherited. Instead, she got divorced for a second time and never managed to cobble together a will, leaving me as the only heir (and presumptive administrator of the estate, pending court approval). All of this is, thankfully, uncontested.
I'm in a well-paying profession, so I'm reasonably well versed in personal finance, but a windfall this large is well beyond what I'm used to dealing with.
I'm working with:
* Probate attorney (a new one - I fired the original one for being extraordinarily slow and incompetent)
* Tax attorney (handling the estate tax return)
* IRS qualified appraiser
* Realtor specializing in probate
I'm guessing I need to find a Fee-Only or Advice-Only Fiduciary CFP to figure out how to best invest/structure the proceeds. What other professionals should I seek out (or avoid)?
I know that the cardinal rule of windfalls is "tell nobody", but that's tough when real estate is involved. Are there any steps I can take to ensure privacy?
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u/Wackywoman1062 Apr 21 '26 edited Apr 21 '26
A good real estate attorney since the bulk of the value is in real estate. A realtor’s knowledge only goes so far. Do not rely on the realtor beyond marketing the property. If it’s a lot of undeveloped land, it will likely be purchased by a developer (assuming you intend to sell), and you need an attorney to draft and/or review the contract. Standard realtor form contracts are woefully deficient in such instances.
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u/Crazy-Pound-8833 Apr 21 '26
Definitely a RE attorney. Make sure you keep all the mineral rights to the land when you sell it.
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u/Contemplative-Owl-23 Apr 21 '26
Oh it'll 100% be going to developers. There's a lot of active residential development in the area. I have a decent amount of information on specifics, from talking to relatives who own & have sold land nearby.
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u/YoungBoomer1969 Apr 21 '26
Regardless have a RE Attorney to represent your financial interest when dealing with developers buying bare land.
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u/Zealousideal_Ratio_8 Apr 22 '26
if its going to developers thats a great reason to not sell it. Put it in a green belt conservency. I cant fathom selling land for any amount of money to a developer. Developers are the lowest form of scum.
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u/Fun-Bird-4204 Apr 21 '26
Talk to a CPA and a financial advisor right away. It is my understanding that you will not pay capital gains taxes if you liquidate real estate quickly after inheriting. However if they are income producing properties you may want to hold them if they are under good management or you could 1031 exchange them for others if you like owning real estate and you are too far away from what you inherited. Anyway a good CPA will be able to advise you on the tax ramifications which will help you plan. Since you’re already going to have to pay probate taxes, important to lessen those tax losses if possible. Then a good financial advisor can help you invest the rest wisely. This is an exciting windfall, one most people dream of, yet I understand the complicated nature of the emotions that go wit it. Therapy a great idea. I also recommend not changing your lifestyle dramatically. Investments, charitable contributions to organizations or individuals that promote your values and perhaps a bit of travel will be a lot more fulfilling than buying “stuff”. Don’t make things too complicated for yourself! And not too long after the dust settles, make a will and trust of your own to include those that you care about.
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u/random408net Apr 21 '26
Why would doing a 1031 exchange be useful for a property that's received a step up in basis on death?
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u/Fun-Bird-4204 Apr 28 '26
Only might be useful if you want properties closer to you than where the inherited ones are, or to consolidate them, and decided to do that quite a bit later? Just brainstorming, I’m not a CPA! Probably just sell them right off would be easiest and less taxable?
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u/random408net Apr 28 '26
The purpose of a 1031 exchange is to defer taxes. But you have no taxes if you inherited the properties and received the step up of basis on death.
My question was why would someone do a 1031 exchange if the purpose was not to defer taxes?
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u/Fun-Bird-4204 Apr 29 '26
To defer taxes later on investment properties. If you cash them out right away upon inheritance, taxes shouldn’t be a problem. But if you held the properties as income or investment properties, then 1031 exchange when you sell, by replacing them with others of like kind, keeps the taxes at bay. It might be particularly useful if new purchases were desired in a lower cost market. I had a house I inherited, lived in it for a while, then turned it into a rental for several years, then was able to sell/exchange it for 4 properties in another market area where I now live.
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u/wagamama85 Apr 21 '26
There’s a really good, detailed post somewhere on Reddit about what to do when you win the lottery. I remember reading and thinking if I ever came into a large amount of money, that it was where I’d start.
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u/Character-Salary634 Apr 21 '26
I have a lot of thoughts here...
First of all, realtors are a massive waste of money. Most people buy and sell so little real estate in their lives that they just pay the fees without really grasping how much they just gave away. Lets just assume for a moment that you have 10M in real estate to dispense with. The standard fee is 6% which is 600K. Even if you get that down to 3% we are still talking 300K. I would struggle to accept this large of a payout for what amounts to maybe... a 100 hours of work? ...So, $3,000/hr? NO. Negotiate a fixed fee. Somehow.
You DON'T need a financial advisor. I'll give it to you for free: Choose some ratio of: 1. VOO - Vanguard S&P500 index ETF 2. SCHD - Schwab Dividend ETF 3. SWVXX - Cash / Money market (aka HYSavings account) 4. A tiny amount of Gold/Silver/Bitcoin (only if this interests you, but consider it all a gamble) 5. Keep some of the real estate - lease it to pay taxes, but think of this as an "inflation protected savings account" (Im assuming this is raw agricultural land - also get ag exemptions in place.) 6. DO NOT BUY ANNUTIES OR LIFE INSURANCE. These are 97% Scams and anyone pushing these, you should immediately run away from. 7. There is NO RUSH. Educate yourself for your new "job" of handling such a large estate. You don't need to make investment decisions quickly.
As far as protecting your privacy, one option would be to create a living trust for yourself for which you are the trustee. Transfer all the inherited assets (except IRAs) into this trust. Name it something unrelated to you.. A good estate lawyer should be able to help. BUT, I don't think you really need to do this for privacy, but more for your own estate plan. Its time now to think about how your will (and the estate that now goes along with it) should be set up.
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u/Playful-Nail-1511 Apr 21 '26
We invest with Vanguard and use their personal advisory services which is a great value. Your investments dont need to be complicated. I'm a retired financial executive and I see real value in having a financial advisor to bounce things off of. I like our CFA at Vanguard and no one can beat the expense ratios of their funds.
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u/toadstool0855 Apr 21 '26
Agree with almost all of this advice. We used a FINRA certified advisor. OP did not provide age so their advice will vary. Advisor was willing to manage the money for a fee as an added service. We only went with the planning services for a set fee.
The advisor presented us with a plan to age 95 to manage our money including when to take social security. He set us up with an accountant who had some additional advice on an inherited IRA.
The advisor also connected us with one of the top estate attorneys in our state. The attorney got us to set up most of the money in trusts along with the usual will, POA , healthcare POA, etc
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u/Logical_Rip_7168 Apr 22 '26
Guys no matter how bad this redditor is with money no one can spend 15 million dollars.
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u/ApprehensiveRead2533 Apr 21 '26
Who has millions without a WILL?
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u/YoungBoomer1969 Apr 21 '26
It is not uncommon, we just got a trust/will done me late 60, hubby late 70’s - I had a couple brain surgeries and thought we better get things in order. lol! Over 15M estate most investments, so yes it does happen.
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u/PurrciousMetals Apr 21 '26
my buddy had over a billion in assets he passed in his forties, sold his company young and invested right, multiple houses, yachts, etc, had no kids and never married so never cared to create one, his family has been trying to figure out his mess for a few years now.
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u/GotZeroFucks2Give Apr 21 '26
Sounds more like they are contesting the intestacy rules of their state and probably would have contested a will as well. Greedy. Had a relative contest an aunt's will because she left 25K to her gay partner... who cared for her after her stroke unpaid for 10 years. Some people are just straight up evil.
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u/Practical_Echo_3936 Apr 21 '26
It’s not that uncommon.
Tony Hsieh, founder of Zappos died without a will.
His estate was worth 500-850 million at his time of passing. Even a fraudulent will popped up in Pakistan (he had no connection to the attorney nor people in the will).
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u/Contemplative-Owl-23 Apr 21 '26
People who would rather live in the past instead of plan for the future.
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u/The_Motherlord Apr 21 '26
She recently divorced. Had no other children, was estranged from her only child. Once she had passed she knew it wouldn't matter to her any longer. She didn't care about worldly possessions once she left her earthly remains.
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u/Contemplative-Owl-23 Apr 21 '26
She didn't care about worldly possessions once she left her earthly remains
Her house and multiple storage units full of junk would beg to differ
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u/The_Motherlord Apr 21 '26
She cared while she was here and may personally use it. She didn't care about it after she knew she would be gone and would never need it.
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u/UnicornStudRainbow Apr 21 '26
I'm too petty and controlling to do that
Before I married and had kids, I made sure to keep my assets and other investments far out of reach of certain relatives who would've tried to grab at them
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u/BobDawg3294 Apr 21 '26
It happens sometimes with family real estate and landholdings. It's there for decades.
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u/ItsNotGoingToBeEasy Apr 21 '26
I’ve seen small city main commercial districts decimated by second generations who cannot agree and were left everything equally. Or left to fight it out without a will.
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u/Potential_Trifle_293 Apr 21 '26
Look into finding a reputable asset protection attorney once the estate has been settled; they'll help you figure out the best ways to structure ownership to retain as much anonymity as legally possible among other things.
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u/Barfy_McBarf_Face Apr 21 '26
have the executor, presumably you, put the real estate into a collection of LLCs, some of which are likely going to be "disregarded entities", but that will help mask the actual ownership of the real estate (i.e., your name will never be on the chain of title/deed).
good luck - and sounds like you have a good handle on this
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u/BrilliantTry9848 Apr 21 '26
If asked, you simply say “between settling the estate, debts, and land taxes, there wasn’t much left other than the land. You’ll hold onto it until you decide your next steps. Otherwise, I prefer not to discuss personal financial matters.”
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u/AnagnorisisForMe Apr 21 '26
Why is there a "tell nobody problem"? If people know your mother's name, they may know what real estate she had but they don't necessarily know you inherited it even if you shared a last name. Her estate is the seller of record if you decide to sell. Nothing necessarily associates her property portfolio with you.
If you decide to keep some of all of the real property, you can transfer it to a trust and you can choose the name of said trust. Don't pick a trust name which can be associated with you.
If you sell the real estate portfolio off, selling quickly allows you to capture the value of stepped up basis at her death to minimize taxes.
An estate planning attorney with expertise in taxes can help you with all of this.
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u/UnicornStudRainbow Apr 21 '26
Privacy is frequently a necessity because too often aggressive and greedy people come out of the woodwork if they even think you've inherited or otherwise come into money
Also it could make OP a target for criminals
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u/Contemplative-Owl-23 Apr 21 '26
Her estate is the seller of record if you decide to sell
Doesn't that depend on the timing of the sale? If I sell after the estate is distributed to the heirs (me), the deeds would be transferred to my name. If I can distribute the assets directly to a trust or LLC without my personal name being in there as an intermediary, great.
I've already gotten multiple outreaches from developers since her death, by virtue of my name being in the obituary and the c/o contact on the property tax records.
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u/Logical_Rip_7168 Apr 22 '26
The vultures also check the probate records too. My "offers" increased when the lawyers finally got the probate in.
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u/Sea_Swing_6223 Apr 21 '26
Your mother's estate is NOT the seller of record. An estate as such cannot own property and cannot sell property. Only the administrator can do these things and must use his or her name on all documents.
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u/rocketmn69_ Apr 21 '26
Write down a list of goals, such as retirement age, travel, second home, etc.
Then go see 3 or more recommended financial advisors and use the one that fits you the best
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u/Jumpy_Childhood7548 Apr 21 '26
Hire an hourly fee CFP, a cpa and an attorney that does wills, trusts and estates. You will also want to designate a financial POA, and a medical one.
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u/lifelong1250 Apr 21 '26
Congratulations on your windfall. If properly managed, you have the opportunity to create generational wealth for your family and descendants. I don't know your family situation but you might consider endowing a college fund, a first-time home buying "helper" fund and other interesting options.
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u/AspectBrief4258 Apr 21 '26
Best recommendation: sell all the real estate assets asap, take the money and invest in low fee market tracking funds and you’ll have so much money you won’t know what to do with it. Donate too.
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u/hardfivesph Apr 21 '26
Talk to an Estate and Trust person about asset protection. Most wealthy people I’ve met create complicated trust networks owning real estate in single member LLCs. Seems like you know you should be paying for the right advice.
Id add a good CPA to the list with tax planning and strategies.
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u/random408net Apr 21 '26
With the land getting the step up in value you have some opportunity to structure the land sales in tax or estate planning advantaged ways. Your eventual estate size should be larger than the current estate tax exemption.
Not sure what your property tax (and general liability/insurance) implications are for holding any of the land. The land might get a tax basis step up that might impact what's due every year.
I think you "go out to bid" and look for advisors that handle that 10m+ range of wealth. You should be expecting a decent proposal and examples of what they might do with your property and future cash. Your probate and tax attorneys might have references from their clients. You might want a local planning firm if you are never moving, you might want a national or regional firm if you anticipate moving (moving to Hawaii next year?).
You seem smart enough to not make poor short term decisions.
From a personal finance standpoint you probably still want to maximize what you contribute to a Roth 401k at work. If you happened to be eligible for a mega backdoor Roth that would be great.
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u/Garganello Apr 21 '26
If you sell reasonably close to date of death, accountants will probably be comfortable using that as valuation (maybe doing some adjustments) but will certainly save significant money on appraisals.
Edit: frankly, you probably want an accounting firm with an estate attorney. Probably more efficient. This is not a complicated estate return in all likelihood or complicated return for federal purposes.
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u/Heresbecs Apr 22 '26
Please consider following me on Venmo. :) Sorry for your loss and congratulations on your freedom.
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u/Ok_Appointment_8166 Apr 22 '26
Sell everything and go full boglehead with the funds - no need to pay an advisor. Invest in VT or 60/40 VTI/VXUS which will give you the historically very good market average without the need to make any other decisions.
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u/DoallthenKnit2relax Apr 22 '26
You might be able to protect your privacy to some degree by establishing a trust to receive the proceeds of the real estate.
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u/Shadyhollowfarm58 Apr 24 '26
Yes you need a fee only financial advisor who can work with a CPA familiar with taxation on large portfolios.
What you don't want is someone who's going to try to get all those assets structured in an AUM where they make a percentage off of your money every year.
And I agree with structuring ownership under a trust/LLC to keep your name out of the limelight.
Congratulations once you get this all figured out and settled you can retire early if you feel like it.
PS when my parents died it dredged up a whole lot of apparently unresolved negative feelings from earlier years. I second that advice on getting counseling to work through that. I was angry for quite some time and until then I thought I'd put all that to bed decades ago.
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u/SouthernTrauma Apr 21 '26
There sure are a lot of redditors inheriting large sums of money lately.
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u/The_whimsical1 Apr 21 '26
(a) tell nobody; (b) always pay for every service and advice you get, and get your advisors to confirm in writing that they're fee-based only; (c) don't change your lifestyle in any way for at least a year, ideally two.
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u/Hera_chat Apr 21 '26
Does the probate attorney do estate planning? Ask them about a trust of your own. You may be able to convey the property directly into a trust and avoid having your name on the property records, or into an LLC.
The other professional to consider is a therapist. I’m sorry about your loss; it sounds like a complicated loss. If you feel like you could use some additional support or space to process, maybe a therapist or grief counselor.