How to Handle Inherited Funds in Your Bank Account

🧾 Understanding What You’ve Inherited

Before making any financial moves, take time to understand the type of inheritance you’ve received.
Inherited funds may include:

• 💵 Cash deposits
• 📈 Investment accounts such as IRAs, brokerage accounts, or annuities
• 🏡 Property or real estate proceeds
• 🛡️ Life insurance payouts
• 📜 Trust distributions

Each type has different tax rules, withdrawal requirements, and long-term implications. Consulting a financial advisor
or tax professional can help you avoid unexpected liabilities.

⏳ Avoid Immediate Spending

It’s natural to feel the urge to use inherited money quickly — whether from excitement, relief, or emotional stress.
However, many experts recommend waiting before making major decisions.

Give yourself time to process both the emotional and financial impact. A cooling-off period allows you to think clearly
and align your choices with future goals.

🔒 Protect the Funds by Placing Them in a Secure Account

Many members choose to deposit inherited cash into a safe and accessible account while they plan their next steps.
At CACCU, we offer:

• 💰 High-yield savings accounts
• 🏦 Money market accounts
• 📅 Share certificates (CDs)

These options allow your inheritance to stay protected and insured while earning interest. Keeping funds separate from
everyday spending accounts can also help you stay disciplined during the planning period.

🧰 Consider Your Short-Term Needs

Evaluate whether the inheritance can help you strengthen your financial foundation. This may include:

1️⃣ Building or replenishing an emergency fund

Setting aside 3–6 months of expenses creates long-term stability.

2️⃣ Paying down high-interest debt

Eliminating credit card or loan balances frees up monthly cash flow.

3️⃣ Covering upcoming essential expenses

Repairs, medical costs, or necessary home improvements may be important priorities.

🌱 Plan for Long-Term Financial Growth

Once immediate needs are met, consider strategies to make your inheritance work for you:

📊 Investing

Depending on your goals and risk tolerance, investing can help your inheritance grow over time.

🧓 Saving for retirement

Inherited funds can supplement retirement accounts or be invested to build long-term security.

🎓 Saving for education

A portion of funds can be directed toward college savings for yourself or family members.

🏠 Purchasing property

Some members use inheritances to make a down payment on a home or reduce their mortgage balance.

Each choice should align with what matters most to you — whether that’s security, growth, legacy, or lifestyle.

🧮 Understand Tax Implications

Always consult a tax professional. While most inherited cash isn’t taxable as income, certain accounts — like inherited
IRAs or investment assets — may have specific rules. Capital gains taxes, required distributions, or early withdrawal
penalties may apply depending on the asset type.

⚠️ Your local member service rep or branch manager cannot provide legal tax advice. A tax advisor can help clarify your
responsibilities and identify opportunities to minimize tax impact.

🤝 Communicate with Family, If Appropriate

Inheritances sometimes lead to emotional or financial misunderstandings within families. Clear, calm communication can
help set expectations and avoid conflict, especially if funds are tied to shared property or ongoing estate processes.

🏛️ How CACCU Can Support You

Handling inherited funds doesn’t have to be overwhelming. At California Community Credit Union, our team is here to help
you understand your options, stay financially secure, and make confident decisions that support your goals.

We can guide you through:

• ✅ Setting up secure accounts
• ✅ Exploring savings and certificate options
• ✅ Understanding next steps for long-term planning
• ✅ Connecting you with trusted financial professionals

📞 Call us today: (800) 332-1418
✉️ Email: [email protected]
🌐 Visit us: https://caccu.org/