The Sugar Daddy Podcast
Ready to normalize talking about money? Then welcome to The Sugar Daddy Podcast. Every episode will get you one step closer to your financial goals. Whether that is learning how to invest, budget, save, retire early or talk about money with your partner, Jess & Brandon have you covered in a way that's easy to understand, and easy to implement. Tune in as they demystify the realm of dollars, so it all makes cents, while giving you a glimpse into their relationship with money and each other.
Brandon is an award-winning, licensed financial planner, and owner of Oak City Financial, with over a decade of experience and millions of dollars managed for his clients all over the United States.
New episodes published every Wednesday.
The Sugar Daddy Podcast
111: Most People Blow Inheritance Money — Here’s the 5-Step Fix
Most people blow through inheritance money in just a few months.
In this episode, Jessica and Brandon break down the 5-step plan to make sure a $50K windfall actually improves your life, instead of disappearing into lifestyle creep, bad investments, or impulsive spending.
✅ What to do in the first 90 days
✅ How to protect and grow sudden money
✅ Why most people get windfalls wrong
✅ Common traps with taxes, family, and fake friends
Whether you inherited $50K, got a surprise bonus, or won big — this episode shows you exactly what to do next.
🎙️ Got a story about blowing or building from sudden money? DM us @TheSugarDaddyPodcast or email us at thesugardaddypodcast@gmail.com
Head over to our YouTube channel to catch this episode in full video form.
Apply to be a guest on the show.
You can also email us at: thesugardaddypodcast@gmail.com
Connect with us on Instagram
We’re most active over at @thesugardaddypodcast
Chat with Brandon
Want to work together? Learn more about Brandon
Book a free 30-min call to see if it's a fit.
Show us some love, hit subscribe, leave a five star rating, and drop a quick review!
Money, relationships, and the mindset to master both. Hosted by financial advisor Brandon and his wife Jessica, The Sugar Daddy Podcast breaks down how to build wealth, unpack old money beliefs, and have real conversations about love and finances. Our mission? To help couples and individuals grow rich in every sense of the word: emotionally, relationally and financially.
In today's episode, we talk about what to do if you come into an inheritance or a windfall, a large amount of money. Imagine waking up and finding out you just inherited$50,000 or more, or maybe your company gave you a huge bonus, or you hit a big with a windfall. That sounds amazing, right? But here's the truth. Most people blow through sudden money in a matter of months. In this episode, we're breaking down how to make sure that$50,000 or more doesn't slip through your fingers. We'll talk about the first steps to take, how to build a strong financial foundation, and how to make this money create lasting impact instead of short-term excitement. If this is of interest, stay tuned. Today we're talking about what I think most people wish would happen, which is like you wake up and boom, you have a ton of money just waiting for you.$850 million.
SPEAKER_03:Yes, it would be nice. Uh I can think of a lot of things that I would do if I wanted to lie.
SPEAKER_01:So many things. There would be signs.
SPEAKER_03:There would be to kind of bring this conversation to like a more realistic scenario for most people is that, you know, we're talking about if you were to inherit maybe$50,000. And like you said, like winning the lottery, that'd be uh, you know, things that we all want to do. However, inheritance obviously comes from somebody passing away. So normally it's a negative situation. But the idea here is that out of that negative situation, if you do receive some type of inheritance, we do want to focus on some of the things that you can do to make sure that that inheritance that you do receive doesn't go to waste.
SPEAKER_01:Yeah. I think too, there's like this caveat where some people know what they're going to be getting, right? Like every single time my mom goes on a trip where she, especially if she's flying, she reminds me of Doomsday mom. She reminds me of what my brother and I would get, um, you know, and where things are located. And, you know, I mean, in in what we do with the podcast, I do appreciate that, you know, things are organized and we know where to find things, et cetera. Um, and a lot of people don't. A lot of people have no idea if and what they may or may not be getting, um, let alone where it might be coming from, et cetera. So, you know, it it it's this caveat of like, even if you know what you're getting, you know, I don't think about what I will do one day with my inheritance because, like you said, it's gonna mean that our parents are no longer here, right?
SPEAKER_03:Yeah, it was like obviously with what I do for a living, I manage, you know, some aspect or all of like our in-laws' money. Sure. And obviously I know how much they have and all everything like that. But like I don't think about that because, you know, no amount of money is going to equate to, you know, me having my mom here or my you know, or your my you know, your parents here.
SPEAKER_01:Exactly. But, you know, winning a lottery, getting a huge bonus at work. I mean, look at all the people who work at NVIDIA who are now millionaires, right? Or like uh what's the other company where everybody's getting like a$1.5 million bonus. Or I mean, they're you're starting to hear things, right? But then there's also on the flip side of that, is I've seen plenty of threads where people talk about getting an inheritance that they had no idea they were getting, and then they feel completely unprepared to manage that large amount of money. So we wanted to dive in uh because we are getting older and our parents are getting older. And unfortunately, I think we've both had scenarios where, you know, we know people, whether close or more distant, where parents, for whatever reason, are passing away, um, you know, and may or may not be leaving an inheritance. So we wanted to shed some light on tips and tricks that we think would be helpful in the event that you do come into some sort of a windfall and how to best handle it and and not blow through it.
SPEAKER_03:Yeah. So starting out with step one, I honestly think is the most overlooked step.
SPEAKER_01:Okay.
SPEAKER_03:I think people get way too much into the numbers and thinking about all these things. But no, honestly, step one is just take a breath. Take a moment.
SPEAKER_01:Take a moment.
SPEAKER_03:Because, you know, if you're inheriting, you know, money, more than likely someone that you care about passed away. So you do need to deal with, you know, the grief or any other type of emotions that are associated with that potential loss. Or even in a scenario where, you know, you you won, say, fifty thousand dollars from something, you know, you might be excited and everything like that. But rarely are good decisions made when it's based solely in emotion.
SPEAKER_01:Yes, that's true. And you've even known somebody, weren't they were on some sort of a game show, like Shazam or something, I think.
SPEAKER_03:And like a guy somebody that went to high school, yeah. They that show Shaz Shazam, uh guy that went to high school with, I think they won like the million dollar prize.
SPEAKER_01:Yeah, that's crazy.
SPEAKER_03:Yeah.
SPEAKER_01:Yeah. So again, like if you win a million dollars, sure, they're gonna be taxed out the wazoo. But you now have what,$700,000?
SPEAKER_03:Like it was two people, so you had to split it.
SPEAKER_01:Okay. So$350,000. Uh take a take a beat before you do anything with that money, right?
SPEAKER_03:Yeah, they kind of call it like, you know, you take, like, say, the 90-day rule where you're not making any major, you know, financial decisions or impulse purchases or anything of that nature for 90 days. So give yourself that 90-day period to really think through, hey, what should I actually do with this money and how can it best serve me so that I don't just blow through it?
SPEAKER_01:Can we agree that if you're getting a large amount of money and you don't need to make any kind of rash decisions, please put that money at least into a high yield savings account?
SPEAKER_03:Oh, yes, yes.
SPEAKER_01:While it's while you park it and while you decide on what to do.
SPEAKER_03:And once again, with the caveat here, we're talking about if you're coming into a windfall, say$50,000, and you don't have immediate needs. So for example, like if you are behind on your on your rent, you don't have enough money to pay for groceries each month. Obviously, in those scenarios, the money needs to go towards Maslow's hierarchy of needs. Yes, towards your needs. We're talking about if all those needs are met and this is excess money that's you need to make a determination on what to do with.
SPEAKER_01:Yeah. Okay. So Maslow's hierarchy of needs, take care of what you need to take care of to be safe and to keep your family safe, of course, but also move that money into a high yield savings account while you park it and wait to really make true decisions about what you're gonna do with that money.
SPEAKER_03:Yeah.
SPEAKER_01:Okay. Um, where do you where do we go from there?
SPEAKER_03:All right. So for me, moving to step two is you want to look at kind of you know, solidifying what's considered to be your financial foundation.
SPEAKER_02:Okay.
SPEAKER_03:All right. So if you're someone that maybe has, you know, some debts that you need to pay off, whether that's, you know, high interest credit card debts, student loan debt, personal loans, whatever it may be, depending on the interest rate on that debt, this money may be better utilized to start, you know, paying off all or a portion of that debt.
SPEAKER_01:So what? Maybe anything with uh an interest rate of 7% or higher? Yeah. Yeah. I mean, I I know usually it used to be like anything six seven percent or lower was like good debt, quote unquote. But now interest rates keep rising.
SPEAKER_03:I mean, like I said, when it comes to that, it's each individual situation. But I would say that, you know, consumer debt for sure. Yeah, seven, eight percent.
SPEAKER_02:Yeah.
SPEAKER_03:Um, depending on your situation, because sometimes it doesn't make sense to do with the student loans, depending on what your situation is. But 100% with the consumer debt, credit card debt, especially, that money would probably best be utilized to pay off that debt.
SPEAKER_01:Yeah. Okay.
SPEAKER_03:Um, you know, after that, we always talk about building up your emergency savings. You know, having six to twelve months worth of expenses saved up in a high yield savings account so that if, you know, the unknown happens, you have money to get through an emergency, if you get laid off, whatever it may be, you have this money saved up that you can use to live off of. So this money could be used towards funding that.
SPEAKER_01:Yeah. Okay. And then after we uh pay off our high interest debt, we uh fund our emergency. Where do we go there from there?
SPEAKER_03:Now we do want to assess kind of your insurance insurance coverage. The reason for this is that I always say that we need to put some protections in place for things that can happen today or tomorrow so that we can then focus on our long-term plan of growth. Because what good does it do you to put away money into an investment account today if you can't protect against if you have an accident tomorrow and you can't work? So this is where we're gonna look at, you know, your disability insurance. Do you have it through your employer? Do you need additional life uh disability insurance, you know, as a for an individual policy? If you do you have a life insurance policy, you know, um, is that up to date? Adequate coverage?
SPEAKER_01:Do we need to increase our life insurance if we come into a big windfall?
SPEAKER_03:Well, not necessarily.
SPEAKER_01:Okay.
SPEAKER_03:What you're gonna do is assess what your needs are as an individual, as a family from a life insurance standpoint, and that's something that I can help you out with if you have no idea, or somebody else that is, you know, a licensed life insurance agent, they can help you out with that as well. But that's gonna be an individual thing as far as determining how much is adequate for your situation.
SPEAKER_02:Okay.
SPEAKER_03:But this could be the money that helps you pay for that additional life insurance.
SPEAKER_02:Right, right.
SPEAKER_03:Because really what we're looking at here is that with the windfall of money that you're getting, we want to make sure that we are propping up our own financial situation from a planning standpoint to be not just optimized today, but in the future. Right. And this could be setting the groundwork that can allow you to build upon that.
SPEAKER_01:Yep. Okay. I love it. So we're putting the basics in place. Where do we go after that?
SPEAKER_03:Well, next, since we kind of have that protection aspect in place now, now we are can we can actually start to focus on maybe some of the um forward thinking as far as from a growth standpoint. So, for example, like, you know, are you maxing out your 401k plan? Are you, do you have, you know, do you want to contribute to an IRA or a Roth IRA or even just a brokerage account?
SPEAKER_02:Okay.
SPEAKER_03:So the idea here is that we're looking at long term. What can we do with this money to help grow? And that's gonna be investing in.
unknown:Yeah.
SPEAKER_03:Now, one of the things you do want to check out at this time as well is that you probably would want to consult with the CPA because depending on how you inherit the money, it's gonna determine whether or not you do owe taxes. And if you do owe taxes, how much you would owe. Because you do want to 100% take into account if you're gonna owe taxes on any of this money, you want to make sure you know that beforehand. The reason being is that depending on how you receive the money, planning could be done beforehand on by the specific, let's just say in the scenario, someone in your family passes away and you receive money. Things can be done on the person who passes away before they pass away in order to ensure that maybe a transfer is tax-free. But if it's just like, you know, oh, you're getting money out of a savings account and you know, it's certain things haven't been done, you could potentially be taxed on it.
SPEAKER_01:Is life insurance taxed?
SPEAKER_03:Life insurance generally is not taxed.
SPEAKER_01:Okay. So there's caveats like everything.
SPEAKER_03:There's always a caveat to everything. And so that's why I always say it depends on your situation, because I don't like to just give a blanket statement.
SPEAKER_01:Yeah. But like in most cases, if you get a check from life insurance, you should be okay.
SPEAKER_03:Correct.
SPEAKER_01:Okay. Which is another way the wealthy build wealth is through life insurance.
SPEAKER_03:Yeah. And also too, because there's multiple ways that you can receive money. So one of the ways that I'm thinking of that a lot of people that could be a little bit more difficult in understanding how you have to utilize it is if let's just say hypothetically, you know, your your parent has a IRA and you're the beneficiary in the IRA. So now you received an inheritance IRA. There are specific rules around how you have to utilize that.
SPEAKER_01:Okay. But with proper planning, there might be ways to mitigate.
SPEAKER_03:Yeah, proper planning can have mitigation, but then also working with the CPA to ensure that you're following all the IRS rules when it comes to that.
SPEAKER_01:Yes. Okay, got it. Um what else?
SPEAKER_03:Um, once again, this is gonna be like kind of like things that we've always talked about as far as having an actual conversation on what your specific goals are. Because a lot of the stuff that maybe you're gonna do with this money is also gonna be determining upon what your goals are. So for example, well,$50,000 is not going to be.
SPEAKER_01:I mean, yeah. Remember when you like you thought that like$50,000 would be like like a life-changing amount of money.
SPEAKER_03:You mean like when our kids are kids' age?
SPEAKER_01:Exactly. And then now it's like, I mean, it'd be nice and I would gladly take it, but like you know it's not a life-changing amount of money.
SPEAKER_03:$50,000 wouldn't change anything about our life.
SPEAKER_01:No. That was so arrogant.
SPEAKER_03:I'm just saying, like in reality, like I'm being honest about our situation.$50,000 isn't gonna change our life, but I'll take it all the time. I'll take$50,000.
SPEAKER_01:Yeah.
SPEAKER_03:And for some people, yes.
SPEAKER_01:$50,000 wouldn't be a life-changing amount of money.
SPEAKER_03:And I would honestly say for I'm not this I'm I'm honestly saying that if$50,000 is gonna be a life-changing amount of money for you, more than likely some of these steps wouldn't apply because you have an immediate need for it.
SPEAKER_01:Right. Yeah.
SPEAKER_03:So I do want to preface this is for people who already have all their needs taken care of. Because, like I said, if$50,000 is gonna change your life. I'm not, this is not a judgment conver uh statement either. This is just saying that you're gonna have to do something, you're gonna use this money for something different if it's gonna change your life today.
SPEAKER_01:Yeah.
SPEAKER_03:Tomorrow.
SPEAKER_01:Yeah. Okay.
SPEAKER_03:However, you know, kind of back to what we were talking about before as far as the investing aspect is that you are gonna want to make sure that you're investing wisely based upon your specific situation. So, you know, we're big fans of, you know, the index ETFs, but you do need to assess your own specific situation with taking into account what's your risk tolerance, what is your time horizon before you actually need the money. And then you can invest accordingly.
SPEAKER_01:Okay.
SPEAKER_03:All right.
SPEAKER_01:Yeah. Let's talk about, okay. So we've got the basics, we're planning for a future, we're taking care of our debts, et cetera. Now let's talk about some of the fun stuff. Like, what else could we be planning for?
SPEAKER_03:Well, I mean, in all honesty, if you're, you know, you could possibly use it for some things that, you know, are maybe a little bit more enjoyable to you. You know, you could possibly um plan a vacation. Because, all right, so I'm a I'm gonna use a real life situation for people that I know who have passed who have had family members pass away. They received an inheritance, and for the most part, their financial situation is kind of taken care of. They think about, hey, what would this person that I love, what would they love, what would they want me to do with this money? So sometimes it's like, say, for example, you have an an aunt that loved to travel and you guys used to travel together.
SPEAKER_01:It's like honor them by taking the trip type thing. Yeah. Maybe you want to take a trip, you know, or start a foundation or do some charitable giving for like organizations that maybe that person was really involved in, something like that.
SPEAKER_03:Yeah. So if you have the ability to not necessarily need this money for your own personal use, like you said, if you're e the family member was very heavily involved in a specific charity, maybe giving a portion of m that money to the charity.
SPEAKER_01:Yeah. Yeah, I love that. I mean, that's the kind of stuff where you can then say, like, what would I be able to do that I wasn't able to do before I got this money, and then take advantage of those things.
SPEAKER_03:And even from an investing standpoint, maybe that person was heavily into education. And then, you know, you can use this money that you inherited to put in to like a 529 plan for your kids.
SPEAKER_02:Your child.
SPEAKER_03:You know, I mean, I know like, you know, my mom's heavy on education, obviously, being a former math professor, and that's something that she's very, you know, um adamant about is making sure that our kids' college is funded. So you can kind of, like I said, take into account what was special about that person and maybe use that money to honor that person.
SPEAKER_01:Yeah, I love that. Okay. Um what are some things people should avoid if they come into a windfall?
SPEAKER_03:Uh these are gonna be the stories of everyone that you've basically ever heard that's like, you know, won the lottery or, you know, just came into a significant amount of money without taking a pause to think about what they should do with it. And in all honesty, part of it, it's I don't actually fault a lot of people for that because once again, we do this podcast because of the lack of financial literacy that's taught to us, you know, basically non-existent in K through 12 and not even so much really in college from that standpoint.
SPEAKER_01:Yeah, not not at home either.
SPEAKER_03:So a lot of times you don't have the knowledge on how to handle a situation like this. But I would say number one is don't have some immediate lifestyle creep. So if you receive an inheritance, don't go out and like buy a new car.
SPEAKER_01:Like Gotta get that Range Rover.
SPEAKER_03:Or go out and buy a bunch of clothes or like um a nice watch or whatever it may be.
SPEAKER_01:We've actually had several guests on the podcast that have talked about exactly this, right? We had former NFL football player went out, bought all the cars, all the things. We had uh now financial coaches who came into a large uh windfall, and you know, within a pretty short amount of time, all of that money was gone. We've also had somebody who got an inheritance from a family member while like getting ready to start college, basically went out clubbing, buying bottles, buying clothes, nothing to show for it. Like people have these stories, you know.
SPEAKER_03:I mean, and also we have you have a friend who unfortunately her parents passed away while she was, you know, a a young adult and ended up using a big portion of the money on a wedding. Like way too much than what you should actually spend probably on a wedding based upon your current financial situation.
SPEAKER_01:Yeah. And now they're divorced.
SPEAKER_03:Yeah. And so these things happen. And like often what happens is especially if it's like a parent and it's happens, you know, the the person they they they pass away prematurely. Like that's literally like one like outside of obviously not being married, that's like one of the worst things that I think anyone can experience is losing a parent at a significantly younger age than you expect.
SPEAKER_02:Right.
SPEAKER_03:And so dealing with that grief does not help for making sound financial decisions on your own.
SPEAKER_01:Right. Yeah, absolutely. Well, even you think about people whose spouses passed away and maybe they are already later in life. I know people who, you know, they'll say, like, okay, I don't need this big house, but I also don't need to be moving right now, right? I don't need to make the financial decision of, okay, I just lost my spouse. Maybe this is too much house for me. But like, let me just, let me just be. Let me just exist in this moment with this information and not make those rash decisions, right?
SPEAKER_03:Because Yeah, and that's kind of what we talked about as far as having that 90-day period and just kind of deal with the emotions of whatever this uh situation is before you make any really big decisions.
SPEAKER_02:Yeah, absolutely.
SPEAKER_03:So like that lifestyle creep is the biggest one. Like, don't go out and just randomly buy, put a down payment on a house without really thinking through, you know, all the implication that comes with buying a house. So really just focus on keeping your lifestyle as is and not buying those big purchases.
SPEAKER_01:Yeah, yeah.
SPEAKER_03:Um, another one here is that when a family member passes and then you receive an inheritance, there might be other family members that didn't receive anything.
SPEAKER_01:Talk about it.
SPEAKER_03:And now they're like, hey, why don't you loan me some money for this or give me some money for that?
SPEAKER_01:Or we've heard crazy stories of people coming out the woodworks and being like, well, so-and-so said that they wanted me to have. Listen, if you want somebody to have something, put it in writing.
SPEAKER_03:That's that's number one.
SPEAKER_01:I say that all the time.
SPEAKER_03:I say that all the time. Do not leave anything up to interpretation after your death. Your kids, you could have two kids and they'd be the best of friends. You're like, oh, you know, it's fine. I don't just have everything written out. They'll, you know, they'll split it evenly. We'll split it evenly. No, have it ironed out. Like, I made sure that, like, for example, like I like I'm the person that manages my mom's money. I'm the executor of her will. And I'm like, mom, we put like, even though like I would never do that to my brother, no, everything is legally ironed out 50-50.
SPEAKER_01:Yeah.
SPEAKER_03:Period.
SPEAKER_01:Yeah. If it's not in writing, it doesn't count. But we've heard stories. And I mean, even my my undergrad education was supposed to be taken care of by a family member. And it was always, it was very well known. It was always verbalized. It was not written down. And guess who's still paying off for student loans?
SPEAKER_03:Yeah, you didn't receive anything.
SPEAKER_01:No.
SPEAKER_03:And it was supposed to be paid for verbally.
SPEAKER_01:Correct. So if it's not in writing, it doesn't count. Ten toes down on that. If you want somebody to get something, put it in writing. Make sure those beneficiaries are up to date. Make sure they're outlined. Make sure your will is up to date. We have multiple episodes on all of that. If it's not in writing, it doesn't count.
SPEAKER_02:Period.
SPEAKER_03:Another one here is don't get yourself into risky investments. You know, once you get a windfall, you might have friends, family, whatever, talking about, hey, I know this investment. I know this investment. I got this business idea. Oh, you should invest in this hot stock tip, or you should invest in the, you know, this new cryptocurrency that I heard is going to blow up. Do not get yourself into risky investments, especially considering that you don't understand them. Like, if you, like I said, if you are an advanced individual when it comes to financial literacy and you have everything else taken care of, that's a completely different story. But for a majority of people out there, this is not the route you want to go. You want to make sure that you take care of all the other things that we talked about first.
SPEAKER_02:Yeah.
SPEAKER_03:All right. And the uh kind of when the last pitfalls, in all honesty, is taxes. Do not forget if you owe taxes on this. So that's why I said once again, that's why one of our steps was get with a CPA and make sure that you understand if there's any tax liability and if there is what it is, so that you're taking that into account and you don't spend that money. Because nothing's worse than finding out that you owe taxes and you've already spent that money and you don't have the money to pay the taxes.
SPEAKER_01:Can we also just pause for a moment, moment to remind people that just because somebody passes away doesn't mean that person doesn't still have to file their taxes?
SPEAKER_03:Yeah, that's true.
SPEAKER_01:Which is crazy. Like, how old were you when you realized that when somebody passes away, they still have to file taxes?
SPEAKER_03:I mean, I only know this because of what I do. I've never actually had to experience that. Um, I watched my mom have to do it when my grandparents passed away as far as her filing their taxes.
SPEAKER_01:But um Somebody's gonna have to file that.
SPEAKER_03:It's once again, this just goes back to the idea that like so many things that you have to do legally that are not just expressed to us. Or expressed to us to let us know.
SPEAKER_01:Like, think about like where are you supposed to learn that?
SPEAKER_03:I think you learn it from having to go through screwed at the end.
SPEAKER_01:Yeah, no kidding.
SPEAKER_03:Or somebody, or like if you're lucky enough, you find out from somebody else who's already had to go through it.
SPEAKER_01:Right.
SPEAKER_03:But for the most part, most people are that's one of the things that like is it's not on your radar because once again, you're dealing with uh someone that you probably cared about and losing them, their taxes are not on your mind.
SPEAKER_01:Well, but also I think generally speaking, most people think if somebody passes away, their debt goes with them.
SPEAKER_03:Yeah.
SPEAKER_01:And that's like not the case. Not the case. You know? I mean, we should do a whole episode on that because like that has screwed people royally.
SPEAKER_02:Yeah.
SPEAKER_01:You know, when talking about planning, talking about what your parents may or may not have, etc. Like you might not be getting anything from your parents except for their debts.
unknown:Yeah.
SPEAKER_03:That's another thing. When we're talking about the inheritance of money, you could actually inherit some debt.
SPEAKER_01:Yeah. I mean, like, these are things to be aware of, you know.
SPEAKER_03:So And I mean, I don't want to go too far, you know. We love a rabbit hole. We love a rabbit hole here. You gotta think about this too. So one of the things that people may often inherit is property.
SPEAKER_01:Yes.
SPEAKER_03:And inheriting a property is not always a positive.
SPEAKER_01:Yeah, because if your parents paid 14 acorns for it back in 1930 and now it's worth 1.2 million dollars, how do they judge that? Now you're gonna be stuck with a huge No. No? No. Are you sure?
SPEAKER_03:Step up basis.
SPEAKER_01:Okay.
SPEAKER_03:But it all depends on how you structure it.
SPEAKER_01:So hopefully through a trust.
SPEAKER_03:Well yes, but there's well what I'm make a long story short, there is that there are 100 ways to not have to worry about any taxes in that given scenario, but it does have to be structured properly and passed down correctly.
SPEAKER_01:Okay. Which are most people doing that?
SPEAKER_03:I mean, hopefully if most people are just dying. Well, hopefully if you have a million-dollar property that you've gotten to a point where you're like, you're doing some of this planning. But more or less what I was thinking of is that hey, your parents have a house that's not paid off.
SPEAKER_01:Oh, yeah.
SPEAKER_03:And now you've inherited their mortgage. Their mortgage.
SPEAKER_01:Yeah. And now you still have to maintain it. Yes.
SPEAKER_03:Well, and then like for, for example, in this, like, even in this given environment, right now, how we are with housing, right? It's a buyer's market.
SPEAKER_02:Right, right.
SPEAKER_03:So you might have a hard time, you might not have so one, it might not be a house that you ever want to live in or have. You're not interested in be having it as a rental property because you want to deal with all the additional work that comes with that, and it's not paid off, and you don't have money to pay the mortgage per se. Now you just got a liability instead of an asset.
SPEAKER_01:Yeah.
SPEAKER_03:And if you're having a hard time selling it, now you could actually have hardship on yourself.
SPEAKER_01:Well, and we had an estate planning attorney on who said that that's a lot of the times how houses go into they end up going into foreclosure. And then families, instead of building the generational wealth through real estate, actually end up losing wealth and damaging in some cases, you know, their own credit, et cetera, um, in those instances, because maybe there wasn't a life insurance policy to help offset the cost of, hey, we still have a mortgage, we still have to maintain this property. You know, you don't want to just turn the lights and the electricity off and now you've got mold growing. I mean, yeah, you know, I know we're going down a rabbit hole, but you're not just always inheriting good things. So be prepared. But we're talking about the windfalls, um, but just something to think about.
SPEAKER_02:Yes.
SPEAKER_01:So if you come into a large sum of money, um, let's call it fifty thousand dollars or more, stop, breathe, process, don't do anything rash. Then as a next step, I again, these are, you know, considering that you have shelter, you have food, et cetera, then go and analyze your high interest debt and pay that off. So that's your consumer debt that we've talked about, your credit cards, your personal loans, maybe a car loan, et cetera. Then you want to make sure that your emergency fund is where it needs to be. In this climate, we're saying six to 12 months. That three to six months is probably not really enough anymore. It's better than nothing.
SPEAKER_03:It's better than nothing. And that's a starting target.
SPEAKER_01:Yes.
SPEAKER_03:But to have like a fully funded, I would go more than that.
SPEAKER_01:Yeah. Um, then you're gonna look at your protections, your insurances, your estate plans, making sure that you've got your life insurance, your disability insurance, et cetera, et cetera. You might want to also throw in a conversation with a CPA at this point because you want to understand any kind of tax implications that you might be dealing with. And then you'll go into investing. How can you use additional money for long-term planning, for long-term retirement plans? Um, and then, you know, live a little, attach purpose to that money. Go on that trip, open that foundation, give to charity, you know, do things that will really honor the money that you're getting from whomever you're getting it from. And, you know, if there's a way to say thank you, if you will, uh, consider those options as well. Anything else?
SPEAKER_03:I don't have anything to add.
SPEAKER_01:All right. Well, then we wish everybody positive windfalls. You know, we're talking about those lottery wins, et cetera, et cetera. Um yeah. And if you have any questions, or if we didn't address something, or even better, if you've had a windfall of some sort and have learned a really valuable lesson through that that we did not mention on today's episode, let us know. Slide in our DMs, send us an email, let us know your windfall story, and um, let's help educate others on things that they might need to know if they come into a large sum of money. We will talk to you soon. Until next time. Don't forget, Benjamin Franklin said, an investment in knowledge pays the best interest. You just got paid. Until next time.
SPEAKER_00:Sugar Daddy Podcast, yo. Learn how to make the pockets grow. Find news of freedoms by the week, bro. Smart investments, money flow.
SPEAKER_01:Thanks for listening to today's episode. We are so glad to have you as part of our Sugar Daddy community. If you learned something today, please remember to subscribe, rate, review, and share this episode with your friends, family, and extended network. Don't forget to connect with us on social media at the Sugar Daddy Podcast. You can also email us your questions you want us to answer for our past the sugar segments at thesugardaddypodcast at gmail.com or leave us a voicemail to our Instagram.
SPEAKER_03:Our content is intended to be used and must be used for informational purposes public. It is very important to do your own analysis before making any investment based upon your own personal service standards. We should take independent money to advise from a license professional and connection with or independently research and verify any information you find in our podcast and which to rely upon whether for the purpose of making an investment decision or otherwise.
