|
Paying off her highest-interest debt for sure, she's looking at an instant guaranteed 11-25% return, no investment can match that. If she has no savings (which I'm guessing she does not, given the credit card debt), I would probably split the remaining 11 grand between paying off some of the 6.8% student loans and establishing an emergency fund. But more important than any of that is learning to budget and not live beyond your means, and that includes not giving money you don't really have to family. Without that, the windfall will do nothing in the long run to improve her financial situation.
|
#
¿
Sep 25, 2014 19:09
|
|
|
|
| # ¿ May 21, 2024 20:59 |
|
|
The first ~5 million of an inheritance is not taxed:quote:If an asset is left to a spouse or a Federally recognized charity, the tax usually does not apply. In addition, up to a certain amount varying year by year, amounting to $5,250,000 for estates of persons dying in 2013[2] and $5,340,000 for estates of persons dying in 2014[3] can be given by an individual, before and/or upon their death, without incurring federal gift or estate taxes.[4]
|
|
#
¿
Sep 25, 2014 19:15
|
|
|
Deception posted:For some reason I thought throwing 10k or more into a bank, would incur a tax. Thank you for stating the obvious in the wiki I should have looked up ha, that's a sigh of relief.
|
|
#
¿
Sep 25, 2014 19:21
|
|