Inheritance — pay down debt?
I’m 63 years old, live in Cook county, and will be getting approximately $26,000-$30,000 dollars from my portion of the sale of my mothers house. We have a $60,000 home equity loan. What would you suggest be the wisest thing for me to do with the money? I also don’t know how much to hold back for taxes. Thank you.
Terry Says
You will not owe any taxes on this inheritance! (Taxes are paid by the estate if it is well over $11 million — so that is not an issue.) I don’t know what other debt or savings you have. But I do know that the rates on that home equity loan will soon rise. So paying it down with this inheritance would seem to be a great idea — unless you have more expensive credit card debt. If that’s the case, pay down the credit card balances and take the cards out of your wallet!
