Just deposit it. Things might go quicker and your bank will appreciate it if you were to call them ahead of time and tell them that you're bringing in a large cash deposit. Any transaction with your bank of $10000 or more will be reported to the IRS, but if it's a legal inheritance that should not be a problem.
If you received a gift or inheritance, do not include it in your income. However, if the gift or inheritance later produces income, you will need to pay tax on that income.
Another key difference: While there is no federal inheritance tax, there is a federal estate tax. The federal estate tax generally applies to assets over $13.61 million in 2024 and $13.99 million in 2025, and the federal estate tax rate ranges from 18% to 40%.
Medium inheritance ($100,000)
If you receive a larger inheritance, first consider the recommendations above—fund an emergency savings account or pay off credit cards and loans. You can also use a portion of the money to pay off all or part of your mortgage or pay down student loan debt.
Deposit the money into a safe account
Your first action to take when receiving a lump sum is to deposit the money into an FDIC-insured bank account. This will allow for safekeeping while you consider how to make the best use of your inheritance.
With $200,000 in your retirement savings and factoring in the average annual rate of return between 10–12%, you'll have between $20,000 and $24,000 to live off of each year.
That said, an inheritance of $100,000 or more is generally considered large. This is a considerable sum of money, and receiving such a windfall can be intimidating, especially if you have limited experience managing excess funds.
Methods Executors Use to Mail Inheritance Checks
These checks are typically issued after the probate process is complete and all debts and taxes of the estate have been settled. Executors are responsible for ensuring these checks are delivered securely and efficiently after the probate process.
Many high-yield savings accounts from online banks offer rates from 2.05% to 2.53%. On a $250,000 portfolio, you'd receive an annual income of $5,125 to $6,325 from one of those accounts. Bank certificate of deposit (CD).
Inheritance checks are generally not reported to the IRS unless they involve cash or cash equivalents exceeding $10,000. Banks and financial institutions are required to report such transactions using Form 8300. Most inheritances are paid by regular check, wire transfer, or other means that don't qualify for reporting.
A financial advisor can help you put an estate plan together to protect your assets for your family. The best place to deposit the large cash inheritance is in a federally insured bank or credit union account. Putting the inheritance in a savings account is a good option for the short term.
In 2025, the first $13,990,000 of an estate is exempt from federal estate taxes, up from $13,610,000 in 2024.
To turn $500,000 into $1,000,000, you need a sound investment strategy. Diversifying your investments across a mix of asset classes like stocks, bonds, and real estate can help.
It generally takes about two business days for a check to clear, but this may vary depending on the check amount and the specific bank or credit union's policies.
This is a huge amount of money, and yet it is not even close to the amount someone your age would need to retire. (However, if you choose to, it could get you comfortably into your first home, which might be a good investment for you.)
If you inherit a large amount of money, take your time in deciding what to do with it. A federally insured bank or credit union account can be a good, safe place to park the money while you make your decisions. Paying off high-interest debts such as credit card debt is one good use for an inheritance.