What are the first financial steps after receiving an inheritance?

First, give yourself permission to wait; there is rarely a deadline that forces an immediate decision, so park the money safely and grieve before acting. Understand the tax picture: inherited cash is generally not taxable income to you, but inherited retirement accounts have their own withdrawal rules, and appreciated assets often receive a stepped-up cost basis, which affects future gains. Assemble a short list of priorities before deploying anything: a solid emergency fund, eliminating high-interest debt, funding tax-advantaged retirement space, and longer-term goals. Keep any inherited investment accounts intact until you understand the rules rather than liquidating in a hurry. For a significant sum, a fee-only fiduciary advisor and possibly a tax professional are worth the cost. Resist immediate lifestyle inflation, which is how many inheritances quietly disappear within a few years.