What to Do When You Come Into a Large Sum of Money: A Guide to Making Strategic Decisions

Whether it’s the result of a legal settlement, an inheritance, the sale of a business, a large work bonus—or even a lottery or court case win—coming into a significant amount of money can feel surreal. It can also bring up a lot of questions: What should I do with it? Who do I trust? Should I spend, save, invest—or all of the above?

At Winstone Wealth Partners, we’ve guided many individuals and families through this type of transition. Some never thought of themselves as “wealthy” before. Some had never worked with a financial advisor. And almost all of them wanted to make sure they did the right thing with their money.

There’s no one-size-fits-all answer. But we’ve developed a simple framework to help people feel more grounded and in control during this kind of financial turning point.

Step One: 5 Things to Do Immediately After Receiving a Large Sum of Money

Before you do anything with your money, it’s important to pause, gather the facts, and help protect yourself.

1. First – Take a Breath

Avoid making major financial decisions in the first few days or even weeks. You don’t have to have all the answers right now. Give yourself space to process what this money could mean for your life and your goals. This can help alleviate some pressure and also help you avoid mistakes many people who come into large sums of money unfortunately tend to make.

2. Park the Money Somewhere Safe (but Strategic)

Don’t leave it sitting in a standard checking account, which typically don’t accrue much interest. A high-yield savings account or short-term cash equivalent can give you flexibility while keeping your money working just a little harder for you in the short term. Especially when you are talking about a large sum of money, this can actually be fairly significant.

3. Tell As Few People As Possible

This isn’t about secrecy—it’s about protecting your headspace and clarity. We’ve seen clients overwhelmed by unsolicited advice, requests, or guilt. Until you’ve made a plan, it’s okay (and wise) to keep your new financial position close to the chest.

4. Start Building a Team

You’ll want to connect with a trusted financial advisor, tax professional, and likely an estate planning attorney quickly. A good advisor can help you understand your options, outline the steps ahead, and act as a sounding board before you make any big moves.

5. Do a Quick Risk Assessment

Are you properly insured now that your wealth has increased? Could this change open you up to new risks—liability, fraud, or exposure? We often help clients evaluate their insurance coverage, privacy boundaries, and legal protections right away. Ask your new advisor for help in this area.

Step Two: What to Do in the First Few Weeks

Once the dust has settled and you’ve taken the initial precautions, it’s time to get organized and start shaping a plan.

1. Clarify Any Tax Implications

Different types of lump sums come with different tax rules. Is this money fully yours, or will part of it be taxed next April? We work closely with CPAs to make sure our clients aren’t caught off guard when it’s time to file.

2. Organize Your Money with a Purpose-Driven Strategy

As you begin shaping your financial plan, look for an investment philosophy that feels right for you—one that helps you stay organized, aligns with your values, and adapts to both market shifts and life changes.

In our wealth management practice, we use a framework called The Winstone Way, which separates money into two key “buckets”: the Income Bucket, designed to preserve capital and provide reliable cash flow for short-term needs, and the Growth Bucket, which focuses on long-term appreciation through tactical, research-driven investing.

This kind of structure can help bring clarity to your financial life—so you know what’s supporting your lifestyle today, and what’s working toward your goals for tomorrow.

3. Review or Create Your Estate Plan

Has your will or trust been updated recently? Do your beneficiaries reflect your current wishes? Do you even have these things in place? If you don’t have an estate plan, now is certainly going to be the time to create one. This is especially critical if you have children, dependents, or want to leave a legacy through charitable donations, etc.

4. Define Your Values & Priorities

Before you invest or gift anything, think about what this money is for. Is it about feeling more secure in your financial future? To be generous towards your community? To support your family for generations to come? To be able to fund a certain lifestyle for yourself and your family? Naming your priorities helps prevent decision fatigue and missteps later on.

5. Start Talking to a Real Person (Not Just Google)

It’s tempting to ask ChatGPT (we get it!) or search online for advice—but please remember that your situation is unique. We often hear, “I didn’t even know what questions to ask until we started talking.” That’s exactly why seeking out professional guidance (from a real human!) matters at this stage.  

Step Three: 5 Ways to Put Your Money to Work (Thoughtfully)

Now that you’ve built a solid foundation, you can start exploring the best ways to use this money—based on your goals and your values.

1. Pay Off Debt—Strategically

It might make sense to pay off high-interest debt like credit cards or personal loans. But we also help clients think through when it’s not necessarily wise to pay off lower-interest debt like home mortgages or student loans in full—especially if that money could be working harder elsewhere. We would be happy to walk you through a full explanation for this with an analysis of your existing debts.

2. Save or Invest (with a Plan)

Don’t just “throw it in the market.” Investing requires a clear strategy aligned with your time horizon, risk tolerance, and goals. Whether it’s long-term retirement growth or a mix of objectives, a good advisor can help you build a disciplined investment plan.

3. Support Loved Ones or Future Generations

Want to help with a child’s or grandchild’s education? Things like a 529 plan may offer tax advantages. Want to pass wealth down responsibly? We can walk you through setting up trusts, gifting strategies, or family education about money. For many of our clients, coming into a significant amount of wealth means they are looking to generations beyond their own, and we find a great amount of fulfillment in helping our clients navigate what this can look like.

4. Give to Causes That Matter to You

Whether it’s a one-time gift or the launch of your own charitable fund, we can help clients structure giving in ways that are both meaningful and tax-efficient. Donor-advised funds, charitable trusts, and private foundations are all tools worth exploring.

5. Enjoy Some of It (Yes, Really)

This is important. Go on that trip. Renovate your kitchen. Invest in your hobby. Get the beach house you’ve always wanted. Part of being a good steward of your money is allowing it to improve your life. We love helping clients figure out how to enjoy their wealth now without jeopardizing their long-term goals.

Final Note: Talk To An Advisor Sooner Rather Than Later

If your financial situation has recently changed, it doesn’t help anyone for that money to just sit idle. We can help you explore how to make it work for you—thoughtfully, strategically, and on your terms.

Booking a call is easy, and there’s zero pressure. Even if we’re not ultimately the right fit, we’re happy to be a helpful first step. We’ll help you get your bearings, talk through what’s possible, and answer the questions that Google and AI just can’t personalize.

You have nothing to lose—and potentially a whole lot to gain—by talking with someone who does this every day. Let’s figure out your next steps, together.

You can easily book a complimentary intro call with us by clicking here.