What would you do with 42 000 Usd ?

Question

I'm about to receive that much money from the car insurance company in Canada, after my mom's death in a car accident. What should I do with my money?!

Answer 1

17,647 bags of yummy Cheetos.

Answer 2

First, check with an accountant to see if the money's taxable. it's awful enough that your mom died, but you don't want the IRS sending you a bill two years from now because they just caught on that you did not report is and were supposed to. If it's taxable, have the accountant help you make estimated tax payments to the IRS and State, so you don't end up owing a bucket on April 15th.

Now, as for the rest of the money, this is what I'd do, personally. If you have debts, pay them off. Stick some of it in a retirement or savings account, if you have a kid, a college account. Buy yourself one great thing that you'd never be able to afford, and take a nice vacation. That way, you've done something for yourself, as well as something practical. I can't imagine your mom would've wanted any different for you.

Answer 3

Assuming that she is still married to your father:
Take the money and her half of the assets that are covered under the $2 mil. marital exemption and set it up in a trust. make sure this trust allows your father full access to the assets of the trust. This way, when your father passes, you only have to worry about estate taxes on his half of the assets. Her assets, regardless of how much more they are worth when your father passes, are not taxable since they are already protected by the trust her half of the marital exemtion has already been used. Doing it this way allows you to use the marital exemption twice rather than jsut once.

Regardless, you want to use the money to purchase assets out of your mother's taxable estate. This will help you avoid paying higher estate taxes on everything she owns that is passed to you.

After that, whatever money is left to you when the estate is settled, if you have a 401K or other retierment plan, then max it out and pay as much as you can to it. If you have any kids, begin a 529 plan for their college education. If not, then take whatever is left after you max out your 401K/IRA and pay off all your current bills. Anything after THAT then it all depends on what you want to do...invest in long term items, short term items, etc.

Answer 4

If you have a good job ,and can afford a mortgage payment , get some real estate. Buy yourself a condo , or small house.Just make sure its big enough for a roomate to help out with the payments.If you aren't consistently employed invest in bonds.Do not buy stocks. If you don't know what you are doing you will lose everything.

Answer 5

I would put 20,000 on a cds, another 10,000 pay off all my families bill for about year and save the rest

Answer 6

Pay off all bills and save the rest. Don't forget you may have to pay taxes on all that.