savings

7 money afflictions from inherited wealth

I'm everyone's favorite lender
Call me Mr. Moneybags: I'm everyone's favorite lender © Ydefinitel/Shutterstock.com/Shutterstock.com

Blouin says she gets asked "fairly often" for a loan, sometimes for a large amount. "A friend recently asked for money and although I had doubts, I realized he really is in a bind," she says. "I lent him $1,500 and he hasn't paid it back. I could keep pestering him, but eventually, I just wrote it off."

One of the stickier areas for inheritors is when they've suddenly become everyone's favorite bank. On the other hand, says Blouin, you may be in a position to genuinely help someone, so plan ahead for how you will respond when asked for money.

"There's no straight-up answer, but you have to be honest" when someone approaches you for a loan, says Flurry. Leave emotions out of it and remember to take care of yourself first, he adds. This is where a plan can really save your neck. To avoid making a loan, you can explain that the money is earmarked for other expenses, specific charities, or that it's locked up in trusts. But if you do decide to lend money, he adds, make sure each party is clear on the terms and have them in writing.

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