Our subject today is a little touchy, but it requires some discussion due to the effect in can have on your financial future and the quality of your relationships with family members. This episode is all about inheritance, including the best and worst ways you can deal with a life-altering influx of money and/or property.

The bottom line is that the inheritance recipient benefits from someone’s death. And that seems distasteful. Nobody wants to look greedy at the expense of a family member’s life. But because it seems distasteful, we don’t talk about inheritance very much. And because we don’t talk about it, some folks don’t handle it very well.

It helps to start with a little context. According to the Federal Reserve, the average inheritance today is about $46,000, although the vast majority goes to wealthy families and more than two thirds of households receive nothing. It’s also smart to keep in mind that your perception of a potential benefactor’s wealth is probably wildly off, so making assumptions about future inheritances is a big mistake when doing financial planning.

IBJ personal finance columnist Pete Dunn, aka Pete the Planner, has seen many recipients mishandle and waste inheritances, especially when they view them apart from their long-term financial strategies. In this week’s episode, Pete also shares his thoughts about how much you would need to inherit in order to immediately retire; why putting a big downpayment on a lake house might not be advisable; and why preventing family squabbles should be a key goal in planning to divide your assets.

The IBJ Podcast is brought to you by Taft.