How should I divide an inheritance between savings, retirement, and future goals?

For this planning decision, a written plan can then allocate the inheritance across cash needs, debt, retirement accounts, taxable investing, and personal goals. When the options are compared, a reasonable first step is to keep the funds secure while confirming taxes, estate paperwork, emergency reserves, high interest debt, and near term goals. For the household plan, a written plan should show the cash reserve, taxes, time horizon, downside risk, and effect on other goals before the money is committed.