How to enter Inheritance

I am going to get an inheritance from my grandmother, she wants to give it to me before she dies which is awesome! Everyone wins right?

In any case I'm unsure how to enter it into YNAB.

I'd like to immediately setup my 1 month buffer, and pay off my 1 credit card.
It shouldn't be added as an income correct?
The rest should end up in some type of savings category (new car, emergency, etc.)

Any help would be appreciated

Comments

  • WateryTartWateryTart Posts: 1,054Member
    Income (to me) means "entering the budget" so if I were to get an inheritance, I would enter it as income.  Then budget into categories, as usual.
    shymi
  • JoelJoel Posts: 9,525Member, Beta Tester, Beta Moderator
    enter it as income, and then budget it to the categories (jobs) you want it to have. Remember, budgeting to zero does not mean spending to zero.
  • herisffherisff Posts: 354Member
    It is income. Just be sure to categorize the funds so that it doesn't get frittered away! (I know that one well...)

    Hopefully, your grandmother is aware that there may be tax consequences to HER, not you. There's a limit on how much can be gifted to family (I think it's $10,000?) per year, and if she goes over that she may need to pay taxes. So depending on what you receive, you may want to have a talk regarding the tax issue. Congratulations on having such a generous family member!
    shymi
  • JoelJoel Posts: 9,525Member, Beta Tester, Beta Moderator
    herisff said:
    It is income. Just be sure to categorize the funds so that it doesn't get frittered away! (I know that one well...)

    Hopefully, your grandmother is aware that there may be tax consequences to HER, not you. There's a limit on how much can be gifted to family (I think it's $10,000?) per year, and if she goes over that she may need to pay taxes. So depending on what you receive, you may want to have a talk regarding the tax issue. Congratulations on having such a generous family member!

    It's $14,000 per year. It used to be $13,000 per year but was increased this year.
  • herisffherisff Posts: 354Member
    Joel said:
    herisff said:
    It is income. Just be sure to categorize the funds so that it doesn't get frittered away! (I know that one well...)

    Hopefully, your grandmother is aware that there may be tax consequences to HER, not you. There's a limit on how much can be gifted to family (I think it's $10,000?) per year, and if she goes over that she may need to pay taxes. So depending on what you receive, you may want to have a talk regarding the tax issue. Congratulations on having such a generous family member!

    It's $14,000 per year. It used to be $13,000 per year but was increased this year.
    Thanks for that - I almost put $14k, but then ... brain fog hit! I knew I was safe at $10k :-P.
  • HackmodfordHackmodford Posts: 20Member
    For future reference I just added it as income...
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