My dad left me $570,000 and his house in his will — now my stepmom and half-siblings are threatening to sue me for 'their share' of the inheritance. What should I do?

Understand the legal realities

A will is typically a legally binding document that expresses the wishes of the deceased. If your father’s will clearly states that you’re the sole beneficiary of the $570,000 and the house, that’s the starting point. Your stepmother and half-siblings may threaten to challenge the will, but their success in court depends on whether they can prove the will is invalid. Even if the will is valid, there may be state laws that provide a minimum amount be payable to a spouse, so in this case, the stepmother. If your half-siblings aren't explicitly excluded in the will, they may argue they were accidentally left out.

Grounds for contesting a will in probate might also include:

• Lack of “testamentary capacity:” Arguing your father wasn’t of sound mind when he wrote the will.
• Undue influence: Claiming someone pressured or coerced him to distribute assets in a way that he would have otherwise not done.
• Fraud or misrepresentation: Claiming your father was tricked or misled, or their signature was forged.
• Improper execution: Contending the will wasn’t signed or witnessed correctly.

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Get legal help, fast

If none of these conditions apply, their lawsuit may not hold up. But the possibility of a legal challenge remains, and an inheritance dispute can be time-consuming and expensive. In most cases, engaging an estate attorney to review the documents and confirm your legal standing is the smart move.

The attorney will review the will, verify its authenticity and proper execution, and assess whether there’s a legitimate claim from your stepmother and half-siblings. Your lawyer can advise on the potential financial burden if you go to court and and whether settling out of court might be cheaper and faster.

If you are also the executor, you will want to have a lawyer assist you with probating the will in any event.

Protect the assets now

While sorting out potential legal conflicts, ensure the money and property are secure. Don’t make large financial decisions before the legal dust settles. Determine the location of the assets and take steps to ensure they are in a secure bank account, and consider changing the locks on the house if it’s vacant to prevent unauthorized access.

Check the insurance on the house — it can be difficult to secure and/or maintain home insurance on a vacant property. If the stepmother remains in the house, you will want to catalogue items that are there, if they are in dispute.

Document everything: correspondence from your relatives, all will-related paperwork, and any legal communications. Organized records will assist your attorney if a lawsuit materializes.

And ask your attorney what else you should be doing. They know what will be important to resolve the matter and also what is important if the matter does go to court.

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Consider mediation or a settlement

It might make sense to resolve the dispute through mediation and avoid expensive litigation – especially if the stepmother or half-siblings have a plausible claim. Mediation can provide a structured negotiating environment, potentially preserving family ties, minimizing legal fees and keeping matters private. Even if you believe you’re legally in the right, a cost-benefit analysis may show that an agreement saves you money and stress compared to a protracted court battle.

What’s next for your money

If the court determines the will is valid and the assets are made available to you, it’s time to consider how to make the most of the inheritance.

Start by consulting a financial adviser — ideally a fiduciary who’s obligated to put your interests first. They can help you navigate inheritance and estate taxes, if applicable.

There is currently no federal inheritance tax and the federal estate tax exemption for people who pass away in 2025 is $13.9 million. As of November 2024, 12 states and the District of Columbia impose estate taxes and six states levy inheritance taxes, according to The Tax Foundation. Maryland is the only state that imposes both an estate and an inheritance tax.

Consider setting aside an emergency fund of three to six months of expenses and paying off any high-interest debt, such as credit cards or personal loans. Next, look to tax-advantaged retirement accounts like a 401(k) or IRA: Maxing out these accounts can accelerate your path to long-term financial stability.

With a windfall of $570,000, you can invest in a diversified portfolio of stocks, bonds, and exchange-traded funds (ETFs). Over time, this can grow substantially, helping you achieve long-term goals.

You could also consider the further diversification of your portfolio by considering real estate investment trusts, which allow you to invest in properties without the hassles of being a landlord. If you’re up for being a landlord, you might consider renting your father’s house provided it’s in good condition and in a desirable location. A financial adviser can help you navigate the various options and their tax consequences.