Inheritance can destroy a family or be a life-changing gift. Here's how I advise my clients as an estate-planning attorney.

• Dana Blue is an estate-planning attorney who helps families navigate assets after a loved one dies.
• Inheritances can create an opportunity to purchase a house, return to school, or run a business.

This as-told-to essay is based on a conversation with Dana Blue, a 44-year-old estate planning, probate, and real estate attorney in Philadelphia. The following has been edited for length and clarity.

When I started my law practice in 2017, I drafted simple wills for free. Since then, I've expanded my practice to offer trust-centered estate planning and probate administration services.

I value the opportunity to support families during their times of grief, but sometimes, when you mix grief, money, and family dynamics, it can be a very volatile cocktail.

I work closely with heirs or beneficiaries to navigate them through the probate process. Once the assets are distributed, clients are often left with money, property, or a business. Some people inherit just a few thousand dollars, and others walk away with life-changing money.

After almost a decade of being an attorney, I've witnessed the variety of ways inheritance has changed people, both positively and destructively.

It can bring on newfound wealth, but it might come with more responsibilities

When you inherit a business, learning its operational, financial, and legal aspects is crucial. I've seen cases where people inherit their family's business with no experience and bankrupt it in just months due to poor financial management.

If you plan to keep the business within the family, developing a succession plan that details how the business will be transferred to the next generation, including training and mentoring the future leaders, is vital.

During the pandemic, a college-aged client's father died, and she inherited his printing business. Suddenly, she had to manage orders and payroll, pay vendors, and understand contracts, service delivery, hiring, and firing. Luckily, her father left a comprehensive succession plan, documented company policies and procedures for her to follow, and a list of trusted advisors to leverage for help.

It can change the trajectory of a person's life, especially their career

One of the most impactful ways I've seen people use their inheritance was for education. Using some of it to pursue a degree could be an investment that yields a higher payout over time.

About four years ago, I had a client who started college but withdrew after two years when she became pregnant. She wanted to return to school and earn her degree but couldn't re-enroll due to unpaid tuition bills and past-due student loans she couldn't afford to pay.

When she received an inheritance from her grandfather's wrongful-death lawsuit, she was able to pay off her debts and go back to school full-time without acquiring new student loan debt.

It can isolate you from family members

Inheritances can impact family members in different ways and even tear them apart. I've seen situations where a parent added only one child of many to their property deed. Sometimes, adult children may be excluded from the will altogether.

If you're the only family member or sibling who received assets, others may perceive that as unfair. This can yield mistrust, separation, or arguing within the family. Understanding these potential issues can help families plan better and communicate their intentions and expectations openly.

It can cause additional conflict if there's not a will

Family dynamics are disrupted the most when a loved one dies without a will. Without a will or trust, your state's intestate laws determine how your loved one's assets are distributed.

When an estate goes through probate, family members sometimes feel a loss of control because we must distribute the assets according to state laws and not how their loved one may have wanted. This can mean stepchildren and longtime unmarried partners are not entitled to receive any part of the estate.

A brother who moved away 20 years ago and cut himself off from the family will still receive his 50% inheritance. Examples like this empower me to keep telling as many people as possible that you must create your estate plan to ensure the people in your life get your assets in the way you want them to, not how the state will divide them.

It can cause a person to be consumed by sudden wealth syndrome

In some cases, when a person gets an inheritance and didn't have very much money before, it can cause them to be consumed by sudden wealth syndrome, my term for coming into a lot of money fast and spending impulsively or simply not understanding how to manage or invest it.

A few years ago, a client used a $90,000 inheritance from her grandmother to buy her first house in cash but didn't consider the cost of rehabbing or maintaining it within her salary means. The house needed immediate repairs on top of homeowners insurance, maintenance, and taxes.

She had a pool added to the backyard but was shocked by the cost of maintaining it and her increased insurance premium. She bought a pre-owned Range Rover that quickly depreciated and was draining her inheritance with repair costs. At one point, she was considering filing for bankruptcy because she was essentially using credit cards to maintain her post-inheritance lifestyle.

If you're creating an estate plan and know that a family member might be susceptible to sudden wealth syndrome once they receive the assets, you can set up a trust with specific conditions or staggered distributions to manage how and when they receive them.

Meet with professionals who can help you plan for the future to avoid negative consequences

If you just found out that you'll be receiving an inheritance, consulting with estate attorneys and financial planners can be helpful. You can then make informed decisions about your inheritance, ensuring it's managed and preserved effectively for your and your family's future.

If you have children, you might be able to use some of the money to establish their future generational wealth by putting some in vehicles like a 529 college savings plan, funding a trust, or purchasing life insurance policies.

Receiving an inheritance can be an overwhelming and daunting moment in your life. Take the time to do estate planning and encourage family members to do the same. It will ensure their legacy is mapped out in the best and most beneficial way possible for the loved ones they will leave behind.

Want to share your inheritance story? Email Lauryn Haas at lhaas@businessinsider.com.