<prompt> Human: Short background: Both in late twenties.We owe 380k on our house.My income is 110k, hers is around 60k.She wants to start a small business hair salon and so far we have about 20k put aside for that purpose. She had planned to obtain a small business loan to finance that endeavor as well.We have only known about this for a day, so our heads are still sort of spinning. It feels very morbid to think about this stuff as our loved one is dying, but he encouraged us to make plans. Our thinking was along these lines:100k towards the purchase of existing business or renovation of new commercial space.200k or more? towards our mortgage.50k emergency fund.Then hire someone to help us intelligently invest the remainder. The only investments weve made in our lives have been 401ks, and dealing with a lump sum like this is very overwhelming. bonus question: What is the tax obligation on something like that? The person leaving the money to us is very critically ill, but also willing to give it to us as a gift as well. Would that alleviate the tax burden? I know there is a 14k limit on that, but then also there is some kind of lifetime gift limit? Any additional info would be appreciated.ANSWERING SOME COMMON QUESTIONS: Mortgage is Fixed at 4. We are not spendy people and would never blow money on silly things. I make 110k and drive a 1998 Civic :P We would much rather set ourselves up in the long term than waste this opportunity. Business is going to happen but have no plans to rush it.  <response>: Dont fall into the trap of formulating a plan, then letting it fall away over time. We inherited some money a few years ago, decided to spend around 10 of it on some home improvement and invested the rest. It becomes very tempting to dip into it time and again as things pop up. Be prepared mentally for this, and make sure you discuss it with your wife.I like to think that once-in-a-lifetime windfalls should be used for once-in-a-lifetime things, like college or retirement. Or maybe a business in your case. If you buy a car or something, the money you spend will essentially be gone in a few years. 