What Would You Do If You Found $200,000 Cash In A Deceased Loved One's Home? Here's What Suze Orman Would Do

It's not something most people expect to find while cleaning out a loved one's home, but it happens. One listener of the "Women & Money" podcast recently asked financial expert Suze Orman what to do after discovering $200,000 in cash stashed away by her deceased father.

The listener explained that her father didn't trust banks and saved his paychecks in cash, hiding them around the house over time. Now, she's faced with a major question: What's the right way to handle this money?

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Here's how Suze Orman responded.

Step 1: Don't Let the Money Sit in Cash

Orman began by stressing the opportunity cost of keeping such a large sum in cash. "You're missing out on about $10,000 a year currently in interest," she noted.

Letting the money sit at home not only limits its earning potential — it also puts it at risk of theft or loss. That's why Orman believes the safest next step involves depositing it. But that's not as simple as walking into a bank with stacks of cash.

Step 2: Talk to the Estate Lawyer

Before heading to the bank, Orman recommends contacting the attorney handling the estate. If there's no lawyer involved, she advises hiring one, even for a short consultation. They can guide you on how to legally deposit the money and ensure everything is above board.

Why the caution? Large deposits — especially over $10,000 — trigger federal reporting requirements. Banks are required to report these transactions to government agencies as part of anti-money-laundering rules.

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Step 3: Be Transparent With the Bank

Orman suggests going to a bank where either you or your loved one had an account. Bring documentation like the death certificate, the will or trust, and any paperwork that shows you're the beneficiary of the estate.

"Just come clean," she advises. Explain how and where the money was found, and that you're trying to handle it responsibly. The bank may have questions, but full transparency can help avoid future issues.

Step 4: Deposit the Money Into the Estate Account

Rather than depositing the funds directly into your personal account, Orman recommends opening a bank account in the name of the estate. This keeps everything tied to the deceased person's financial affairs and can simplify the probate process, if applicable.

Once the cash is deposited into the estate account, it becomes part of the official estate assets. From there, you or the executor can distribute it according to the terms of the will or trust — or as directed by the probate court.

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Taxes Could Be Involved

Orman also cautioned that depending on your situation, the IRS might treat the money as part of the estate and expect a portion in taxes. Or, they might accept your explanation and move on. Either way, working with a lawyer and possibly a tax professional can help ensure you follow the right steps.

If you find a large sum of cash in a loved one's home, don't panic — but don't ignore it either. Follow Orman's lead: seek legal guidance, stay transparent, and take the right steps to protect yourself and the money.

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