What should I do to honor my parents with my inheritance?

Invest it wisely in mutual funds or something at your bank. If it is enough, use for down payment on a house.

My parents have been doing the same thing (gifting money to kids while still alive) and we do this new-fangled thing that works pretty well called COMMUNICATION.

My parents' priorities really are no different than my priorities.

Invest for retirement

Higher education for adult kids or grandkids

Home purchase (or invest in home upgrades/remodel)

My parents also value charitable giving, but consider that to be separate and private. They do not funnel that money through me.

I would never squander their gifts on things like vacations or cars unless they told me that's what the money is specifically for. They get peace of mind knowing I'm set for the future and will not have to work until I'm dead.

No one here knows what your financial situation is or what your parents' preferences are.

So please, don't ask strangers on Yahoo what you should do with the money. You honor your parents by talking to THEM about this.

By doing exactly what they wish, showing them your fiscal responsibility (save every penny). If you need help in that arena, seek it from a financial planner. You could even ask for a referral from your parent's financial planner too. Secondly, you could do everything they ask and make suggestions of things you could do for them, letting them choose.

It isn't an inheritance until they are dead something is wrong here and why are YOU in charge??

Save it for when you really need it. Like if you have an emergency. Or save it for a deposit on a house. Don't squander it just because you have it now when you will need it later.

Pass the wealth forward. They value family so, put the funds that you get into an account to pay for your children't college. Show them that they have raised you to care about the future of your/their family.

If you don't have kids yet, you can still set aside a special account to be used if/when.

Make sure you keep it aside for them in case they need it. A lot of unplanned expenses can make things go sideways real quick.

You could fund their funeral