Unexpectedly inheriting 3 million. What to do?

I've come across similar post like this a few times in the past. Now it's my turn to ask for some guidance.

I'm 39m, wife 34f with 1 kids, living in a HCOL area.

I'm expected to receive an inheritance from my estranged dad that will total approximately ~3-4 million range. How he made this money I do not know.

My parents divorced when I was young. I lost contact with my dad; I attempted, but it was always one-sided. My mom worked odd-end jobs to support my 2 siblings and I. We grew up in proverty. I hustled to get to where I am today.

I've been a nurse for about 15 years. The last 4 years being part-time and per-diem. My wife is also a nurse for about 6 years working part-time. The last few years we both picked up local nursing travel contracts while maintaining our part-time position. The money we made really helped get us to where we are today. Our total gross income is about 180-200k. We also have two rentals that cash flow about ~600-700/month

Our assets are:

My house mortgage ~10k @2.65%,market value ~900k, almost paid off, primary residence

401k ~400k, maxed out yearly

Roth IRA ~ 70k, maxed out yearly

My HYSA ~20k, personal spending

My investment ~200k (VTI/VXUS 75/25%)

Wife's condo mortgage ~330k @2.85%, market value ~550k, cash flow ~400/month

401k ~80k, recently started to maximize

Roth IRA ~20k, recently started to maximize

Her HYSA ~unknown dollars

Her investment ~20k (VOO, Tesla, Bitcoin), wife doesn't invest anymore;I primarily do now.

Joint rental mortgage ~400k @3.98%, market value ~600k, cash flow ~250/month

Joint HYSA ~60k (emergency fund,vacation,etc.)

529 ~3k

Debt: Mortgages ~720k/total

Auto loans ~55k

Wife's student loans ~30k

Monthly expensive: Mortgages ~7k/month (hoa & insurance)

Auto ~900/month (payment & insurance)

Utilities ~ 300/month (water/trash, gas, internet,cell phone)

Misc. bills ~300/month (gym, pet, subs)

Credit cards ~500-3000/month

Future: I still enjoy being a nurse. Staying part-time and leaving my per-diem would be ideal. I'd continue to work until my body tells me no more. My wife, however, hates nursing. She only got into the field because her parents forced her. Our plan is for her stay home and care for our kid. We're both comfortable with our lifestyle and manage our finances well. I don't have expensive hobbies. My wife likes more luxurious things, but it is by no mean excessive (expensive home decor). We do splurge on travel; usually 2-3 trips/yearly. What we eventually wanted to do was purchase our "forever home". Property values in the area we look at range between 1.3-1.7 million. Before finding out about the inheritance our plan was to eventually sell some or all our properties and upgrade. Now we're not sure what to do. We weren't planning on retiring early,but now with the inheritance retirement seems closer in the horizon than we anticipated. My hopes is to purchase a new place and retire within the next 10-15 years.

What would reddit do in our shoes?