So, your great-aunt Mabel left you an unexpected chunk of change. First off, our condolences – and congratulations? (It’s okay to feel both sad and excited – money emotions are complicated!)
Before you start browsing luxury car websites or planning that round-the-world trip, let’s pump the brakes and talk about making smart moves with your inheritance. Here’s what you need to know to handle your windfall like a pro.
Take a breather (Seriously!)
Remember that time you bought those designer shoes on impulse and regretted it a week later? This is like that, but with much bigger stakes. Give yourself at least a month before making any major decisions. Your inheritance isn’t going anywhere, and neither are those tempting investment opportunities your cousin’s friend’s neighbor keeps telling you about.
Get the tax situation sorted
Here’s some good news: in Canada, most inheritances aren’t taxable! But (there’s always a but) the estate might have already paid taxes before you received your share. If you inherited investments or property, you’ll want to understand any potential tax implications before making your next move. A chat with a tax pro can save you headaches later.
Deal with debt (The not-so-fun part)
We know, we know – paying off debt isn’t as exciting as planning a kitchen renovation. But think of it this way: clearing high-interest debt is like giving yourself an immediate return on investment. Your future self will thank you for tackling those credit card balances or student loans.
Think long-term (while having some fun)
Consider the 90/10 rule: Put 90% of your inheritance toward long-term financial goals (retirement savings, emergency fund, education) and use 10% for something enjoyable. This way, you’re being responsible while still honoring great-aunt Mabel’s memory with that spa weekend you’ve been dreaming about.
Get professional help (The financial kind)
Money managers aren’t just for the ultra-wealthy. A financial advisor can help you create a solid plan for your inheritance, especially if you’re dealing with a significant sum. They can help you navigate investment options, tax strategies, and maybe even retirement planning – all while speaking human, not finance-robot.
Don’t broadcast it
While it’s tempting to share your good fortune on social media, keep this news in your inner circle. Suddenly, everyone from your high school lab partner to your dog groomer might have an “amazing investment opportunity” for you. Politely decline and stick to your plan.
Remember, inheriting something can be a bittersweet experience, but with a little thought and planning, you can make the most of it. Whether you’re investing, paying off debts, or just treating yourself to something nice, take it step by step.
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Book an appointment with us today.
Note The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is for informational and educational purposes and it is not intended to provide specific advice including, without limitation, investment, financial, tax or similar matters. The views expressed are those of the author and not necessarily those of Aviso Wealth.
Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc.. Online brokerage services are offered through Qtrade Direct Investing. Mutual funds and other securities are offered through Aviso Wealth. Qtrade Direct Investing, Qtrade Guided Portfolios and Aviso Wealth are divisions of Aviso Financial Inc. Unless otherwise stated, mutual funds and other securities are not insured nor guaranteed, their values change frequently and past performance may not be repeated. Unless otherwise stated, mutual funds, other securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions.
