By Janet Gray
Coming into an inheritance can feel like a gift and a burden at the same time. Here’s how to slow down, think clearly and make choices that you’ll feel good about for years to come— with no regret.
When a parent or loved one passes away and leaves you money, the feelings that come with it are rarely simple. Grief, guilt, gratitude—sometimes all at once. And somewhere in the middle of all that emotion, there’s suddenly a sum of money sitting in your account, and people around you want to know what you’re going to do with it.
If you’ve recently inherited money, or think you might one day, the most important piece of advice anyone can give you is this: Don’t do anything right away. Seriously. Nothing. Give yourself at least 90 days before making any major financial moves.
Cool it: The 90-day rule
Financial planners who work with people navigating inheritances often talk about a “cooling off” period. Our brains process grief and financial decisions using very different wiring, and trying to do both at the same time tends to lead to choices we later wish we’d thought through more carefully.
In the meantime, park the money somewhere safe and boring. A high-interest savings account (HISA) or a short-term GIC works just fine. It’s not going anywhere. The stock market will still be there in three months. Boring is good.
You get a car and you get a car: Watch out for the “gift to everyone” impulse
One of the most common patterns financial advisors see after an inheritance? The sudden urge to be incredibly generous—with your kids, your grandkids, your neighbours, your favourite charity, sometimes even near-strangers. It feels good to give, and it can feel like a way of honouring the person who left you the money.
There’s nothing wrong with generosity. But before you start writing cheques, ask yourself: Am I in a position where I don’t need this money now or later? If you’re in your late 50s or 60s and haven’t yet fully funded your retirement, gifting a large chunk of an inheritance can leave you financially vulnerable later. Secure your own future first.
Think about what you actually need
Before you dream about a vacation property or a new boat, sit down and take an honest look at your financial picture. Do you have high-interest debt (like most credit cards are)? Pay it off first. It’s one of the best guaranteed returns you’ll ever get. Is your TFSA or RRSP sitting with room to contribute? An inheritance is a rare opportunity to make a meaningful catch-up contribution.
It’s also worth thinking about what the money means for your own estate. How do you want to pass things along to the people you love? An inheritance can be the nudge that finally gets you to update your Will or review your beneficiary designations—something most of us put off far too long.
Get help, but choose wisely
Once you’re ready to make decisions, working with an advice-only or a fee-for-service financial planner—someone who charges by the project or by the hour—can be worth every penny. They’ll help you look at your full picture: Retirement income, tax implications, estate planning, and how the inheritance fits into everything, including your goals.
Be a little wary of advice that seems overly eager to invest your money quickly. There’s no product out there so extraordinary that it can’t wait a few weeks while you do your homework.
Honour the legacy, your way
Many people want the money to “mean something”—to reflect the values of the person who left it. That’s a beautiful instinct. Maybe it’s a donation to a cause your parent loved. Maybe it’s funding an experience for your family that they would have adored. There’s real emotional value in that kind of intentional spending.
Just make sure the meaningful gestures come after you’ve taken care of the practical ones. The best way to honour someone who spent a lifetime working hard is to make sure their gift actually changes your life for the better, not just for a season.
The best way to honour someone who spent a lifetime working hard is to make sure their gift actually changes your life for the better.
HELPFUL RESOURCES
Tax & Government
Canada Revenue Agency — Tax rules on inherited RRSPs, TFSAs, and estates canada.ca/en/revenue-agency.html
Financial Consumer Agency of Canada — Plain-language guides on managing windfalls. canada.ca/en/financial-consumer-agency.html
Finding a Trustworthy Advisor
FP Canada — Directory of Certified Financial Planners across Canada fpcanada.ca/planner-directory
FPAC — Find a financial planner near you fpassociation.ca/
Investing & Financial Literacy
GetSmarterAboutMoney.ca — Unbiased investing guides from the Ontario Securities Commission
MoneySense — Canadian personal finance with strong inheritance and retirement coverage
Janet Gray, CFP is an
advice-only financial
planner with Money
Coaches Canada.
Based in Ottawa,
she serves clients
Canada-wide.
https://moneycoachescanada.ca/about/Janet-Gray/
