If you have received an inheritance, it would be wise to give some thought to your financial options.
It might be tempting to spend all of the money, but it will serve you better in the long run if you:
- Pay off any debts;
- Set aside some savings for future needs. For example, you might want to invest the money in a Registered Retirement Savings Plan (RRSP) or other registered savings plan, and
- Keep some money in a separate account for emergencies.
Be sure to meet with your financial advisor to re-visit your investment plans with your new inheritance in mind.
If you have any tax concerns, consult a tax professional.
If you would like to leave an inheritance to your children, be sure to look at and update items such as your will, which includes naming an executor. Let your children know where your will and other important records are kept, and who you recommend they speak to for information and advice. Let them know if you have a preference for how they will spend the inheritance down the road. For example, you might want them to save it for their education.