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Estate Planning - Handling a Family Estate

Q: " My father passed away two months ago and I will inherit a sizeable estate.  Do you have any advice for me as I wait for the settlement?  I still can't believe that he is gone and I will soon be responsible for handling all of the possessions and money that he worked for his entire life!  Quite frankly I feel my knowledge and experience is inadequate."

A:  Acknowledging how you feel and seeking advice is an important first step.  My suggestion is that you allow yourself as much time as you need to grieve and come to terms with the new position you find yourself in.  When you receive the inheritance, it may be wise to temporarily place it in a minimal risk savings vehicle such as a GIC or Money Market fund.  That takes away any temptation to act impulsively and gives you the time you need to make responsible decisions about its future investment.

If your inheritance includes real estate, stocks, bonds, collectables, etc, you can carefully examine what you want to keep and what you want to liquidate.  Some things may be kept for sentimental value while other assets might better be converted into cash.  Inheriting a business fits into this category.  Unless you have the necessary skills to carry on the business, it may be better to sell it as a going concern or to hire professional management.

Receiving an inheritance changes your personal financial situation and triggers the need to review your own estate plan.  This should include the reassessment of your assets and liabilities, life insurance requirements, tax implications as well as the updating of your own will.

A qualified financial consultant can show you alternatives from which to develop a strategy for managing your newly acquired wealth.  They would be happy to help you assess your new-found financial situation and to help you devise a suitable investment portfolio.

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~ Dorothy Powell completed a degree in Physiotherapy at the University of Alberta.  She went on to own and manage her own businesses.  She takes a personal interest in family management and estate planning, drawing from her life experiences as a single mom.