More Than Money: A 3-Step Plan for Navigating an Inheritance in Canada

The arrival of a significant inheritance can be surprisingly disorienting. The world sees a windfall; you feel the immense weight of a legacy placed in your hands.

It’s a sacred trust, and the "fear of screwing it up" is perfectly normal.

That feeling of overwhelm—of chaos—is the single biggest challenge my clients face. You're given a long list of complex tasks (probate, taxes, investments) at a time when you're already emotionally exhausted.

As your Sudden Wealth Guide⁸⁸⁸⁸, I've seen that you don't need another 20-point "to-do list" from the internet. That just adds to the chaos.

You don't need more information; you need a clear plan.

My entire practice is built on a "Stewardship" model to help families move from chaos to quiet confidence. It’s a simple, 3-step process we walk through together.

Step 1: What Do We Do in the "Decision-Free Zone"?

Immediately, we take a strategic pause. Your only job right now is to breathe and give yourself space to process this moment without pressure.

While you do that, our first job together is to get all the pieces on the table.

This isn't homework for you. It's a simple, guided process where we create an inventory. We'll identify all the key documents (the Will, insurance, bank statements) and get a clear picture of the assets.

Most importantly, we'll identify all the key Canadian tax obligations. We’ll look at the final T1 tax return for the estate and plan for the "deemed disposition" tax, which is the bill the Canada Revenue Agency (CRA) requires the estate to pay.

This single step replaces chaos with clarity.

Step 2: How Do We Define Your "Why"?

A financial plan without a purpose is just a collection of products.

Before we ever discuss investments, debt, or budgets, we spend time on the most important question: What is this money for?

Is its purpose to provide security? To fund a philanthropic mission? To ensure your children have an educational head start?

This "Stewardship" conversation is the foundation for everything else. We get clear on your personal values first. This ensures the plan we build is a true reflection of the legacy you received and the life you want to live.

Step 3: How Do We Build Your Stewardship Charter?

Only after we have the "what" (your inventory) and the "why" (your vision) do we build the "how."

This is where I act as your "quarterback." My team and I build your comprehensive Stewardship Charter. This is the blueprint for your financial life.

We coordinate with your lawyer to ensure the probate process in British Columbia is handled correctly. We work with your accountant to make sure the tax strategy is seamless.

We build a thoughtful plan that addresses your debts, optimizes your new assets, and makes full use of your Canadian accounts like the Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP).

This isn't your job to figure out. It's our job to deliver.

Frequently Asked Questions

What is probate, and does it apply in British Columbia?

Probate is the legal process where a court validates a will and confirms the executor's authority to distribute the estate's assets. Yes, it is a required process in British Columbia, and your lawyer will guide you through the specific fees and application procedures.

How long should I wait before making any big financial decisions?

I advise my clients to wait a minimum of six months, and often up to a year. This "decision-free zone" allows time for the initial emotional intensity to subside and provides the space needed to complete the essential administrative and legal work without pressure.

Do I have to pay tax on a house I inherit in Kelowna?

If you inherit the principal residence of the deceased, you will not have to pay capital gains tax if you sell it. However, if you inherit a second property, like a vacation home or rental property, there will likely be capital gains tax payable by the estate based on the increase in its value over the years.

Receiving an inheritance is a profound moment. It is the closing of one chapter and the beginning of another, and it deserves to be handled with intention and wisdom.

The first step is simple. You don't need to make a big decision; you just need to get clear.

I wrote this guide to help you do just that.

Download the 'Sudden Wealth, Clear Plan' Guide

By Rolf Issler, BMgt, CLU

Personal CFO for Founders & Families in Kelowna

ProsperWise Advisors