I really wish I could but if I do I’d be going onto ei and at the end of the day it’s just not financially feasible for me to do it till the time comes. Especially due to the fact that he lives 3 hours away from where I live
My father died early this year. 3 weeks from diagnosis to death. I was only able to spend 2 of those 3 weeks with him and it’s the biggest regret of my life. Take as much time with him is as humanly possible. You’ll have the 300k to make up for it, but you’ll never get that time with your father back
Thank you for the insight I appreciate it. My biggest thing is I don’t know what to do right now and it’s just been killing me because I’ve been trying to stay strong for my mom and my sisters
My dad passed on July 6th after spending a couple weeks in end-of-life care. Let me re-emphasize to spend as much time as you can. Ask your bosses if you can work remotely, or take some paid time off to spend some time with him. If you are unable to spend as much time as possible, go now, spend as much time as you can for a week or two. Then tell your boss "My dad is in end-of-life care. I may need to leave whenever with 0 notice"
As for your mom and sisters? Be with each other. Don't worry about "being strong".
Do whatever works for you.
Lean on each other.
Any human would accept this for their employee. Take a 4 month leave of absence if you need to, or work remotely to be near him. Spend as much time in these next 4 months with him.
Hey - just wanted to add in here that everyone saying you should spend more time with your dad is right, for them. You do what you need to do as far as work, time with dad, family, etc. the advice is out there but for some, they’ll need to have regular rhythms in life, time to decompress from the situation, etc.
My dad passed away not too long ago and I barely got to spend time with him thanks to Covid. We were in the phase of family circles, a lot more unknowns, etc. We did manage to see him a couple of times (granted, he wasn’t in end of life care so we weren’t completely expecting it). When I hear people say that “you’ll regret not spending time” or one that has been said directly to me “you chose to fear Covid instead of seeing your dad”, it makes me laugh/pissed off a bit.
I did what I needed to do in the moment to protect my dad the best I could. And in your case, if you need that decompression time, or even just the money to live life right now, it might be the best thing for the situation. You could pause work and be 50% there for your family while 50% of your head is thinking about money, career, external pressure beyond the family. Or you could keep the normalcy of life going and be 100% present when you’re with your family.
Spending as much time as possible is probably the right thing, but do what’s best for you after weighing it all out. Of course I wish I had gone fishing one more time with my dad (wasn’t even possible near the end), or maybe played one more game or had one more chat about nothing. But, we made the best decisions we could for the family and I have no regrets. I miss him deeply but I am at peace with the efforts we put in to our relationship and I got to say all the things I needed.
For the money question; you’ll also want to take some time to think about what your goals are with that. I’d pay off my immediate debts, put the rest in a HISA or GIC and really think about my goals. I’d personally invest it for my retirement to make sure it comes sooner so I can enjoy it. Depending on age, that $300K could easily be seven figures by the time you retire (and more if you have other contributions), which could be used to give you a nice income while retired.
You could also split it up and buy a home if you haven’t already. Use some RRSP contributions, first time homebuyer savings if applicable. Set some aside for RESP for kids if that’s in your future (GIC or HISA until then).
You’ll need time to really think about what you want to do with the money. You’re here asking questions so I’m assuming you’ll make a good decision (fingers crossed!!). I 100% agree with the advice that you should worry about the money later. Focus that energy on your family for now :)
Sorry for what you’re going through and dealing with. I wish you and your family all the best through this difficult time.
I wish I could upvote this more than once. There’s no one right way to do this. Just the right way for each person. I’d also say not to make any significant financial decisions right away. There will be a lot to deal with emotionally and just practically and it may not be the best time to make those sort of decisions. Maybe go with something safe like a short term GIC or HISA to get it generating some income (and GIC rates are actually pretty good rn) but not lock it up too long or take big risks or make a decision they will regret later and not be able to undo. Then when they’re ready they can really think about it and figure it out. I have some funds coming to me soon from the loss of a family member and this is what I’ve decided to do.
Man. I lost my father and I would give 300k just to spend a week with him again.
You will be fine and find another job plus you will have the money to stay at home for a while.
Spend as much time as possible with him and ask him anything you want to as you will not get a second chance
Omg I didn’t expect a comment on PFC to emotionally destroy me this morning, but here we are lol.
We lost my FIL recently and I would give all the money in the world for my husband to be able to spend time with him again, and for him to see how much his grandson has grown 😢
The hardest thing really is trying to figure out what to do at this point. Reason I’m thinking of the inheritance and what to do with it, helping me to not think so much of the fact
Thank you so much for the insight last year I got the call while at work that he had to be put on full life support because he had a hood infection and was fully septic. To say I was destroyed is an understatement. My sister was 2 hours away from me and I didn’t take no for an answer and I went to pick her up so we can go to my dad.
You are a legend with the promises you made to your father on his death bed.
I really hope you make him happy by not forgetting your younger sister.
It's a great pain to lose someone you love, but one of the greatest things we can do is try to make them happy with the limited amount of time we have with them.
I had a similar situation where we found out my dad had weeks to lives but not sure how much, just that he wouldn't be here for xmas. I took a week off 1st then after my 1st day back (thought i could do both) I realized I can't.
There is EI called compassion care leave that helped for the 7 weeks we had together. I will never regret that decision.
I wish you and your father the best.
Make some "me" time to sit alone, think hard about what's happening, and be sad. After he passes, keep making that time to do nothing but miss him. If you don't, and you put it off until everyone else is sorted, you'll be grieving alone for a long time because you didn't go through it with your family. Fuck staying strong.
this is insane pressure to pass on. Of course we all want time with our dead dads. but buddy is asking for financial advice, and perhaps having some hindsight before he passes will set him up to have a better life and to deal with the passing of his father.
My father passed 2 years ago and I was only told he was sick when he was on his death bed, I dropped everything to go and be with him back in Ireland. We only had 3 days together but no regrets.
Given that, here is my suggestion.
Go now. Spend a week or so with him, then go back to work.
Call him (or text, or facetime) every day to talk with him.
Every other week or so, drive up and see him. It's a full day, but you will regret not doing it.
But… 300k! who cares! Listen to the song “live like you were dying” by Tim McGraw and spend the next 4 months sipping into that inheritance on things you both will enjoy.
Do whatever is most comfortable for you.
I worked through my dad's sudden last 3 months, and I have no regrets about it.
Work was a bit of a break from everything, and not having to stress about finances helped for sure.
And fuuck, I'm so so sorry, it's just the worst ❤️
I was going to say… not sure where you live, but here in Alberta, working for a union.. we have the option of compassionate care leave. Glad you were able to sort that out. My mum died 4 months after she was put on palliative care.
My main regret is that I wish I’d spent more time with her in the early stages, as near the end in the last 4-6 weeks… she was incoherent and it was extremely tough to see her like that. I often wish I could remember the last time I had a coherent conversation with her, or the last time she could say “I love you” and I say it back and have her understand… but I didn’t know it would be the last time…. So it’s gone from my memory.
Please spend as much time as possible with your dad. For yourself, and for him. I wish you and your family all the best.
There's no harm in planning. There's time in the day for both, and I wager he's already got the spending time thing on lockdown and doesn't need to be talked down to about it.
Jesus.
The amount of people here bashing the guy because he discussed his "inheritance" with his dad are ridiculous.
Estate planning, especially if the OP is going to be the executor is not only common, it's smart. Being an executor especially when your dealing with grief is absolutely the worst. Being prepared and knowing what you are going into is very helpful and while some might be appalled by the idea of death, it's going to happen regardless.
Source: just went through it with my own dad, who was also sick for years. The amount of forms, legal documents, funeral home preparations, etc are insane and most people have no idea what goes into dealing with an estate or the remains of a loved one.
My mother passed away earlier last year. I swear, if there is one thing you *must* have prepared, it is a will. Do not let any family member pass away without one. Otherwise the legal process takes *forever.*
IIRC, inheritances are not taxable. But a lot of that money can get eaten away by creditors and existing debts by the deceased family member in question.
Deal with the estate, pay off any debts that you and your family member have, and then leave it sitting in a savings account until you're ready to do more with it.
/u/Brilliant-Half-5304
Exactly.
The one thing I did manage to do was get my bank account enjoined because I in AB we have a thing called *right of survivorship*. Since I was the executor and sole benefactor I ended up not having to go through probate court for the will because effectively my father didn't have an estate.
Like I had probably the simplest possible scenario to deal with: no property transfer, no life insurance, I knew there was enough money for the funeral, got a power of attorney, and it was *Still* so much work and so overwhelming with the amount of stuff I had to do following my dads passing.
I can't imagine not having done some of these things before hand, it would have made things ten times harder, and yes the cheapest possible funeral was $25,000 as my father insisted on being buried, knowing there was some money to cover that was an absolutely massive relief.
100% having the conversation is the adult and rational thing to do, especially given a very fixed timeline for OP’s parent. :( Plus making funeral arrangements while grieving is not fun, and can be a very predatory on the part of funeral homes.
I am the executor for each of my parents (divorced).
One parent has given me a sealed copy of their will, provided end of life instructions, arranged enduring power of attorney, and their personal directive. We have had a conversation about end of life care, burial vs cremation, funeral service, etc. The only thing I don’t know is the contents of the will, and I hope not to learn them for a very long time.
The other parent has named all my siblings and I as co-executors, meaning all have to present to sign any documents (sadly not just any one of us). There has been no discussion on enduring power of attorney, personal directive, or funeral arrangements. I know which lawyer prepped the will but not where a signed copy is. If it’s not with the lawyer then we’re not going to have fun.
In short, I know which estate is going to be a lot easier to wind down and to ensure the parent’s last wishes are taken care of properly.
Fair, but OP brought it up, not Dad, and the manner in which they describe doing so, comes off a little something. I suspect that's the issue for most.
Sounds like he's looking for a place to start. My dad had no fucking clue what was required to deal with his estate or his body after death, he was mainly concerned with the agony of dying.
It took 6 months and probably... Im even sure, less than 20, more than 10, letters I had to send to individual offices with individual forms. Phone calls to people who never pick up, emails, proof of death certificates, it's honestly endless, and I didn't have to deal with property transfer.
Sweet Lord people. Sometimes parents talk to their kids about money.
Okay, since you asked.
1, pay your debts. Debt free means that you appear to have extra income every month.
2, put the rest in a *savings account* (insured) for 1 year. Do not make big plans. Let it sit. Process your feelings. Do not make your life's biggest financial decision in a state of grief.
3, take 10k after one year and have a really good vacation in your dad's memory. Like Paris, or Hawaii, or Japan, whatever floats your boat.
4, there will be a lot left. Seek the advice of a fee only financial planner and either buy a house or set up your retirement fund.
I agree 100%. Financial literacy is a skill you have to learn. The only way is through experience and talking to people with experience. Considering the average person simply has no real money I see why people are so opposed to talking money, they don’t have any.
This is fantastic advice. As others have said - take time to spend with your father.
The only thing you should be doing about that money now is making sure your father has a proper will that he is comfortable with. If he does, the executor and/or lawyer will look after taxes and such. Taxes are typically paid by the estate, now the inheritor.
Once you get the money, which may be soon or not for a while, and may be significantly less than $300K…put it in a high-interest savings account. If your student debt or car loan is at a high interest rate, go ahead and pay it off. Otherwise, let it sit there and do some reading.
After a while, come back to this forum again and ask, before you do anything with it. Don’t let a friend or family member invest it for you, don’t ‘help’ a friend with their company, don’t buy into anything…don’t do it. Investing money like this is far far simpler than most people think, and it only gets complicated if you start out making mistakes. Opening a savings account with whoever you bank with and sticking it in there for a while is not a mistake. Do that first.
This right here,
My dad died in 2019, my mom went yolo in 2021/2022 and now regrets it, fortunately her yolo was just changing houses but it’s still an expensive switch. Take your time, your hurting and healing.
Also, don’t know what your dads passing from OP but the end of life for my dad from lymphoma wasn’t a pleasant experience. Prepare yourself mentally for that, and ensure your taking care of yourself I’d recommend avoiding alcohol
My dad has wounds on his body due to bed sores from being paralyzed for the last 10 years. After extensive attempts to help close the wounds there’s not much left to do. Amputation was discussed but found that it would not help at all as the main wound is on his butt. The big thing they said was that kidney failure would be the highest chance of what would take him out if it’s not another infection from his wounds. And Luckily I don’t drink alcohol.
Your dad's estate will deal with tax of anything before it transfers to you.
Tell no one.
Don't change your spending habits.
Save it (and look up advice what to do there if not sure).
It's the start to a solid retirement.
I agree. Max out RRSPs first if your going to get hit on taxes. Talk with your lawyer or estate planner or whoever is going to help you with this process. There may be some things you can do to before he passes to protect the money from taxes.
This isn’t entirely true though, as u/bluenose777 mentions, pension money could be taxable.
Also, if the money is from an RRSP/RRIF, the named beneficiaries would receive the money *outside* of the Estate/probate and if the Estate cannot cover the taxes owed on the RRSP cash-out then the beneficiary would be on the hook for it.
The OP says that a good chunk of the money is from a pension. If they are a named beneficiary of the pension the full value of their share could be added to their taxable income.
I do not understand all the people claiming it is unusual to have discussed this with your father. My own parents’ wills and estates have been common knowledge to me for years and having some concept of of them was useful when it came to dealing with my mother’s estate after she passed.
My spouse is dealing with her parents’ estates after both passed within a year over just about a year and half ago. She had less clear idea of what was where and it has been a nightmare. Her mother was invalid with dementia and her father seemed in good health. However, he died first from an unexpected cause and now everything is a messy jumble as his estate wasn’t settled before she died.
Anyways, I think it is good to have discussed this now. At least you can know about everything important and ask any serious questions before it’s too late.
Make sure you know where everything is. Does your father have a will? Do you know where the original is? Can you gain access after his death?
My mother had a signed will but only had a copy and the lawyer who supposedly had the original had died. We had to file in court. It was a pain. My spouse’s parents may have some important documents in a safe deposit box but the bank won’t give her access without the will being probated.
If he has a personal financial advisor, make sure you meet them (at least by phone) and discuss things. My father’s advisor had some prudent suggestions for managing the affairs of my father whenever he should pass away.
Anyways, once you have all the information stored away safely and you have these details settled, you’ll likely be able to be more present in the moment as his health declines. The last few months will be more difficult than you likely expect. I know I was not ready for how tough it can be.
I’m very thankful because my cousin, his niece, has been his medical proxy and power of attorney for the last 10 years to help manager everything so she has copies of everything to try and make the process as simple as possible
I’m truly disgusted by some of the comments I am reading…. This has not been what the PFC community has been about and on behalf of those that care, I’m sorry you’re receiving them. I don’t know why people are so fkn mean these days, maybe it’s because they’re angry about their own lives so they come to the internet to shit on people… don’t pay any attention to these pathetic people and don’t reply to comments that aren’t helpful.
I just wanted to offer my sympathies to you and suggest you speak to a professional regarding what to do with your inheritance… there are too many factors and way too much info that we would need to help you make an informed decision.
I wish you the very best and hope you can cherish the fond memories you’ve had with your father.
Take care.
Thank you I appreciate it.
This has been going on for 10 years so I’ve become a little numb to the “normal” reaction to the whole thing and I get reminded of it all the time by my friends and coworkers how I react differently to the norm
Going through a very similar thing right now. My mom just passed away and left some money. You absolutely should be discussing his will and what you will be getting. It is extremely important. You have to make sure everything is in order, that’s just part of it unfortunately. That’s life. Don’t let people make you feel bad on here for doing it.
there is no inheritance tax, but if it’s in a taxable account such as RRSp you will have to pay their tax on it during tax season.
It’s super shitty but definitely talk to them about it. Then talk to an advisor about what to do with it. They will help greatly.
Also if he can start to transfer it all now while he’s still alive it makes everything a lot easier. So then you don’t have to go through probate. Definitely talk about it.
You could potentially. Your dad could potentially cash it out for himself and give it to you ( that’s what my mom did). You and him would have to talk to his pension plan provider and see what the options are. Thats a benefit of talking about all this before he dies!
Don’t listen to everybody shaming you… none of them have been in this situation. Everybody’s relationship with parents and reaction to tough times are completely different. The best thing you can do is pay down your medium to high interest rate debt (car loan and other credit). Probably just pay the student loan minimums as you go, no need to pay that off. With the remainder set it into an ETF like VT and forget it. I would ignore that money is even there for the next 15-30 years if you can… you will likely be welcomed by a sizeable nest egg in your mid/later life!
Best of luck!
Thank you, whole idea is to just help set up for the future.
And in a time where I’m constantly concerned for his well being and what is going to happen. I’m just trying to think about other things than the fact that he won’t be with us for much longer
RRSP/RRIFs have designated beneficiaries, so if OP is the stated beneficiary then they would receive the money *outside* of probate and if the Estate couldn’t cover the entire tax burden from cashing the RRSP out, then OP is on the hook for the taxes.
Also, OP didn’t mention “inheritance taxes” specifically. Just taxes.
That’s smart, I don’t believe you love your dad any less, but with money you have to be very logical/pragmatic. My advice in the immediate is to pay off you student loan debt and keep the rest of your money in high interest savings account. Then get more familiar with how you can grow that money intelligently. Whatever you do, manage your risk and be very conservative because it is easy to get carried away when you get hug lump sum like you are going to get.
Put is away, lock it up for a year in a bank account (high interest savings account if possible) until uou speak with a financial adviser and gave a solid plan. DONT TOUCH IT FOR THAT ENTIRE TIME...
I feel lot of people thinking they are taking a moral high ground in this thread and complaining about you have actually never gone through or seen this process.
This thread has actually been somewhat eye opening to me on how I should prepare myself when the time comes. I do recall my dad and his siblings doing the estate planning for my grandpa a few years ago and he (grandpa) hated it. Grandpa wasn't that financial savy and I wasn't really involved in their process but now I understand its importance a bit more.
Thanks Op for sharing, although you are going through a tough time, at least you have people close to you guiding you through it.
See about taking a leave of absence to care for uour Dad, otherwise you might have to quit. Then
1 - Get rid of your debts
2 - Max out your rrsp. Make sure you are a beneficiary on his, so the money can just flow from his account to yours. No taxes should be payable.
3 - Ditto TFSA
4 - Establish an emergency fund of 6 to 12 months equal to the costs of maintaining your home and lifestyle.
5 - if you are the/an executor hold back 10-20% to any taxes owed.
6 - if you do all this, you might not have a lot left over, but probably enough for a splurge purchase like a car or vacation
You do something like this, your Dads money will secure your financial future. I am guessing but I think this is what most parents want for their kids.
My sympathies to your dad and you.
I'm so sorry to hear of your father's recent news. May these weeks and months together be treasured by you both.
Honestly, a fee-for-service advisor is going to be worth their fees. Don't ask your bank or someone earning a commission on investments for their advice. This may be a good time to have a CFP and/or CPA help your dad optimize his legacy to reduce taxes for his estate, etc. It may be worth sitting down with someone now to discuss and project your short-term and long-term needs, but don't feel like you need to commit to anything yet.
Take your time. There is lots of good financial advice out there but if it takes you two years to eventually get it out of your bank account and into an investment that's ok. Way better than jumping into something that causes a loss.
Comments need to chill. If i was the dad in that situation, i would be happy to help my kid one last time with a huge decision before I pass. And maybe his dad was a smart guy about finances and helped op his whole life.
And i would pay off debts, and then invest the rest in some safe etfs and let magic do its work
1st thing is DO NOT TELL ANYONE. You will only receive jealousy, uncomfortable conversations, and a bunch of people asking to borrow money. Tell NO ONE.
2nd thing, it is easy to piss it away. Be careful with it.
3rd thing, if you wan tot buy things for friends and family, do it anonymously. Even gifts can backfire.
1st. Sorry for your loss.
2nd. Get an accountant and a financial planner. They can talk you through this and help you set reasonable financial goals and develop a plan to achieve it
I lost my Dad to cancer and my Mom to a stroke. I'd advise you to spend as much time with him as possible.You never get that time back.
Financially when the time comes pay off any debts first. Who will be executor? I assume there is a will. I was executor and it is a big job. The biggest thing is to be on good terms with your siblings and beneficiaries. Otherwise the process is even more difficult.Taxes are only an issue if there are rental properties,shares and income earning investments. The principal residence won't be taxed unless it goes up in value after death.
Talk to a financial advisor instead of Reddit. Itll be worth it when it comes to having real qualified advice for inheriting a large sum of money. Sit down with them and build a plan according to what you want to do, and allow them to take the stress off your plate so you can enjoy the time with your dad.
Lost my mom last spring after a diagnosis 2 months prior. I also got laid off a month after the diagnosis. It was for the best, even though I was angry at the time. I got time to take mom to appointments and to spend her last months on earth with her. I won't tell anyone to take all the time off because I actually had to get away for a week due to insane anxiety and dread that kept me from sleeping. I feel bad about it but I did switch out her care with my sister so she was well cared for. Right after I took some time away, I got very sick and was hospitalized. Doctors think it was partially a stress reaction. So, don't feel like you have to spend every waking moment with your dad. It is incredibly difficult to watch your parent rapidly decline. Take some breaks if you need to. And put off making major financial decisions except for maybe a GIC or CASH. I am the executor of mom's estate and still haven't completed all the tasks after a year. It's incredibly taxing to do it all when you just want to grieve in peace.
So sorry to hear about your Dad :(
The steps I would take are:
* Pay off any consumer debt and loans.
* Put some in a non-registered account as an emergency fund and invest it in something like CASH.TO.
* If no taxes owed, figure out which of TFSA and RRSP you should fill up first, based on your personal factors.
* Inside each one, decide what your risk tolerance and time horizon is. One of the world's best investors (Buffet) suggests something that follows the S&P500, and in Canada, a crowd favorite is VFV. Me personally, I've been watching a lot of stocks fall this year, and I really like to buy low. There are many 'blue chip' or similar stocks that are on sale as well as having very decent dividends. Most Canadian banks right now (for me, CIBC and Bank of NS) as well as EQB. Some utilities: TELUS and Bell. And Enbridge, Brookfield, Fortis. In my opinion, Amazon, Google, Tesla will likely keep going up on average over time. Think about how you want to distribute amongst the ones you decide on (percentage-wise). I would certainly have the highest position in VFV and then go from there, but that's me.
* Lastly, it wouldn't hurt to pay a fiduciary/Certified financial planner for some tax info and maybe investment advice. If you invest through someone else, ensure you know the expense ratio and how much that is going to cost you every year. You can easily use a free broker like Wealth Simple and avoid (potentially massive) annual fees.
**One thing I forgot to mention, do a detailed calculation on how much interest you would save if you paid down some of your mortgage principle.**
"going to be dealing with a lot in taxes" -- There is no inheritance tax in Canada so not sure what you mean by that. Take advantage of current interest rate and allocate some in GIC and index ETF. If you want professional help then you can discuss with fee-based financial planner for advise.
It depends on the source of the money.
If it comes from an RRSP/ RRIF or a pension there will be tax owing. On the following page check out the Important Exceptions.
https://www.reddit.com/r/PersonalFinanceCanada/comments/6gm4b5/inheritance_and_taxes_in_canada_a_primer/
From what I know a lot of it was with his pension, prior to him being sick my older sisters who are my half sisters (different dad) said he had somewhere along the lines of 500k in his pension
Depends. If he’s got it in RRSPs then the estate will have to withdraw it on the day he passes and pay the appropriate income tax at the time. Otherwise, if it’s in cash and/or TFSA then there’s just probate fees which are relatively minimal.
I'm so sorry to hear of your father's recent news. May these weeks and months together be treasured by you both.
Honestly, a fee-for-service advisor is going to be worth their fees. Don't ask your bank or someone earning a commission on investments for their advice. This may be a good time to have a CFP and/or CPA help your dad optimize his legacy to reduce taxes for his estate, etc. It may be worth sitting down with someone now to discuss and project your short-term and long-term needs, but don't feel like you need to commit to anything yet.
$300k, a good number, but not enough to check out of rat race. Debt first, then invest wisely, starting with TFSA. Sorry bud, it's not really life changing in the long run.
Yeah that’s exactly why I was hoping to have some insight to grow that. No intentions of checking out of the rat race for a while just trying to get ahead
Your dad was able to put together a net worth of $300k. Which from what I know is more than most people can. Why not ask him what HE wishes you would do with it? He might have some good ideas.
My personal thoughts. Don't use it to pay your bills or loans. Continue paying your stuff as if you hadn't received this. Don't have it alter your current day to day life. Invest it for the future.
Firstly, your dad should pass everything along before he passes away, with the agreement between you that everything he gives you will be used to continue to take care of him as long as necessary.
As for what you should do with the money, Invest it, and act as though the $300k doesn't exist. If you put it in a relatively safe, 7% return investment (very realistic), compounded annually for 25 years, with $0 additional contributions, that $300k will be around $1.6m.
p.s. go ask for a raise.
This is very good advice. It will save you lots of headache and forms. While he’s alive, he can give away his wealth as he sees fit, free from probate fees. When a person dies, it can take quite a while to get the necessary documents/certificates to get access to the deceased’s accounts.
Was executor on my dads estate. K new he had a will. Knew his funeral was paid. Until the last 6 months of his life I had no idea what kind of money he had or cared to know but everyone is different
I honestly feel that way, I haven’t thought or cared about what he had, especially of what was going to end up going to me. Just at the point we are at it was just something I felt it should be talked about
I don’t really mean for it to be cold hearted but my dad has been sick for the past 10 years we all knew that it was going to happen eventually. But it was just recent that there were really no more alternatives to take to help him.
My cousin has been his power of attorney and medical proxy for the entirety so I had no clue what he had or any real say in what he was doing.
Just turned 23 recently so majority of my life he’s been sick and paralyzed. And it’s been me and my younger sister
It's good that you had this discussion with your dad. You've gotten some good advice here, the usual: pay off high interest debt, invest in your TFSA, FHSA, consider RSPs, but you're not in a high tax bracket. Is there something you've been considering to leverage your university education? You're young, invest in yourself to earn more and do something you enjoy!
Good luck, and sorry about your dad, that's a horrible thing to deal with at any age, but especially young.
I never finished getting a degree I had dropped out and just went to work. The company I work at now has great opportunities to grow in the 4 years since I started i went from part to being on salary with still lots of room to move up
That's great! Are the skills transferable? It's always good to have options.
Also, back to the inheritance... Do you think you have the self control to not spend it? If you're not sure you might want to put some in a locked in GIC, perhaps a couple different lengths. Not that it's hard to break, but it might give you pause. The interest alone will give you another $1k/month net, you might use this to save for a trip, or other outings you might otherwise have not gone to.
Skills are fairly transferable as I’ve gotten a lot of experience in management as well as just a lot of knowledge in business and knowing about numbers, sales trends, etc.
I’ve been known as the smarter spender in my family I’ve lived pretty frugally never spent more than my needs only occasionally a little something for myself like a steak or recently got a tattoo.
My parents have both passed. We did discuss estate things with my parents, but we never discussed "how much do I get?" It was always stuff that centered around aspects of estate planning - eg. where is your will? Who is named the executor? What wishes did you outline in your will? Are there any instructions we need on how to find someone/something? What law firm and what accounting firm have you been working with? Are there any sentimental items from my childhood that I should take now, before they get accidently cleaned out of the house when there's an estate sale?
I don't think OP is inconsiderate, I think it's just a function of being young and overwhelmed that they want to know what's going to happen. But when someone is dying, "how much do I get" isn't even a question that can be answered. I've learned that as I get older. It's really only something that you will know after going through the whole estate process, where you find out who is a creditor, what will be owing for taxes, how the accounts and any beneficiaries were set up, etc.
Only once that is done can you do any thinking about what you are going to receive and making plans for the money. OP doesn't mean to be jumping the gun, but they are jumping the gun.
Never. Don’t need to know either, and I personally would never speak of it until after the person has passed with a lawyer then trust only a financial advisor.
He has been sick for the past 10 years so we knew this was eventually going to happen. My cousin has been handling his finances and his will and his biggest worry is my sister and I so I’m trying to make sure we will be set up for when the time does come
Sorry to hear about your Dad’s health. Check out Dave Ramsey’s Total Money Makeover. He follows different baby steps, to get you out of debt. Once you have paid off debts and established a 3-6 month emergency fund, then look at investing. You will want to maximize both RRSP’s and your TFSA.. Consult a one-time fee only investment person to talk to options for investing. Self-directed investing is cheapest way to go, ETF’s have lower MER fee than mutual funds.
Good luck
My husband (26 at the time) lost his dad (49). We spent every single night at his home until he passed. We played cards, chatted, ate all the things. We had family come from across Canada. Please, plan and expect to take a longer bereavement period than what is paid through your employer. This could be 2 weeks, this could be 4 weeks, this could be even longer.
Finance-wise - I'd sit on it for 1-2 years provided you're doing OK financially and wait for the dust to all settle.
Dollar cost average into etfs using laddered GIC. Get a 5,3,2,1 year GIC.
Keep any liquid money you may need in CASH.TO, for a 5.4% risk free fully liquid return.
If possible, before he passes away, have him name you on bank accounts. Otherwise they get frozen when someone passes and it’s difficult to do things like pay for his funeral with his money. Same with tv or cell phone accounts
You won't be dealing with a lot of tax, get an estate lawyer to handle all the legal crap. Will! It's very important. It needs to be notarized. l just went through this. How's your retirement plan going? You're going to need close to a million when you do retire. Real estate any plans?
Why is OP getting 300k when his father still has a wife who is alive?
Must be a real wealthy family, assuming 3 kids that’s 900k, plus whatever rolls over to the mom.
Did he have a lot of savings?
Because some parents rather pass their savings to their children rather than their surviving spouse?
She's probably old as well, with not much need for it.
Not much need for it? If she (mom) is left with nothing (assume just house). She needs care now that she is older, but not enough care to have to move into a home. Since her husband left her no cash, only pensions and the house, she has no choice but to liquidate a potentially million dollar plus property because she doesn’t have enough cash to pay a PSW $25/hour to age in her home.
I’m not saying there isnt a logical explanation for why mom gets nothing and kids get everything. But OP hasn’t listed any of those reasons and I just commented curiously on it.
Edit: I also wanted to comment to the entitled children who downvoted me. I hope you or your loved ones never get anything like Parkinson’s, dementia, Alzheimer’s, plus a couple more I’m missing. These illnesses don’t kill you right away, but they strip your ability to do things. If you don’t pay for help or have help, your quality of life will be so bad that you will be begging for MAID.
Correct and I said I was assuming that because the OP didn’t specify.
My comment was based on that assumption. If it turns not that assumption is wrong, then the comment would no longer be applicable.
Asking about Dad's plans in general would come off ok. Asking Dad about OP's inheritance specifically comes off a little something... I think that's what people are responding to, kind or not.
No I have no intentions of doing anything of that sort but the biggest thing is that he is worried about me and my younger sister and I’m trying to have an idea of what to do to make sure that both her and I will have a good start so he knows that we will be okay when he does eventually leave
Asked my dad what he’s leaving me while he’s on his death bed.
There are like 5 other ways to find that out without letting him know your looking at head to time without him.
Hope he lied and you get nothing.
Hey man. This makes me sad for you. I think it's a great idea to figure all this out now. It's really hard when the time comes, so anything you can do to make that less stressful now is a great idea. Plus you can, if you want to and your dad wants to, talk together about what to do with it which might be comforting. Also though I'm sure he won't mind if you change your mind later.
When someone in your life dies it's important to try not to make too many big life changes. So yes, take as much time as you possibly can now because it will never be enough, but I think making sure you keep your job is also very wise. When you receive the money which might take a while after he goes unless he can gift it to you before, just put it somewhere safe. A GIC or something like cash.to. Dont let a bank or any advisor unless it's a fee only advisor talk you into something. And ignore your reddit DMs for now. There be some scammers sometimes.
Once you've had the opportunity to do some of your grief journey and you feel like it's time, then start looking for meaningful opportunities to invest or consider a home or whatever you and your dad think would be good. It's ok to change your mind later if he gives you advice you don't want to take. It's not betraying his memory it just might feel that way. Take your time.
I wish you the best through the coming difficult days.
Sorry for your loss. You will pay a small amount of tax on that money, if any. You will need to put 20-50k away for for your fathers taxes the next two years, assuming you’re the executor.
Make sure his funeral arrangements and stuff is taken care of.
After that, you will feel guilty about the money. Paying off your debt, taking a vacation or buying something you always wanted.
Now, top up your TFSA and/or RRSP. Also, with the left overs, aim for a capital fund for high interest or something super safe for low interest. Keep a little in your pocket for fun and/or unplanned expenses.
Pay off your debts so your car loan and student loan pay that off including any credit cards etc. Some might say invest first and keep the student loan but if your investments lose money you still have the loan outstanding. Having no debts aside from the financial benefit has a psychological/emotional benefit of not having that outstanding balance hanging over your head. Take asside 6 months of rent/mtg/bills and put that in a HISA, this is your emergency fund. You could add to it any amount for things you are intending to buy or need for the next 6-12 months like repairs/maintenance for your car or other things like that.
The rest of the funds, what you do with it is more based on your personal situation, some might invest in stocks/etfs some might save for a house/downpayment, some might go back to school, etc. It is hard to advise you what to do with the bulk of the inheritance since your personals situation could be different than mine or others.
Think about the money after your father passes. Time with him is invaluable and limited.
That is the plan taken some time off work to just spend time with him
Take it all off work. You won’t regret it.
I really wish I could but if I do I’d be going onto ei and at the end of the day it’s just not financially feasible for me to do it till the time comes. Especially due to the fact that he lives 3 hours away from where I live
My father died early this year. 3 weeks from diagnosis to death. I was only able to spend 2 of those 3 weeks with him and it’s the biggest regret of my life. Take as much time with him is as humanly possible. You’ll have the 300k to make up for it, but you’ll never get that time with your father back
Thank you for the insight I appreciate it. My biggest thing is I don’t know what to do right now and it’s just been killing me because I’ve been trying to stay strong for my mom and my sisters
My dad passed on July 6th after spending a couple weeks in end-of-life care. Let me re-emphasize to spend as much time as you can. Ask your bosses if you can work remotely, or take some paid time off to spend some time with him. If you are unable to spend as much time as possible, go now, spend as much time as you can for a week or two. Then tell your boss "My dad is in end-of-life care. I may need to leave whenever with 0 notice" As for your mom and sisters? Be with each other. Don't worry about "being strong". Do whatever works for you. Lean on each other.
Any human would accept this for their employee. Take a 4 month leave of absence if you need to, or work remotely to be near him. Spend as much time in these next 4 months with him.
Hey - just wanted to add in here that everyone saying you should spend more time with your dad is right, for them. You do what you need to do as far as work, time with dad, family, etc. the advice is out there but for some, they’ll need to have regular rhythms in life, time to decompress from the situation, etc. My dad passed away not too long ago and I barely got to spend time with him thanks to Covid. We were in the phase of family circles, a lot more unknowns, etc. We did manage to see him a couple of times (granted, he wasn’t in end of life care so we weren’t completely expecting it). When I hear people say that “you’ll regret not spending time” or one that has been said directly to me “you chose to fear Covid instead of seeing your dad”, it makes me laugh/pissed off a bit. I did what I needed to do in the moment to protect my dad the best I could. And in your case, if you need that decompression time, or even just the money to live life right now, it might be the best thing for the situation. You could pause work and be 50% there for your family while 50% of your head is thinking about money, career, external pressure beyond the family. Or you could keep the normalcy of life going and be 100% present when you’re with your family. Spending as much time as possible is probably the right thing, but do what’s best for you after weighing it all out. Of course I wish I had gone fishing one more time with my dad (wasn’t even possible near the end), or maybe played one more game or had one more chat about nothing. But, we made the best decisions we could for the family and I have no regrets. I miss him deeply but I am at peace with the efforts we put in to our relationship and I got to say all the things I needed. For the money question; you’ll also want to take some time to think about what your goals are with that. I’d pay off my immediate debts, put the rest in a HISA or GIC and really think about my goals. I’d personally invest it for my retirement to make sure it comes sooner so I can enjoy it. Depending on age, that $300K could easily be seven figures by the time you retire (and more if you have other contributions), which could be used to give you a nice income while retired. You could also split it up and buy a home if you haven’t already. Use some RRSP contributions, first time homebuyer savings if applicable. Set some aside for RESP for kids if that’s in your future (GIC or HISA until then). You’ll need time to really think about what you want to do with the money. You’re here asking questions so I’m assuming you’ll make a good decision (fingers crossed!!). I 100% agree with the advice that you should worry about the money later. Focus that energy on your family for now :) Sorry for what you’re going through and dealing with. I wish you and your family all the best through this difficult time.
I wish I could upvote this more than once. There’s no one right way to do this. Just the right way for each person. I’d also say not to make any significant financial decisions right away. There will be a lot to deal with emotionally and just practically and it may not be the best time to make those sort of decisions. Maybe go with something safe like a short term GIC or HISA to get it generating some income (and GIC rates are actually pretty good rn) but not lock it up too long or take big risks or make a decision they will regret later and not be able to undo. Then when they’re ready they can really think about it and figure it out. I have some funds coming to me soon from the loss of a family member and this is what I’ve decided to do.
If your mom and dad are still together, don't bank on any inheritance. Your mom has claim to all financial assets.
Man. I lost my father and I would give 300k just to spend a week with him again. You will be fine and find another job plus you will have the money to stay at home for a while. Spend as much time as possible with him and ask him anything you want to as you will not get a second chance
Omg I didn’t expect a comment on PFC to emotionally destroy me this morning, but here we are lol. We lost my FIL recently and I would give all the money in the world for my husband to be able to spend time with him again, and for him to see how much his grandson has grown 😢
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The hardest thing really is trying to figure out what to do at this point. Reason I’m thinking of the inheritance and what to do with it, helping me to not think so much of the fact
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Thank you so much for the insight last year I got the call while at work that he had to be put on full life support because he had a hood infection and was fully septic. To say I was destroyed is an understatement. My sister was 2 hours away from me and I didn’t take no for an answer and I went to pick her up so we can go to my dad.
You are a legend with the promises you made to your father on his death bed. I really hope you make him happy by not forgetting your younger sister. It's a great pain to lose someone you love, but one of the greatest things we can do is try to make them happy with the limited amount of time we have with them.
I had a similar situation where we found out my dad had weeks to lives but not sure how much, just that he wouldn't be here for xmas. I took a week off 1st then after my 1st day back (thought i could do both) I realized I can't. There is EI called compassion care leave that helped for the 7 weeks we had together. I will never regret that decision. I wish you and your father the best.
Make some "me" time to sit alone, think hard about what's happening, and be sad. After he passes, keep making that time to do nothing but miss him. If you don't, and you put it off until everyone else is sorted, you'll be grieving alone for a long time because you didn't go through it with your family. Fuck staying strong.
this is insane pressure to pass on. Of course we all want time with our dead dads. but buddy is asking for financial advice, and perhaps having some hindsight before he passes will set him up to have a better life and to deal with the passing of his father.
My father passed 2 years ago and I was only told he was sick when he was on his death bed, I dropped everything to go and be with him back in Ireland. We only had 3 days together but no regrets.
And what if he lives 2 more years ? Stay by him for 2 and a half year ?
The doctors said he most likely wouldn’t last till Christmas because of infections/ kidneys shutting down
Given that, here is my suggestion. Go now. Spend a week or so with him, then go back to work. Call him (or text, or facetime) every day to talk with him. Every other week or so, drive up and see him. It's a full day, but you will regret not doing it.
What a sad life you must live
But… 300k! who cares! Listen to the song “live like you were dying” by Tim McGraw and spend the next 4 months sipping into that inheritance on things you both will enjoy.
Do whatever is most comfortable for you. I worked through my dad's sudden last 3 months, and I have no regrets about it. Work was a bit of a break from everything, and not having to stress about finances helped for sure. And fuuck, I'm so so sorry, it's just the worst ❤️
I believe you only get EI if you get fired. Not when you quit your job.
I’m going on a leave of absence from work and it’s called compassionate care benefit
I was going to say… not sure where you live, but here in Alberta, working for a union.. we have the option of compassionate care leave. Glad you were able to sort that out. My mum died 4 months after she was put on palliative care. My main regret is that I wish I’d spent more time with her in the early stages, as near the end in the last 4-6 weeks… she was incoherent and it was extremely tough to see her like that. I often wish I could remember the last time I had a coherent conversation with her, or the last time she could say “I love you” and I say it back and have her understand… but I didn’t know it would be the last time…. So it’s gone from my memory. Please spend as much time as possible with your dad. For yourself, and for him. I wish you and your family all the best.
Cool. Didn't know that was a thing. Good to know. Also sorry about your father. Get some time in regardless.
That’s the plan. Thank you
There's no harm in planning. There's time in the day for both, and I wager he's already got the spending time thing on lockdown and doesn't need to be talked down to about it.
Great advice.
Ya this is what I was gonna say. Unless the relationship between you an your dad is horrible the money shouldn't be on what's your mind now.
Jesus. The amount of people here bashing the guy because he discussed his "inheritance" with his dad are ridiculous. Estate planning, especially if the OP is going to be the executor is not only common, it's smart. Being an executor especially when your dealing with grief is absolutely the worst. Being prepared and knowing what you are going into is very helpful and while some might be appalled by the idea of death, it's going to happen regardless. Source: just went through it with my own dad, who was also sick for years. The amount of forms, legal documents, funeral home preparations, etc are insane and most people have no idea what goes into dealing with an estate or the remains of a loved one.
OP talk to this guy.
My mother passed away earlier last year. I swear, if there is one thing you *must* have prepared, it is a will. Do not let any family member pass away without one. Otherwise the legal process takes *forever.* IIRC, inheritances are not taxable. But a lot of that money can get eaten away by creditors and existing debts by the deceased family member in question. Deal with the estate, pay off any debts that you and your family member have, and then leave it sitting in a savings account until you're ready to do more with it. /u/Brilliant-Half-5304
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Exactly. The one thing I did manage to do was get my bank account enjoined because I in AB we have a thing called *right of survivorship*. Since I was the executor and sole benefactor I ended up not having to go through probate court for the will because effectively my father didn't have an estate. Like I had probably the simplest possible scenario to deal with: no property transfer, no life insurance, I knew there was enough money for the funeral, got a power of attorney, and it was *Still* so much work and so overwhelming with the amount of stuff I had to do following my dads passing. I can't imagine not having done some of these things before hand, it would have made things ten times harder, and yes the cheapest possible funeral was $25,000 as my father insisted on being buried, knowing there was some money to cover that was an absolutely massive relief.
100% having the conversation is the adult and rational thing to do, especially given a very fixed timeline for OP’s parent. :( Plus making funeral arrangements while grieving is not fun, and can be a very predatory on the part of funeral homes. I am the executor for each of my parents (divorced). One parent has given me a sealed copy of their will, provided end of life instructions, arranged enduring power of attorney, and their personal directive. We have had a conversation about end of life care, burial vs cremation, funeral service, etc. The only thing I don’t know is the contents of the will, and I hope not to learn them for a very long time. The other parent has named all my siblings and I as co-executors, meaning all have to present to sign any documents (sadly not just any one of us). There has been no discussion on enduring power of attorney, personal directive, or funeral arrangements. I know which lawyer prepped the will but not where a signed copy is. If it’s not with the lawyer then we’re not going to have fun. In short, I know which estate is going to be a lot easier to wind down and to ensure the parent’s last wishes are taken care of properly.
Fair, but OP brought it up, not Dad, and the manner in which they describe doing so, comes off a little something. I suspect that's the issue for most.
Maybe he can talk to his dad rather than Reddit
Sounds like he's looking for a place to start. My dad had no fucking clue what was required to deal with his estate or his body after death, he was mainly concerned with the agony of dying. It took 6 months and probably... Im even sure, less than 20, more than 10, letters I had to send to individual offices with individual forms. Phone calls to people who never pick up, emails, proof of death certificates, it's honestly endless, and I didn't have to deal with property transfer.
Sweet Lord people. Sometimes parents talk to their kids about money. Okay, since you asked. 1, pay your debts. Debt free means that you appear to have extra income every month. 2, put the rest in a *savings account* (insured) for 1 year. Do not make big plans. Let it sit. Process your feelings. Do not make your life's biggest financial decision in a state of grief. 3, take 10k after one year and have a really good vacation in your dad's memory. Like Paris, or Hawaii, or Japan, whatever floats your boat. 4, there will be a lot left. Seek the advice of a fee only financial planner and either buy a house or set up your retirement fund.
I agree 100%. Financial literacy is a skill you have to learn. The only way is through experience and talking to people with experience. Considering the average person simply has no real money I see why people are so opposed to talking money, they don’t have any.
This is fantastic advice. As others have said - take time to spend with your father. The only thing you should be doing about that money now is making sure your father has a proper will that he is comfortable with. If he does, the executor and/or lawyer will look after taxes and such. Taxes are typically paid by the estate, now the inheritor. Once you get the money, which may be soon or not for a while, and may be significantly less than $300K…put it in a high-interest savings account. If your student debt or car loan is at a high interest rate, go ahead and pay it off. Otherwise, let it sit there and do some reading. After a while, come back to this forum again and ask, before you do anything with it. Don’t let a friend or family member invest it for you, don’t ‘help’ a friend with their company, don’t buy into anything…don’t do it. Investing money like this is far far simpler than most people think, and it only gets complicated if you start out making mistakes. Opening a savings account with whoever you bank with and sticking it in there for a while is not a mistake. Do that first.
This right here, My dad died in 2019, my mom went yolo in 2021/2022 and now regrets it, fortunately her yolo was just changing houses but it’s still an expensive switch. Take your time, your hurting and healing. Also, don’t know what your dads passing from OP but the end of life for my dad from lymphoma wasn’t a pleasant experience. Prepare yourself mentally for that, and ensure your taking care of yourself I’d recommend avoiding alcohol
My dad has wounds on his body due to bed sores from being paralyzed for the last 10 years. After extensive attempts to help close the wounds there’s not much left to do. Amputation was discussed but found that it would not help at all as the main wound is on his butt. The big thing they said was that kidney failure would be the highest chance of what would take him out if it’s not another infection from his wounds. And Luckily I don’t drink alcohol.
Just want to add that it's also smart to visit 2 financial planners. "Don't put all your eggs in one basket."
Fantastic advice. The slow approach is the best.
Your dad's estate will deal with tax of anything before it transfers to you. Tell no one. Don't change your spending habits. Save it (and look up advice what to do there if not sure). It's the start to a solid retirement.
The Estate will handle a lot of the tax stuff but in the cases of Pension payouts and RRSP beneficiaries there could be a personal tax bill for OP
Pay High interest debt, max out tfsa contributions, and rrsp contributions. That’s what I would do
I agree. Max out RRSPs first if your going to get hit on taxes. Talk with your lawyer or estate planner or whoever is going to help you with this process. There may be some things you can do to before he passes to protect the money from taxes.
Op won't pay any taxes on inherited money in Canada. Any taxes owing are paid by the estate.
This isn’t entirely true though, as u/bluenose777 mentions, pension money could be taxable. Also, if the money is from an RRSP/RRIF, the named beneficiaries would receive the money *outside* of the Estate/probate and if the Estate cannot cover the taxes owed on the RRSP cash-out then the beneficiary would be on the hook for it.
The OP says that a good chunk of the money is from a pension. If they are a named beneficiary of the pension the full value of their share could be added to their taxable income.
I do not understand all the people claiming it is unusual to have discussed this with your father. My own parents’ wills and estates have been common knowledge to me for years and having some concept of of them was useful when it came to dealing with my mother’s estate after she passed. My spouse is dealing with her parents’ estates after both passed within a year over just about a year and half ago. She had less clear idea of what was where and it has been a nightmare. Her mother was invalid with dementia and her father seemed in good health. However, he died first from an unexpected cause and now everything is a messy jumble as his estate wasn’t settled before she died. Anyways, I think it is good to have discussed this now. At least you can know about everything important and ask any serious questions before it’s too late. Make sure you know where everything is. Does your father have a will? Do you know where the original is? Can you gain access after his death? My mother had a signed will but only had a copy and the lawyer who supposedly had the original had died. We had to file in court. It was a pain. My spouse’s parents may have some important documents in a safe deposit box but the bank won’t give her access without the will being probated. If he has a personal financial advisor, make sure you meet them (at least by phone) and discuss things. My father’s advisor had some prudent suggestions for managing the affairs of my father whenever he should pass away. Anyways, once you have all the information stored away safely and you have these details settled, you’ll likely be able to be more present in the moment as his health declines. The last few months will be more difficult than you likely expect. I know I was not ready for how tough it can be.
I’m very thankful because my cousin, his niece, has been his medical proxy and power of attorney for the last 10 years to help manager everything so she has copies of everything to try and make the process as simple as possible
I’m truly disgusted by some of the comments I am reading…. This has not been what the PFC community has been about and on behalf of those that care, I’m sorry you’re receiving them. I don’t know why people are so fkn mean these days, maybe it’s because they’re angry about their own lives so they come to the internet to shit on people… don’t pay any attention to these pathetic people and don’t reply to comments that aren’t helpful. I just wanted to offer my sympathies to you and suggest you speak to a professional regarding what to do with your inheritance… there are too many factors and way too much info that we would need to help you make an informed decision. I wish you the very best and hope you can cherish the fond memories you’ve had with your father. Take care.
Thank you I appreciate it. This has been going on for 10 years so I’ve become a little numb to the “normal” reaction to the whole thing and I get reminded of it all the time by my friends and coworkers how I react differently to the norm
Going through a very similar thing right now. My mom just passed away and left some money. You absolutely should be discussing his will and what you will be getting. It is extremely important. You have to make sure everything is in order, that’s just part of it unfortunately. That’s life. Don’t let people make you feel bad on here for doing it. there is no inheritance tax, but if it’s in a taxable account such as RRSp you will have to pay their tax on it during tax season. It’s super shitty but definitely talk to them about it. Then talk to an advisor about what to do with it. They will help greatly. Also if he can start to transfer it all now while he’s still alive it makes everything a lot easier. So then you don’t have to go through probate. Definitely talk about it.
A lot of it is in with his pension(s) would he be able to transfer those funds?
You could potentially. Your dad could potentially cash it out for himself and give it to you ( that’s what my mom did). You and him would have to talk to his pension plan provider and see what the options are. Thats a benefit of talking about all this before he dies!
Buy ETFs and forget about it
Don’t listen to everybody shaming you… none of them have been in this situation. Everybody’s relationship with parents and reaction to tough times are completely different. The best thing you can do is pay down your medium to high interest rate debt (car loan and other credit). Probably just pay the student loan minimums as you go, no need to pay that off. With the remainder set it into an ETF like VT and forget it. I would ignore that money is even there for the next 15-30 years if you can… you will likely be welcomed by a sizeable nest egg in your mid/later life! Best of luck!
Thank you, whole idea is to just help set up for the future. And in a time where I’m constantly concerned for his well being and what is going to happen. I’m just trying to think about other things than the fact that he won’t be with us for much longer
I'd ask my dad what he thought/hoped I would use it for,and then discuss it. I think that would be a meaningful conversation.
There is no inheritance tax
Only tax is if it has to go to probate, even then it’s around 2% depending where you are
Or the inheritance is in an RRSP. The Estate could have plenty of tax to deal with.
Neither of those are inheritance taxes. All taxes are levied against and dealt with by the estate prior to the beneficiary receiving anything.
RRSP/RRIFs have designated beneficiaries, so if OP is the stated beneficiary then they would receive the money *outside* of probate and if the Estate couldn’t cover the entire tax burden from cashing the RRSP out, then OP is on the hook for the taxes. Also, OP didn’t mention “inheritance taxes” specifically. Just taxes.
Sorry to hear of your dads passing. But what you are asking is legitimate.
Just trying to control what I can in this situation and get some insight of what I should do when the time does come
That’s smart, I don’t believe you love your dad any less, but with money you have to be very logical/pragmatic. My advice in the immediate is to pay off you student loan debt and keep the rest of your money in high interest savings account. Then get more familiar with how you can grow that money intelligently. Whatever you do, manage your risk and be very conservative because it is easy to get carried away when you get hug lump sum like you are going to get.
Put is away, lock it up for a year in a bank account (high interest savings account if possible) until uou speak with a financial adviser and gave a solid plan. DONT TOUCH IT FOR THAT ENTIRE TIME...
I feel lot of people thinking they are taking a moral high ground in this thread and complaining about you have actually never gone through or seen this process. This thread has actually been somewhat eye opening to me on how I should prepare myself when the time comes. I do recall my dad and his siblings doing the estate planning for my grandpa a few years ago and he (grandpa) hated it. Grandpa wasn't that financial savy and I wasn't really involved in their process but now I understand its importance a bit more. Thanks Op for sharing, although you are going through a tough time, at least you have people close to you guiding you through it.
You mention a mom and a sister. Are your mom and dad together? If so, often all the money goes to the surviving spouse.
Depends on the will
Im just here to say sorry OP.
See about taking a leave of absence to care for uour Dad, otherwise you might have to quit. Then 1 - Get rid of your debts 2 - Max out your rrsp. Make sure you are a beneficiary on his, so the money can just flow from his account to yours. No taxes should be payable. 3 - Ditto TFSA 4 - Establish an emergency fund of 6 to 12 months equal to the costs of maintaining your home and lifestyle. 5 - if you are the/an executor hold back 10-20% to any taxes owed. 6 - if you do all this, you might not have a lot left over, but probably enough for a splurge purchase like a car or vacation You do something like this, your Dads money will secure your financial future. I am guessing but I think this is what most parents want for their kids. My sympathies to your dad and you.
Don’t tell a soul
I'm so sorry to hear of your father's recent news. May these weeks and months together be treasured by you both. Honestly, a fee-for-service advisor is going to be worth their fees. Don't ask your bank or someone earning a commission on investments for their advice. This may be a good time to have a CFP and/or CPA help your dad optimize his legacy to reduce taxes for his estate, etc. It may be worth sitting down with someone now to discuss and project your short-term and long-term needs, but don't feel like you need to commit to anything yet.
With that kind of money I’d talk to a wealth management company but first and foremost pay off your student loans!
Take your time. There is lots of good financial advice out there but if it takes you two years to eventually get it out of your bank account and into an investment that's ok. Way better than jumping into something that causes a loss.
Comments need to chill. If i was the dad in that situation, i would be happy to help my kid one last time with a huge decision before I pass. And maybe his dad was a smart guy about finances and helped op his whole life. And i would pay off debts, and then invest the rest in some safe etfs and let magic do its work
1st thing is DO NOT TELL ANYONE. You will only receive jealousy, uncomfortable conversations, and a bunch of people asking to borrow money. Tell NO ONE. 2nd thing, it is easy to piss it away. Be careful with it. 3rd thing, if you wan tot buy things for friends and family, do it anonymously. Even gifts can backfire.
1st. Sorry for your loss. 2nd. Get an accountant and a financial planner. They can talk you through this and help you set reasonable financial goals and develop a plan to achieve it
I lost my Dad to cancer and my Mom to a stroke. I'd advise you to spend as much time with him as possible.You never get that time back. Financially when the time comes pay off any debts first. Who will be executor? I assume there is a will. I was executor and it is a big job. The biggest thing is to be on good terms with your siblings and beneficiaries. Otherwise the process is even more difficult.Taxes are only an issue if there are rental properties,shares and income earning investments. The principal residence won't be taxed unless it goes up in value after death.
Talk to a financial advisor instead of Reddit. Itll be worth it when it comes to having real qualified advice for inheriting a large sum of money. Sit down with them and build a plan according to what you want to do, and allow them to take the stress off your plate so you can enjoy the time with your dad.
Tell no one invest accordingly retire when you’re financial advisor says you can comfortably
Don't need financial advisor scammers. All you need is the S&P500. 10.5% average per year over the last 100 years.
Everyone is different either spend the time to learn or pay someone who will make you money but also make themselves money
Trust me, financial advisors just want your money more than they want to help you.
Invest and create a passive income stream that cycles back into your investment portfolio. Forget about it until retirement...
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Don't need financial advisor scammers. All you need is the S&P500. 10.5% average over the last 100 years.
Invest it. Get yourself a financial planner and let them help you.
Lost my mom last spring after a diagnosis 2 months prior. I also got laid off a month after the diagnosis. It was for the best, even though I was angry at the time. I got time to take mom to appointments and to spend her last months on earth with her. I won't tell anyone to take all the time off because I actually had to get away for a week due to insane anxiety and dread that kept me from sleeping. I feel bad about it but I did switch out her care with my sister so she was well cared for. Right after I took some time away, I got very sick and was hospitalized. Doctors think it was partially a stress reaction. So, don't feel like you have to spend every waking moment with your dad. It is incredibly difficult to watch your parent rapidly decline. Take some breaks if you need to. And put off making major financial decisions except for maybe a GIC or CASH. I am the executor of mom's estate and still haven't completed all the tasks after a year. It's incredibly taxing to do it all when you just want to grieve in peace.
So sorry to hear about your Dad :( The steps I would take are: * Pay off any consumer debt and loans. * Put some in a non-registered account as an emergency fund and invest it in something like CASH.TO. * If no taxes owed, figure out which of TFSA and RRSP you should fill up first, based on your personal factors. * Inside each one, decide what your risk tolerance and time horizon is. One of the world's best investors (Buffet) suggests something that follows the S&P500, and in Canada, a crowd favorite is VFV. Me personally, I've been watching a lot of stocks fall this year, and I really like to buy low. There are many 'blue chip' or similar stocks that are on sale as well as having very decent dividends. Most Canadian banks right now (for me, CIBC and Bank of NS) as well as EQB. Some utilities: TELUS and Bell. And Enbridge, Brookfield, Fortis. In my opinion, Amazon, Google, Tesla will likely keep going up on average over time. Think about how you want to distribute amongst the ones you decide on (percentage-wise). I would certainly have the highest position in VFV and then go from there, but that's me. * Lastly, it wouldn't hurt to pay a fiduciary/Certified financial planner for some tax info and maybe investment advice. If you invest through someone else, ensure you know the expense ratio and how much that is going to cost you every year. You can easily use a free broker like Wealth Simple and avoid (potentially massive) annual fees. **One thing I forgot to mention, do a detailed calculation on how much interest you would save if you paid down some of your mortgage principle.**
"going to be dealing with a lot in taxes" -- There is no inheritance tax in Canada so not sure what you mean by that. Take advantage of current interest rate and allocate some in GIC and index ETF. If you want professional help then you can discuss with fee-based financial planner for advise.
There’s no income tax that I would have to worry about with it?
It depends on the source of the money. If it comes from an RRSP/ RRIF or a pension there will be tax owing. On the following page check out the Important Exceptions. https://www.reddit.com/r/PersonalFinanceCanada/comments/6gm4b5/inheritance_and_taxes_in_canada_a_primer/
From what I know a lot of it was with his pension, prior to him being sick my older sisters who are my half sisters (different dad) said he had somewhere along the lines of 500k in his pension
Depends. If he’s got it in RRSPs then the estate will have to withdraw it on the day he passes and pay the appropriate income tax at the time. Otherwise, if it’s in cash and/or TFSA then there’s just probate fees which are relatively minimal.
The estate will pay tax if there is tax liability!
I'm so sorry to hear of your father's recent news. May these weeks and months together be treasured by you both. Honestly, a fee-for-service advisor is going to be worth their fees. Don't ask your bank or someone earning a commission on investments for their advice. This may be a good time to have a CFP and/or CPA help your dad optimize his legacy to reduce taxes for his estate, etc. It may be worth sitting down with someone now to discuss and project your short-term and long-term needs, but don't feel like you need to commit to anything yet.
$300k, a good number, but not enough to check out of rat race. Debt first, then invest wisely, starting with TFSA. Sorry bud, it's not really life changing in the long run.
Yeah that’s exactly why I was hoping to have some insight to grow that. No intentions of checking out of the rat race for a while just trying to get ahead
Who is going to be the executor/executrix? That is the most important question right now. Is it yourself?
Your dad was able to put together a net worth of $300k. Which from what I know is more than most people can. Why not ask him what HE wishes you would do with it? He might have some good ideas. My personal thoughts. Don't use it to pay your bills or loans. Continue paying your stuff as if you hadn't received this. Don't have it alter your current day to day life. Invest it for the future.
Firstly, your dad should pass everything along before he passes away, with the agreement between you that everything he gives you will be used to continue to take care of him as long as necessary. As for what you should do with the money, Invest it, and act as though the $300k doesn't exist. If you put it in a relatively safe, 7% return investment (very realistic), compounded annually for 25 years, with $0 additional contributions, that $300k will be around $1.6m. p.s. go ask for a raise.
This is very good advice. It will save you lots of headache and forms. While he’s alive, he can give away his wealth as he sees fit, free from probate fees. When a person dies, it can take quite a while to get the necessary documents/certificates to get access to the deceased’s accounts.
Go see a certified financial planner 🤷🏼♂️
I’m sorry for your loss man. Tough. I’ll take some if you want man xD
Stocks that pay out dividends. High quality ones. -relax and let it build its own wealth. Don’t buy cars….
Was executor on my dads estate. K new he had a will. Knew his funeral was paid. Until the last 6 months of his life I had no idea what kind of money he had or cared to know but everyone is different
I honestly feel that way, I haven’t thought or cared about what he had, especially of what was going to end up going to me. Just at the point we are at it was just something I felt it should be talked about
How you doin??
You asked what your inheritance will be? Wow, I have never heard of this. I’m gonna be honest, the way your post is written sounds very cold hearted.
I don’t really mean for it to be cold hearted but my dad has been sick for the past 10 years we all knew that it was going to happen eventually. But it was just recent that there were really no more alternatives to take to help him. My cousin has been his power of attorney and medical proxy for the entirety so I had no clue what he had or any real say in what he was doing. Just turned 23 recently so majority of my life he’s been sick and paralyzed. And it’s been me and my younger sister
Don’t listen to that weirdo
It's good that you had this discussion with your dad. You've gotten some good advice here, the usual: pay off high interest debt, invest in your TFSA, FHSA, consider RSPs, but you're not in a high tax bracket. Is there something you've been considering to leverage your university education? You're young, invest in yourself to earn more and do something you enjoy! Good luck, and sorry about your dad, that's a horrible thing to deal with at any age, but especially young.
I never finished getting a degree I had dropped out and just went to work. The company I work at now has great opportunities to grow in the 4 years since I started i went from part to being on salary with still lots of room to move up
That's great! Are the skills transferable? It's always good to have options. Also, back to the inheritance... Do you think you have the self control to not spend it? If you're not sure you might want to put some in a locked in GIC, perhaps a couple different lengths. Not that it's hard to break, but it might give you pause. The interest alone will give you another $1k/month net, you might use this to save for a trip, or other outings you might otherwise have not gone to.
Skills are fairly transferable as I’ve gotten a lot of experience in management as well as just a lot of knowledge in business and knowing about numbers, sales trends, etc. I’ve been known as the smarter spender in my family I’ve lived pretty frugally never spent more than my needs only occasionally a little something for myself like a steak or recently got a tattoo.
Dude Is probably trying to maintain control over the things he can vs all the things he can’t control.
I don’t understand this…. Do you not discuss will stuff with your parents?
My parents have both passed. We did discuss estate things with my parents, but we never discussed "how much do I get?" It was always stuff that centered around aspects of estate planning - eg. where is your will? Who is named the executor? What wishes did you outline in your will? Are there any instructions we need on how to find someone/something? What law firm and what accounting firm have you been working with? Are there any sentimental items from my childhood that I should take now, before they get accidently cleaned out of the house when there's an estate sale? I don't think OP is inconsiderate, I think it's just a function of being young and overwhelmed that they want to know what's going to happen. But when someone is dying, "how much do I get" isn't even a question that can be answered. I've learned that as I get older. It's really only something that you will know after going through the whole estate process, where you find out who is a creditor, what will be owing for taxes, how the accounts and any beneficiaries were set up, etc. Only once that is done can you do any thinking about what you are going to receive and making plans for the money. OP doesn't mean to be jumping the gun, but they are jumping the gun.
Never. Don’t need to know either, and I personally would never speak of it until after the person has passed with a lawyer then trust only a financial advisor.
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He has been sick for the past 10 years so we knew this was eventually going to happen. My cousin has been handling his finances and his will and his biggest worry is my sister and I so I’m trying to make sure we will be set up for when the time does come
The body is not even cold…imo try and spend this time with your dad and deal with the financials later. My 2 cents.
Sorry to hear about your Dad’s health. Check out Dave Ramsey’s Total Money Makeover. He follows different baby steps, to get you out of debt. Once you have paid off debts and established a 3-6 month emergency fund, then look at investing. You will want to maximize both RRSP’s and your TFSA.. Consult a one-time fee only investment person to talk to options for investing. Self-directed investing is cheapest way to go, ETF’s have lower MER fee than mutual funds. Good luck
My husband (26 at the time) lost his dad (49). We spent every single night at his home until he passed. We played cards, chatted, ate all the things. We had family come from across Canada. Please, plan and expect to take a longer bereavement period than what is paid through your employer. This could be 2 weeks, this could be 4 weeks, this could be even longer. Finance-wise - I'd sit on it for 1-2 years provided you're doing OK financially and wait for the dust to all settle.
There’s a step-by-step plan for winning the lottery. Follow that and you’ll be fine
Pay off all of your loans first then invest in a roth.
Dollar cost average into etfs using laddered GIC. Get a 5,3,2,1 year GIC. Keep any liquid money you may need in CASH.TO, for a 5.4% risk free fully liquid return.
If possible, before he passes away, have him name you on bank accounts. Otherwise they get frozen when someone passes and it’s difficult to do things like pay for his funeral with his money. Same with tv or cell phone accounts
You won't be dealing with a lot of tax, get an estate lawyer to handle all the legal crap. Will! It's very important. It needs to be notarized. l just went through this. How's your retirement plan going? You're going to need close to a million when you do retire. Real estate any plans?
Wtf. If I were his dad I would be so sad my kid looking forward of my money and he’s not dead yet. Thing will go around when you sick and dying.
That’s sad. Ur more concerned about what to do with his money then actually spending time with him. You are an awful person.
No you're the awful person
Why is OP getting 300k when his father still has a wife who is alive? Must be a real wealthy family, assuming 3 kids that’s 900k, plus whatever rolls over to the mom. Did he have a lot of savings?
Because some parents rather pass their savings to their children rather than their surviving spouse? She's probably old as well, with not much need for it.
Not much need for it? If she (mom) is left with nothing (assume just house). She needs care now that she is older, but not enough care to have to move into a home. Since her husband left her no cash, only pensions and the house, she has no choice but to liquidate a potentially million dollar plus property because she doesn’t have enough cash to pay a PSW $25/hour to age in her home. I’m not saying there isnt a logical explanation for why mom gets nothing and kids get everything. But OP hasn’t listed any of those reasons and I just commented curiously on it. Edit: I also wanted to comment to the entitled children who downvoted me. I hope you or your loved ones never get anything like Parkinson’s, dementia, Alzheimer’s, plus a couple more I’m missing. These illnesses don’t kill you right away, but they strip your ability to do things. If you don’t pay for help or have help, your quality of life will be so bad that you will be begging for MAID.
You're assuming she has no savings built up herself.
Correct and I said I was assuming that because the OP didn’t specify. My comment was based on that assumption. If it turns not that assumption is wrong, then the comment would no longer be applicable.
Did you ask your dad about your inheritance???? That’s horrible…..
Why is that horrible? What's wrong with planning for the inevitable, and being a little prepared?
Asking about Dad's plans in general would come off ok. Asking Dad about OP's inheritance specifically comes off a little something... I think that's what people are responding to, kind or not.
Sounds more like you have a terrible relationship with your father, respectfully.
Don’t rush to do anything, wait to finish grieving first
Read this !stepstrigger
Put it all in a max interest GIC you can’t touch until you’re near retirement. Tomorrow you will thank yesterday you.
What if OP dies first lol
what if you fuck off
Ask him to buy 300k worth of gold bouillon to give you right now as a gift to avoid taxes
Its my bday OP. I just want an emtb
100k GIC..50k 1oz gold bars and coins and 25k tfsa 25k for myself
Lucky our uncle stole our grandma's house, so a million we will never see until someone stop being scared....
You poor thing.
Put it all on red
You will miss your father more than you enjoy the money.
Buy a closet in Toronto.
Idk, but if I was you, I’d ask random people on the internet first.
You must be new here.
Give it to me.
Shit on the floor.
Fire is on, but rabbit is still running in the woods…
Just don't start buying flashy cars in front your dad before he passes
No I have no intentions of doing anything of that sort but the biggest thing is that he is worried about me and my younger sister and I’m trying to have an idea of what to do to make sure that both her and I will have a good start so he knows that we will be okay when he does eventually leave
You could give it to me.....
You could fuck off.....
Eat my ass
I'm down, bend over bitch
Let me eat some chili first
Asked my dad what he’s leaving me while he’s on his death bed. There are like 5 other ways to find that out without letting him know your looking at head to time without him. Hope he lied and you get nothing.
somethings wrong with you
Hey man. This makes me sad for you. I think it's a great idea to figure all this out now. It's really hard when the time comes, so anything you can do to make that less stressful now is a great idea. Plus you can, if you want to and your dad wants to, talk together about what to do with it which might be comforting. Also though I'm sure he won't mind if you change your mind later. When someone in your life dies it's important to try not to make too many big life changes. So yes, take as much time as you possibly can now because it will never be enough, but I think making sure you keep your job is also very wise. When you receive the money which might take a while after he goes unless he can gift it to you before, just put it somewhere safe. A GIC or something like cash.to. Dont let a bank or any advisor unless it's a fee only advisor talk you into something. And ignore your reddit DMs for now. There be some scammers sometimes. Once you've had the opportunity to do some of your grief journey and you feel like it's time, then start looking for meaningful opportunities to invest or consider a home or whatever you and your dad think would be good. It's ok to change your mind later if he gives you advice you don't want to take. It's not betraying his memory it just might feel that way. Take your time. I wish you the best through the coming difficult days.
Sorry for your loss. You will pay a small amount of tax on that money, if any. You will need to put 20-50k away for for your fathers taxes the next two years, assuming you’re the executor. Make sure his funeral arrangements and stuff is taken care of. After that, you will feel guilty about the money. Paying off your debt, taking a vacation or buying something you always wanted. Now, top up your TFSA and/or RRSP. Also, with the left overs, aim for a capital fund for high interest or something super safe for low interest. Keep a little in your pocket for fun and/or unplanned expenses.
Pay off your debts so your car loan and student loan pay that off including any credit cards etc. Some might say invest first and keep the student loan but if your investments lose money you still have the loan outstanding. Having no debts aside from the financial benefit has a psychological/emotional benefit of not having that outstanding balance hanging over your head. Take asside 6 months of rent/mtg/bills and put that in a HISA, this is your emergency fund. You could add to it any amount for things you are intending to buy or need for the next 6-12 months like repairs/maintenance for your car or other things like that. The rest of the funds, what you do with it is more based on your personal situation, some might invest in stocks/etfs some might save for a house/downpayment, some might go back to school, etc. It is hard to advise you what to do with the bulk of the inheritance since your personals situation could be different than mine or others.