By Sarah Powley

(NC)-Receiving an inheritance seems simple enough but it can be a very emotional process. Recognizing challenges and responsibilities that accompany an inheritance can make the process smoother.

“Inheriting a large sum of money can be overwhelming,” said Tom Junkin, senior vice-president of Fiduciary Trust Company of Canada. “Grief, isolation, guilt or family conflict can affect both personal and financial decisions.”

In the midst of such emotions, here are a few simple tips to ease the process:

Take time and resist pressure

Make a commitment to leave your inheritance untouched for about six months to adjust. Consider “parking” your funds temporarily in a secure, interest-bearing vehicle such as a money market fund.

Unfortunately, friends or family may see your inheritance as a golden opportunity for you to invest in their future; deserving charities may arrive at your door; and “hot” investment tips may suddenly come your way.

“These situations are proof positive as to why you should not make any financial decisions for the first six months,” said Mr. Junkin.

Seek professional advice

Inheritance will likely prompt financial, legal, accounting and personal lifestyle questions.

“Your wealth counselor or investment advisor can assist you with ensuring that you have a complete plan that focuses on protecting, growing and transferring your wealth,” said Mr. Junkin. “They can also connect you with professionals, including lawyers, to ensure all the details are taken care of.”

Protect yourself

Make sure you have adequate insurance on valuable property that you inherit. If you are without a will and an enduring Power of Attorney, now is the time to put both in place. If you inherit property, such as an apartment building, or a business that requires active management, ensure you have professionals looking after it.

More information on protecting, growing and transferring your wealth is available on websites, including www.fiduciarytrust.ca.

Credit: www.newscanada.com

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