After the loss of a loved one, you must make many financial decisions to secure an inheritance. Here are the key support team members who can help you.
Losing a family member is a difficult and emotionally complex experience. That’s why you need a support team that knows how to comfort you and help you deal with the emotions you’re going through. It is equally important to have a financial support team. The reason: A death in the family is often associated with a transfer of assets. Whether it’s making a will, an inheritance, or making important financial decisions, it’s important that your financial support team can guide you through the process.
What happens when a family member dies?
In general, the term “estate” refers to the property of a deceased person, such as investments, real estate, and other valuables. After a person’s death, their estate must be authenticated in order for their will to be valid. If the deceased does not have a will, a court decides how the estate should be divided.
If you are the beneficiary of an inheritance, it is advisable to consult the right professionals to ensure you fully understand the deceased person’s last wishes and make the best financial decisions for you.
Your financial support team
Receiving an inheritance is an exciting experience, but it can also be challenging. Therefore, it is important to work with professionals who can guide you throughout the process and help you make informed decisions.
1. Executor (or Liquidator) or Administrator
The executor (or liquidator) or administrator of the estate is the person responsible for carrying out the instructions set out in the will. Usually this person is appointed by the deceased person before their death – or later, if there is no will, by a court. You can ask him for details if you have questions about the deceased person’s last wishes.
2. Lawyer or notary specializing in estate and probate proceedings
This is the person responsible for the legal aspects of the estate. Obtaining a probate judgment, inventorying assets and liabilities, communicating with beneficiaries, filing documents, and conveyancing, among others. The executor, executor (or liquidator) or beneficiary may engage the services of a lawyer or notary specializing in probate. The services of a probate attorney or notary public can be particularly useful when the deceased person died intestate (without a will).
3. Tax professional or accountant
Canadians are not subject to inheritance tax. In the case of an inheritance, however, tax consequences can arise for them. Some assets, such as investments and real estate, are taxable. Your own tax situation could therefore change after an inheritance. Consult a tax professional to ensure you meet all requirements.
4. Financial professional
An inheritance of money or assets is an empowering experience, but it can also be stressful, especially if the inheritance is large enough to significantly change your financial situation. You can hire a financial advisor who can help you decide if you want to make investments and if so what they might look like. This person will develop a solid financial plan that takes into account your current situation and your short- and long-term financial goals.
5. Legacy Planner
If you don’t have a will, the division of your estate that occurs after your death is likely to be costly. Furthermore, no instructions from you determine the use of your assets. A legacy planner is a specialized financial planner who will help you develop an estate strategy that reflects your values and beliefs. Once you have this strategy in place, you can ask your estate attorney or notary public to help you prepare your will.
When a family member dies, there are many emotional and financial considerations. Make sure you have a financially supportive team throughout the process.
Toronto-based freelance writer Diane Amato enjoys talking about finance, travel and technology.
Expand disclaimersCollapse disclaimersA word from our attorneys
This article is for general information only and does not constitute legal, financial or other professional advice. Please consult a professional adviser regarding your individual situation. The information presented is believed to be factual and up to date, however we do not guarantee its accuracy and should not be construed as an exhaustive analysis of the topics discussed. The opinions expressed are those of the authors at the time of publication and are subject to change. The Royal Bank of Canada and its affiliates do not endorse, express or imply, the advice, opinion, information, products or services of any third party.