What I did with my Inheritance so far

Inheriting money and dealing with not having parents around at the age of 30 can be a daunting experience.

Since I have siblings, the money left behind by our parents were split into portions accordingly. Thankfully, they had a will, which made things a lot easier (will blog about the importance of wills and probate costs).

When I had the money deposited into my bank account, I was VERY tempted to just go out to buy a nice second hand sports car (I was seriously thinking about that!).  Instead of buying a big ticket item, I did go for a bit of a spending spree.

Though this is really pretty, I would give anything to have my parents back with me.

I ended up inheriting:

1/3 interest in my parent’s house;

$32,000.00 in cash (I originally had $77,000.00 in cash, but I had to pay off the mortgage on my parents house, the yearly utility fees, house insurance and  property tax for the house, and legal and probate fees); another’ and

15,000.00 sitting in the Estate account which will be distributed once we receive a Clearance Certificate from the CRA.

What I did with the CASH:

Since I had no plans for the money and I have not maximized my TFSA:

I put $15,000.00  into the TFSA High Interest Savings Account at Tangerine; and

I invested $10,000 into TD Bank’s TFSA Mutual Funds.

The money grew about 1.3% sitting in Tangerine’s TFSA High Interest Account, while the Mutual Funds sitting in my TD Bank grew 10% since January 2014.

What I did with the HOUSE:

We still have not transferred the title of the house yet.  We have been advised by many people to sell the house as quickly as possible so that we don’t have to pay capital gains.

Our parents were pack rats, so it will take us at least 6 months to clean it out with things going into storage.    Since we were finishing up a project that was started by our dad, we did not have any time whatsoever to start decluttering or to clean out the house.  It is currently a money pit for us (house insurance, property tax, utility fees, and etc.).  Trust me, I really want to get someone to at least house sit for us to lower the house insurance cost, but there is just too much “stuff” in there!

Though we still have to clear the house out, we have decided to turn the house into a rental property.  I am hoping that by January 2015, the house would be cleared and we could start renovating it to change it into a two unit rental property (upper and lower).    I will talk about how we came to decide to keep the house in a later post.

In the meantime, what would you do if you inherit an old-timer house from your parents?  Will you sell it as  is, renovate it and sell it, or  knock it down, build a nice house and sell it to make a higher profit?

~The Money Pincher ~

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9 thoughts on “What I did with my Inheritance so far

  1. It’s good to see that you put so much money in a TFSA – have you considered moving the money in the savings account to something that will make you more? With inflation, over time you’ll lose quite a bit on that big chunk of change.

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    • Yes, I want to move the money in the savings account into something that will make me more, but I am a bit reluctant to do so because I am not sure what kind of upcoming expenses I will need to pay (i.e. lawyer fees or fees related to my dad’s project – though the lawyer fees can come out of the estate account, I’d rather just pay it and save some time rather than go through all the process of going to the bank and showing them the bill and asking them to pay, besides I will get reimburse for it afterwards anyway). I think I will keep it there until December and determine how my cash flow is before moving the money into mutual funds or maybe stocks.

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  3. Is there any chance it would be worth the money to pay someone to go in and get a start on the clearing out? Or would that still take too much of your time and attention?

    There’s a little bit of me that’s kind of grateful I didn’t have to deal with ANY of this when Mom passed; Dad went through her things himself but they neither of them have assets I had to worry about sharing (particularly given the sibling situation…) or becoming steward of it any way. It’s an awful lot of work as you well know.

    Best of luck getting it rental ready – I’ve just ventured into that myself and it’s … interesting.

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    • Thanks Revanche!

      I would want to pay someone to go in to start clearing things out, but it’s pretty difficult because we think there are stuff that are quite valuable – my dad’s a collector so we’d need to find someone to also value the pieces and find a market to let it go. So don’t really trust strangers meandering around the house.

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