Clear communication and documentation can prevent confusion about inheritances and preserve family harmony.SENRYU/iStockPhoto / Getty Images
Not all inheritances fit neatly into a financial plan – in some cases, they don’t even fit into a living room. Elke Rubach’s client found out the hard way when she inherited a life-sized taxidermy moose.
“It was her grandfather’s pride and joy, but she lived in a modern condo and couldn’t bear to have a massive, glassy-eyed moose in her space,” says Ms. Rubach, financial advisor and founder of Rubach Wealth in Toronto.
So, Ms. Rubach came up with a solution that was both practical and heartfelt: the moose was donated to a local outdoorsman’s club, where it was displayed proudly alongside a plaque in her grandfather’s honour.
While some view inheritances as a blessing, others find them to be burdens. “We see it all,” she says, “from unwanted gifts tied to family expectations to ethical dilemmas surrounding wealth that clients find troubling.”
Advisors can play a crucial role with clients, balancing the technicalities of financial planning with the deeply personal aspects of wealth, legacy and family dynamics.
Ms. Rubach recalls another client who inherited a collection of antique chamber pots left by a relative who assumed they were coveted treasures.
“Some pieces were valuable; others were – well, not,” she says. The collection was sorted, auctioned and donated, with the proceeds funding a vacation. “My client joked it was the most useful gift their relative could have given.”
Another client inherited her father’s business. “She had no interest in running it but felt trapped by the weight of family expectations,” Ms. Rubach says.
Together, they developed a plan to sell the business to someone who would honour its legacy, giving the client the freedom to focus on her career.
The experience underscored the importance of having open discussions about wealth, expectations and what family members truly want.
“Most families avoid talking about money,” Ms. Rubach says. “But silence can lead to surprises and even resentment. While these can be hard conversations, they prevent so much heartache down the line.”
Naunidh Hunjan, president of Hunjan Financial Group Inc. in Mississauga, has also faced challenges with clients who inherited businesses.
One client inherited a commercial property but had no experience managing it. “His first instinct was to sell,” Mr. Hunjan says. “But I advised him to take some time to learn about the business and its value.”
The client eventually hired a property manager, transforming what initially felt like a burden into a profitable, low-maintenance asset.
Mr. Hunjan stresses the importance of preparation.
“In a perfect world, business owners would purchase a life insurance policy specifically to pay taxes and avoid forcing their heirs into tough decisions. But when that doesn’t happen, education and strategic planning can make all the difference,” he says.
Ethical considerations can also complicate matters. One of Ms. Rubach’s clients inherited a portfolio of investments tied to industries they opposed strongly.
“Inheriting wealth doesn’t mean you have to accept it as is,” says Ms. Rubach, who helped her client divest from those industries, reinvest in socially responsible funds and establish a charitable fund to support causes they cared deeply about.
Balancing financial success with personal ethics requires a strategic yet empathetic approach. Melissa McRae, certified financial planner with McCrae Wealth Management in Winnipeg, highlights the importance of active listening.
“Inheritance decisions are often emotionally charged,” she says. “It’s important to understand the true concerns – whether they’re about fairness, responsibility, or the burden of maintaining a family legacy.”
In one instance, Ms. McRae worked with a client named as the sole executor and beneficiary of an estate shared among several siblings. The situation created tension within the family, but by addressing the client’s concerns and exploring options like hiring a professional service to handle the estate on their behalf, they were able to find a path forward that respected both the deceased’s wishes and the family dynamic.
Clear communication and documentation can prevent confusion and preserve family harmony, Ms. McRae says, especially regarding powers of attorney, health care proxies and the selection of an executor.
Ultimately, advisors help guide clients through emotional scenarios in addition to providing financial advice. Even sentimental items can spark unexpected conflict.
Ms. Rubach describes a family drama over a couch – an unimpressive piece of furniture to which one client was so attached they were willing to trade valuable artwork to keep it.
“The couch held deep emotional value for her,” Ms. Rubach says. “The rest of the family was happy with the trade as the artwork was worth far more, but it’s a great example of how inheritances are rarely just about money. They’re about memories and meaning.”