How to prepare for life as a single-income family + MORE Jun 30th

For the first seven years as a parent in the mid-90s, Amundsen stayed home to raise two young children while her husband became the sole provider for the household. About 30 years later, she still draws on her experience when speaking with her clients. Pre-planning tops her list. 

Try a single-income stress test

Start with a trial and run your household for anywhere between three to six months on a single income, she said. That trial will build confidence and help you understand your needs and wants while deciding what you may need to change about your lifestyle, she added.

Transitioning to a single-income household requires adjusting and cutting back on some expenses, said Tina Tehranchian, senior wealth adviser at CI Assante Wealth Management Ltd…

Taxation of an inheritance

First off, the receipt of an inheritance is generally not taxable. Most or all tax is paid by the estate of the deceased, and the after-tax proceeds are distributed to the beneficiaries. 

There can be exceptions. If you inherit real estate and sell it later, subsequent appreciation may be considered a taxable capital gain. If you inherit private company shares, depending on the planning you do post-mortem, a withdrawal from the corporation may be considered a taxable dividend to you. 

But generally, a cash inheritance is tax-free to the beneficiary because any applicable tax has already been paid.

Who does an inheritance belong to?

In most cases, a will leaves an inheritance to a child rather than to a child and their spouse jointly, although joint gifts to a couple are possible…