Navigating the financial complexity you’ve just inherited

When someone you love dies, you’re left with more than grief. You’re often left with responsibility – financial structures you didn’t set up, accounts you’ve never seen, and paperwork that can leave you wondering just what their intention was. 

It’s common to feel overwhelmed. Many widows and adult children say the same thing: “I have no idea where to begin”. 

Let’s start with giving permission to feel what you’re feeling, and some practical steps to help make sense of what you’ve inherited. 

Inheritance isn’t just about money 

Whether it’s a family home, shares, or a web of trusts and superannuation, what you’ve inherited is more than financial – it’s emotional. 

Grief often walks hand-in-hand with guilt (“Do I deserve this?”), fear (“What if I stuff it up?”), and loyalty (“I should leave things as they were”). That emotional load can be just as heavy as the financial one. 

Part of this might be the desire to just leave things as they are, which often ties into a worry about disrupting the legacy your loved one has left behind.  

However, there will often be some things you do have to do.  

1. Inheriting a self-managed super fund (SMSF) 

If your late partner managed an SMSF, you might now be the surviving trustee – or about to become one. This isn’t just a title. It’s a legal responsibility. 

Here’s what to keep in mind: 

• Check the deed. It outlines who can step in as trustee or director. 

• Act quickly but calmly. Delays can create compliance issues with the ATO. 

• Consider whether to keep the fund. Running an SMSF comes with admin and regulatory responsibilities. People in your position will face the choice of either keeping the fund or winding it up and roll funds into a simpler structure.

You don’t need to take on something that feels too big. A financial adviser can help you decide whether keeping the SMSF is still the right move. 

2. Managing a family trust after a death

Family trusts often come with a long history and strong emotions. When the appointor or trustee dies, there may be confusion about who takes over. 

What to look out for: 

• Who controls the trust? The appointor holds key powers. If they’ve passed, the trust deed may explain who replaces them – or you might require legal advice. 

• Understand your role. If you’re now a trustee, you must act in the best interests of all beneficiaries. That’s not always easy, especially when family tensions are involved. 

• Don’t rush. Take the time to understand the assets, beneficiaries, and legal obligations before making changes or distributions. 

Trusts are often designed to protect wealth. But they can also feel like a trap if you’re trying to navigate them without support. 

This can be a really complex area of your financial picture – find the professionals (financial advisers, accountants, lawyers especially) to help you work out the best next steps for you.  

3. You’ve inherited a share portfolio 

Even if you’re comfortable with investing in the share market, a parcel of shares may seem simple but the tax side often is not. 

Here’s what to know: 

• Capital gains tax (CGT). You may inherit the original cost base, not today’s market value. That affects how much tax you’ll owe if you sell. 

• Dividends and franking credits. These can impact your income tax and estate reporting. 

• You can make changes. It’s okay to sell or rebalance the portfolio so it suits your needs and comfort with risk. 

Holding on out of fear or sentiment is common but not always wise. Your finances need to reflect your future, not your past. This is where a financial adviser can really help you chart your new direction. 

Moving forward 

If you’re feeling frozen, you’re not failing. You’re human. Inheriting complexity after loss is one of the hardest transitions you can go through. 

But it’s also manageable, especially with the right advice. 

Start with one conversation. One question. One step. Clarity comes gradually, and so does confidence. 

You don’t need to become a financial expert. You just need someone to help you navigate what you’ve inherited so you can honour your loved one and take care of yourself at the same time. 

Visit Jordan at PlanningSolo or Find a Planner near you!

The Money & Life website is operated by the Financial Advice Association (FAAA). The views expressed in this article are those of the author and not those of the FAAA. The FAAA does not endorse or otherwise assume responsibility for any financial product advice which may be contained in the article. Nor does it endorse or assume responsibility for the information.