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By Jason Heath, CFP on September 9, 2025
Estimated reading time: 5 minutes

By Jason Heath, CFP on September 9, 2025
Estimated reading time: 5 minutes

Inheriting stocks? Learn the tax rules, when to sell, and how to decide if keeping inherited investments makes sense for your portfolio.

An inheritance can be comprised of cash, securities, real estate, or other assets. When you inherit securities like stocks, there are income tax and strategic considerations. Here are some that you should keep in mind.

When a spouse or common law partner is a beneficiary, assets can be transferred to them on a tax deferred basis. So, for this section, we will assume a non-spouse beneficiary.

For non-spouse beneficiaries, inheriting stocks usually triggers tax consequences at the estate level, not for the individual. The estate settles any taxes owed before distributing the after-tax proceeds to the heirs.

A registered account like a registered retirement savings plan (RRSP) or registered retirement income fund (RRIF) is fully taxable based on the account value. The market value of the account on the date of death is considered income to the deceased. The tax is payable on their final tax return. Income or growth after that is taxable to the beneficiary:

A tax-free savings account (TFSA) is tax-free at death, but likewise, income or growth after that is taxable to the beneficiary (estate or........

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