Should Christina use her entire early inheritance to pay down the mortgage?

Christina, in her 40s, is about to receive $500,000 from her parents as an early inheritance. She and her husband have two young children and a $450,000 mortgage on their home. Her husband would love the mortgage paid off, but they may want a bigger house closer to work, and she worries about what happens to the money if the marriage ever ended. Allan notes that inherited money kept in her own name may be protected in Ontario, but that protection can be lost once it is mixed into joint accounts or the mortgage, and he suggests a marriage contract if she goes that route. He then lays out four paths: pay down the mortgage, invest, spend, or gift. He compares the mortgage rate with expected returns, and asks what being debt free would do for her stress and freedom. Waiting until the housing decision is clearer may be the best first move, and a scenario based plan can help test each option.