@
macw1960 sorry to hear about someones passing but congrats on the gift especially since it was unexpected.
I would tackle the mortgage by either paying it out outright or doing your pre-payments.
Also another great idea is the TFSA for both of you as suggested, that will be a nice cushion for retirement or savings in the long run.
Are there any renovations that would make your lives easier in the long run, having said that, do ask for references etc so that you get what you pay for. The renovations would increase your property value in the long run.
When MIL got an inheritance from her dad's passing, I called our accountant because she doesn't have one and the accountant said DO NOT ABSOLUTELY DO NOT put those funds in anything that will be taxable
ie RRSP as that is $ that you do not have to pay on your inheritance so why would you put those funds into something that you will get taxed on.
I would suggest calling your accountant because they have not gain from giving your advice, however, Banks and investment brokers have lots to gain from giving you advice.
Best of luck in your decisions.