Transfer of wealth to next generation <\/p>\n
As Canada\u2019s population ages, a massive wealth transfer is looming \u2014 one experts say many households aren\u2019t ready for.<\/p>\n
The Great Wealth Transfer, which predicts a staggering $1-trillion reallocation of wealth, has raised concerns about Canadians’ preparedness for what will happen to their estate once they pass away.<\/p>\n
This concern is not without merit. According to the The Inheritance Gap Report<\/a> from Willful, only 51% of Canadians have a will, and nearly a quarter have no end-of-life planning documents at all. Younger Canadians are especially unprepared, with 62% of Gen Z report having no estate plans in place.<\/p>\n Even when people recognize the importance of planning, follow-through is limited. While 75% of Canadians believe estate planning is important, 46% say their financial advisor has never discussed it with them. Family conversations are often incomplete too. Although 59% of Canadians say they\u2019ve talked about end-of-life wishes, only 36% both know their family\u2019s wishes and have shared their own.<\/p>\n Estate planning isn\u2019t just for the wealthy or elderly. Without a plan, Canadians face legal disputes, higher taxes and unintended consequences for loved ones. For example, if someone dies without a will, provincial laws determine who inherits their assets, which may not align with their wishes. Families may end up in conflict over property or finances.<\/p>\n Digital assets, including online accounts and cryptocurrencies, can be lost without clear instructions. Beyond financial issues, parents without a will risk leaving guardianship of their children to the courts. Proper estate planning, however, helps prevent these problems and ensures your wishes are respected.<\/p>\n Importantly, estate planning also goes hand-in-hand with legacy planning<\/a> \u2014 thinking about the values, assets and impact you want to leave behind. That could mean funding a grandchild\u2019s education, supporting a cause you care about or ensuring a family business continues for the next generation.<\/p>\n Read more: What is the best credit card in Canada? It might be the RBC\u00ae British Airways Visa Infinite, with a $1,176 first-year value<\/a>. Compare it with over 140 more in 5 seconds<\/p>\n A complete estate plan goes further than naming beneficiaries. It can include trusts for minor children or family members with special needs, charitable donations or business succession plans. Life insurance, powers of attorney for health and finances as well as a record of digital assets are also key components of a modern estate plan.<\/p>\n Statistics Canada data shows Canadians increasingly hold complex assets<\/a> \u2014 from savings and investments to small businesses \u2014 making clear instructions more important than ever.<\/p>\n Tips to get started<\/p>\n Create a will and update it regularly<\/p>\n Designate powers of attorney for finances and health decisions<\/p>\n Document digital assets and instructions for their management<\/p>\n Consult professionals such as lawyers or financial advisors<\/p>\n Consider trusts or life insurance to provide for dependents or cover taxes<\/p>\n Explore legacy planning to align your wealth with your values and family goals<\/p>\n With an estimated $1 trillion set to transfer over the coming decades, Canadians who take proactive steps now can protect their families, avoid costly mistakes and ensure their legacy is preserved into the next generation.<\/p>\n