{"id":304762,"date":"2025-11-25T00:00:07","date_gmt":"2025-11-25T00:00:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/304762\/"},"modified":"2025-11-25T00:00:07","modified_gmt":"2025-11-25T00:00:07","slug":"estate-plans-are-changing-along-with-client-ideas-about-legacy","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/304762\/","title":{"rendered":"Estate plans are changing along with client ideas about legacy"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Advisors should ask clients what problem they’re trying to solve with gifts.airdone\/iStockPhoto \/ Getty Images<\/p>\n

When preparing an estate plan, it helps to work in pencil. That\u2019s because many clients may want to adjust their estate plans, dipping into their savings today to give some away while they\u2019re still alive. <\/p>\n

It\u2019s a trend Christine Conway, certified financial planner and president of Braun Financial Services Ltd., in New Westminster, B.C., has seen firsthand. More clients are questioning whether their hard-earned dollars, formerly earmarked as inheritance, should go toward helping adult children in their 30s and 40s.<\/p>\n

\u201cWe have more people bringing their retirement plans to us and say, \u2018I have to edit it. What does it look like if I give my kids a 20-per-cent down payment?\u2019 I\u2019ve seen the impact of that. It\u2019ll change the trajectory of their lives,\u201d she says of the younger generation receiving that large monetary gift.<\/p>\n

Recent research from Edward Jones Canada<\/a> shows more clients are shifting away from traditional legacy planning. According to the survey results, half of Canadians say they would like to transfer part of their inheritance before they die, often to help loved ones with home ownership.<\/p>\n

That may not be surprising, particularly as younger generations struggle to match their parents\u2019 standard of living, says Julie Petrera, director of financial planning at Edward Jones Canada. Inheritances are becoming less about leaving a dollar amount than about finding a new way to leave a legacy with lasting impact. <\/p>\n

\u201cWe know that financial planning gives people peace of mind. But it\u2019s not just about, \u2018Do I have enough money to gift or did I gift it equally?\u2019 It\u2019s about, \u2018What problems am I solving for the people I\u2019m sharing this with?\u2019\u201d she says. \u201cThat\u2019s the shift.\u201d<\/p>\n

Although there are practical reasons to give money now rather than waiting until after death \u2013 avoiding probate for one \u2013 Gary Teelucksingh, co-founder of the Money Wise Institute in Toronto, says the impulse to give while alive often comes from a different place: the heart. <\/p>\n

\u201cIt\u2019s the joy \u2013 the absolute immeasurable joy people will get from giving and seeing the money being enjoyed,\u201d he says.<\/p>\n

That delight can be amplified by spending part of the gift on meaningful experiences meant for the whole family \u2013 something that resonates with Canadians aged 35 to 44, according to the Edward Jones survey. <\/p>\n

Those experiences might include taking summer vacations together or planning big celebrations for anniversaries, graduations or birthdays. And as parents watch their grown children eschew scrimping and saving just to create a hefty bank balance, some are taking note.<\/p>\n

\u201cThere\u2019s the YOLO aspect to it,\u201d says Ms. Petrera, referring to the \u201cyou only live once\u201d ethos. \u201cIf that\u2019s what people truly value, then that shifts into legacy planning. Especially the younger generations \u2013 they want to have experiences with their parents and grandparents while they\u2019re alive.\u201d<\/p>\n

As an advisor, it\u2019s important to figure out what clients truly want from their savings \u2013 whether it\u2019s to pay for a mortgage, education or family trip \u2013 and then incorporate big spending into retirement and estate plans.<\/p>\n

Ms. Petrera points out that no two families are alike, and their reasons for giving large sums of money are always different. Perhaps the father once found himself in deep debt and never wants his children to experience that stress. Or maybe grandma always wanted to go to university but couldn\u2019t afford it, and wants to pay for her grandchildren\u2019s education. <\/p>\n

By understanding what\u2019s truly driving decisions, there\u2019s less likelihood of family discord when the money rolls out. <\/p>\n

Mr. Teelucksingh says first-generation immigrants to Canada may have grown up believing in sacrifice and resilience, while their Canadian-born children may worry less about ever owning a home. Travelling is higher on their list. <\/p>\n

Yet, if the parent pays for a down payment, it\u2019s one way to negotiate a middle ground. <\/p>\n

\u201cIt\u2019s not about, \u2018I\u2019m right and you\u2019re wrong,\u2019\u201d he says. \u201cBut rather, seeding your values to the next generation. It\u2019s about, \u2018How about we move on a path together?\u2019 I think that gives both sides joy.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Advisors should ask clients what problem they’re trying to solve with gifts.airdone\/iStockPhoto \/…\n","protected":false},"author":2,"featured_media":304763,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[1397,45,49,48,133,5266,2922,131,132],"class_list":{"0":"post-304762","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-appwebview","9":"tag-business","10":"tag-ca","11":"tag-canada","12":"tag-finance","13":"tag-globe-advisor","14":"tag-noastack","15":"tag-personal-finance","16":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/304762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=304762"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/304762\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/304763"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=304762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=304762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=304762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}