{"id":378810,"date":"2025-12-31T06:14:09","date_gmt":"2025-12-31T06:14:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/378810\/"},"modified":"2025-12-31T06:14:09","modified_gmt":"2025-12-31T06:14:09","slug":"globe-advisors-best-of-2025-the-great-wealth-transfer-takes-centre-stage","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/378810\/","title":{"rendered":"Globe Advisor\u2019s Best of 2025: The great wealth transfer takes centre stage"},"content":{"rendered":"

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

The great wealth transfer requires navigating complex tax issues, leveraging financial tools to clients\u2019 advantage (such as insurance) and preserving family unity.Alexandr Lukin\/iStockPhoto \/ Getty Images<\/p>\n

Canada is in the throes of its largest-ever wealth transfer. By the end of this decade, more than $1-trillion in assets are expected to have been transferred from aging baby boomers and older generations to their heirs \u2013 whether it\u2019s their spouses, children or grandchildren. <\/p>\n

This unprecedented event is reshaping the financial landscape for families, businesses and financial advisors alike. It\u2019s not just about passing down assets, but when \u2013 whether in life or after death. It\u2019s also about navigating complex tax issues, leveraging financial tools to clients\u2019 advantage (such as insurance) and preserving family unity.<\/p>\n

Financial advisors play a key role in guiding clients through this transition as well as helping families avoid costly mistakes and make the most of the rules available to them. Here are 10 Globe Advisor articles published in 2025 that explore some of the estate planning and wealth transfer issues coming up more frequently in advisors\u2019 conversations with clients:<\/p>\n

Should adult children be added to parents\u2019 real estate title?<\/a><\/p>\n

Rising housing costs and a sharper focus on estate planning have aging parents wondering if they should add their adult children to their real estate title before they pass away \u2013 a move that could help the asset bypass probate. However, advisors say the strategy comes with risks, such as parents losing control of the property, feuds between siblings and potential tax implications.<\/p>\n

Buying life insurance for adult children is a growing niche in the great wealth transfer<\/a><\/p>\n

Many older Canadians recognize that their children are struggling, and advisors can present them with two types of insurance-related strategies. In the past, the key strategy was paying the premiums for their adult children\u2019s term coverage. Now, high-net-worth clients are starting to use permanent life insurance as it allows families to pass significant wealth to the next generation in a tax-efficient way.<\/p>\n

Life insurance is a useful estate planning tool, but purchasing a policy in retirement isn\u2019t for everyone<\/a><\/p>\n

Life insurance can be a valuable estate planning tool for some retirees, whether for offsetting tax liabilities, equalizing an estate, or charitable giving. But determining whether life insurance fits into a retired client\u2019s plan and how much to purchase requires a deep dive into their retirement and estate planning goals, as well as a careful cost-benefit analysis.<\/p>\n

Financial considerations when giving and receiving an early inheritance<\/a><\/p>\n

Early inheritance can allow parents to see their hard-earned money make a difference in their children\u2019s lives, but careful planning is required to maximize the benefits and avoid unintended consequences. Alexandra Horwood, portfolio manager and investment advisor at Richardson Wealth Ltd. in Toronto, writes that wealth advisors should support parents who are gifting based on each child\u2019s circumstances. <\/p>\n

The silent risk in wealth transfers: families who don\u2019t talk about it<\/a><\/p>\n

Receiving an inheritance should be more than a transaction. After all, it\u2019s not just about money. It\u2019s about values and legacy. Yet, clients often shy away from the thorny decisions involving passing wealth from one generation to the next. Many erroneously believe that a will and an executor are sufficient to address potential issues. A larger matter is defining family beliefs and goals around wealth.<\/p>\n

Why it\u2019s crucial to include RESPs in an estate plan<\/a> <\/p>\n

Parents and grandparents should include directions about registered education savings plans (RESPs) in their wills to ensure child beneficiaries receive the benefits of the plan. Assets in an RESP belong to a subscriber, the person who opens the plan and makes contributions to it. If the subscriber dies before a child is enrolled in a qualifying program, the assets in the RESP belong to the subscriber\u2019s estate to be divided among the residual beneficiaries according to the terms of the will. It means the child beneficiary might never receive the assets.<\/p>\n

Some inheritances are more burden than gift. Here\u2019s how to manage them<\/a><\/p>\n

Not all inheritances fit neatly into a financial plan. Elke Rubach, financial advisor and founder of Rubach Wealth in Toronto, had a client who found out the hard way when she inherited a life-sized taxidermy moose. \u201cIt was her grandfather\u2019s pride and joy, but she lived in a modern condo and couldn\u2019t bear to have a massive, glassy-eyed moose in her space.\u201d <\/p>\n

Why widows face a significant income drop and fewer tax advantages<\/a><\/p>\n

Couples often take advantage of pension income splitting to lower their overall net incomes, but that opportunity disappears when a retired client\u2019s spouse dies, often resulting in higher taxes. Survivor benefits from workplace pensions are considerably lower, and CPP and OAS, in most cases, do not pass on to the surviving spouse at all.<\/p>\n

Four ways grandparents can support their grandkids \u2013 and it\u2019s not just about giving money <\/a> <\/p>\n

Many grandparents are looking for ways to support their grandkids but are unsure of the best approach. Some may contribute to a TFSA or FHSA for eligible grandchildren. But for younger grandchildren under age 18, support may be more hands-on. Here are four financial and non-financial trends advisors are seeing among grandparents who want to help their grandchildren.<\/p>\n

Why some clients are producing documentaries and books as part of their legacy planning<\/a><\/p>\n

More clients are realizing that estate planning isn\u2019t only about who gets what \u2013 it\u2019s also a way to share personal stories. Some are turning to documentaries, podcasts and books for this purpose. Some advisors shy away from discussions about how clients will be remembered, thinking it\u2019s outside their jurisdiction. But others see the value in exploring these deeper issues to help clients preserve their legacy.<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: The great wealth transfer requires navigating complex tax issues, leveraging financial tools to…\n","protected":false},"author":2,"featured_media":378811,"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-378810","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\/378810","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=378810"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/378810\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/378811"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=378810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=378810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=378810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}