{"id":659559,"date":"2026-10-28T12:34:10","date_gmt":"2026-10-28T12:34:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/659559\/"},"modified":"2026-10-28T12:34:10","modified_gmt":"2026-10-28T12:34:10","slug":"four-elements-to-consider-when-passing-on-wealth-early","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/659559\/","title":{"rendered":"Four elements to consider when passing on wealth early"},"content":{"rendered":"

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

Leaving an early inheritance allows parents to see how the next generation enjoys the funds, but that can be a mixed blessing.SurfUpVector\/iStockPhoto \/ Getty Images<\/p>\n

The idea of transferring wealth to the next generation early has gained traction among Canadians, whether to support a large purchase or to see children and grandchildren enjoy the funds. But giving while living can be complex. <\/p>\n

For advisors, guiding clients through the process can ensure giving is tax-efficient and makes sense for all family members.<\/p>\n

According to an Edward Jones Canada survey<\/a> conducted late last year, half of Canadians expressed a desire to leave part of their inheritance before they die, with 57 per cent of those intending to help loved ones with home ownership.<\/p>\n

\u201cThe real reward of building wealth is seeing it make a difference for your kids while you\u2019re still able to see that impact,\u201d says Elke Rubach, president of Rubach Wealth in Toronto. \u201cBut a generous intention requires a very thoughtful plan, because once the money\u2019s gone, it\u2019s gone.\u201d <\/p>\n

Here are four elements to consider when giving while living:<\/p>\n

1. Giving shouldn\u2019t be impulsive<\/p>\n

Some clients make commitments to give adult children money before taking time to understand if it fits with their own retirement plans, says Joe Curry, financial planner and president of Matthews + Associates in Peterborough, Ont.<\/p>\n

\u201cThat\u2019s a big part of why we want to see our clients on a fairly regular basis, so that we\u2019re having those conversations,\u201d he says.<\/p>\n

Just because parents can write the cheque today, Ms. Rubach says, doesn\u2019t mean they can afford the gift. They may have money tied up in their business or properties that have fluctuating values.<\/p>\n

\u201cIt has to be an ongoing conversation between the parents, the advisor and the family,\u201d she says. \u201cThe givers need to know their number: How much do you actually need to comfortably live through hell and high water and never become dependent on anyone?\u201d <\/p>\n

Adam Chapman, certified financial planner at YES Money in London, Ont., doesn\u2019t discuss giving while living until a few years into the relationship with clients, so he has time to observe how they manage their money, communicate and react through a down market.<\/p>\n

\u201cThose things are good mental assessments for the advisor to have before they even consider one of these conversations,\u201d he says.<\/p>\n

This preparation can also be helpful for adult children receiving money. Knowing the gift has been planned over several years can reassure them if they\u2019re worried their parents haven\u2019t saved enough, Mr. Chapman says.<\/p>\n

2. Learn to let go<\/p>\n

Aside from affordability, the most important conversation Mr. Chapman has with clients is preparing them to let go after a gift.<\/p>\n

\u201cLiving gifts are far harder than inheritance because you\u2019re here to see the benefits but also what might go wrong,\u201d Mr. Chapman says.<\/p>\n

Advisors can discuss clients\u2019 expectations for the gift while helping them give it without excessive parameters.<\/p>\n

\u201cOnce it\u2019s not yours, it\u2019s not yours,\u201d he says.<\/p>\n

3. Fair isn\u2019t always equal<\/p>\n

Many times, clients giving large sums want to ensure each child receives an equal amount, but that isn\u2019t always what happens.<\/p>\n

\u201cWe tell everybody: fair isn\u2019t always equal, just depending on the circumstances,\u201d Mr. Curry says. <\/p>\n

When gifts aren\u2019t equal, communication is vital to make sure the purpose is clear, he adds.<\/p>\n

In one example, clients gave a large amount and extended a loan to one child for a down payment on a home after a divorce. The parents had no plans to equalize the gift with their other children. The loan was included in the will.<\/p>\n

The clients held a family meeting to ensure everyone understood the intent of the gift and confirm the parents would help the other children financially if they were in a similar situation.<\/p>\n

Ms. Rubach also recommends documenting everything so everyone understands what\u2019s a loan, what\u2019s a gift, what\u2019s an advance inheritance and what would happen if things change.<\/p>\n

4. The big picture strategy<\/p>\n

Clients often have ideas for giving money. It\u2019s the advisor\u2019s job to take the discussion back a level, Mr. Curry says, to find out what they\u2019re trying to achieve and the most efficient way to carry it out.<\/p>\n

For example, giving cash, transferring investments and moving an asset out of a corporation have different tax consequences, Ms. Rubach says. <\/p>\n

What the money is used for \u2013 whether a matrimonial home or financing a business \u2013 may require additional planning.<\/p>\n

\u201cLet\u2019s understand this before we proceed. That might mean changing the amounts, staging the transfer [or] choosing different structures for different kids,\u201d she says.<\/p>\n

\u201cThe ultimate recommendation has to earn its place in that family\u2019s plan. So, seeing the whole picture \u2013 not just, \u2018I want to give money.\u2019\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Leaving an early inheritance allows parents to see how the next generation enjoys…\n","protected":false},"author":2,"featured_media":659560,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[697,114,268,8150,85,46,14093,266,267],"class_list":["post-659559","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-appwebview","tag-business","tag-finance","tag-globe-advisor","tag-il","tag-israel","tag-noastack","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/659559","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=659559"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/659559\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/659560"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=659559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=659559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=659559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}