It is estimated that within a generation more than C$400 billion in wealth will change hands among Canadian Families.
Last year RBC Wealth Management released a Wealth Transfer Report1 providing insight into giving and inheriting wealth across generations. This report, based on data from over 1000 Canadian respondents, reveals essential acumen into what is being called the biggest wealth transfer in history2. Click here to request a full copy of the report.
The Wealth Transfer Report highlights important information in understanding the coming financial changes. Here are some key findings:
- 22 per cent of respondents have a full wealth transfer strategy in place (one in three have done nothing so far to prepare);
- 52 per cent have prepared a Will;
- 54 per cent plan to pass on their wealth at death; and
- 30 per cent plan to give gradually during their lifetime.
- Almost 60 per cent of Canadian parents don’t feel confident that their children will preserve or grow their inheritance, yet nearly 70 per cent listed their children as top inheritors.
- Canadian children remain in the financial dark with only 37 per cent of their parents comfortable discussing all the details of their inheritance plans; and
- 56 per cent of Canadian inheritors had no guidance before receiving their financial windfall.
Educating the next generation
The findings here continue to underscore the importance of proper wealth planning for Canadians. Most of us want our children, and grandchildren, to have more than we did; this includes more education about wealth. Most people also want to preserve and grow their wealth for future generations. This research highlights the acute importance of a wealth transfer plan and effective education and support in creating legacies that last.
This article is for information purposes only. Please consult with a professional before taking any action based on information in this article. You can get in touch with Elizabeth here or by calling 705-444-4742.