A lack of communication between parents and children may be leaving inheritors in the dark about their financial future, and many benefactors risk not having their wishes carried out as planned.
In a poll* among Canadians with at least $500,000 in investible assets, we found that 58% of those surveyed have not discussed instructions for their estate with their heirs.
A large majority have also not taken the opportunity to introduce their heirs to their Financial Advisor. Those who avoid or miss this important financial planning step risk not transitioning their wealth to the next generation smoothly. They also run the risk of placing their beneficiaries at a disadvantage when they fail to help them understand the value of the money they will inherit or prepare them to manage that inheritance well past the next generation.
Blended families have unique concerns
Our survey found that families who were part of a blended, non-traditional unit, have other concerns that complicate their estate planning efforts. These concerns range anywhere from “not knowing who to appoint as a beneficiary” to “not knowing how to divide their wealth fairly”.
Get your guide to jump-start the conversation
The choice for many is to leave the conversation for later but, too often, inertia prevents these discussions from happening before it’s too late. Not addressing plans, however, can lead to misunderstandings, unpleasant surprises, possible legal complications and, in turn, family conflict in the future. Take the time to have the conversation with your heirs and help protect the sustainability of your legacy.
*Survey method: A total of 400 well qualified respondents across Canada were interviewed using an online methodology during the period October 17-22, 2017. Survey conducted by Environics Research.