Majority of Canadians Expect Inheritance
A new survey provides interesting insights into the attitudes of Canadians with respect the estimated $1-trillion dollar transfer of wealth forecasted to occur in the next 20 years.
According to the survey, 53 per cent of Canadians are expecting some form of an inheritance. While the majority of Canadians believe that they will receive an inheritance, expectations decline with age: 80 per cent of Canadians aged 18-29 years (“Generation Y”) expect an inheritance, whereas 62 per cent of Canadians aged 30-44 years (“Generation X”) and only 48 per cent of Canadians aged 45-64 years (the “Boomer Generation”) expect an inheritance.
For those who indicated that they knew the value of their future inheritances, 57 per cent indicated that it was expected to be over $100,000. The survey, which also polled Canadians who had already received an inheritance, indicated that many may receive less than they expected. While nearly half of Canadians who had already received an inheritance preferred not to disclose the value (47 per cent), those who indicated the amount received an average of $57,000. Further, one in five (18 per cent) Canadians who have already inherited said they received $100,000 or more, while one quarter (26 per cent) said they received less than $5,000.
The survey also revealed that nearly half (45 per cent) of Canadians aged 60 or more are concerned they are going to need their accumulated savings to fund their retirement, and do not expect to have money left to provide an inheritance to their surviving family. Only one-quarter (25 per cent) indicated that they were willing to make personal sacrifices to ensure an inheritance for their family.
The survey also revealed that many families are not openly discussing inheritance or estate planning issues. 39 per cent of Canadians whose parents have wills say they have not discussed the terms of the wills with their parents, and 61 per cent of Canadians with a deceased parent who left a will indicated they never had such a discussion. Interestingly, those who have discussed estate planning details with family members indicated that it was not a difficult conversation. 31 per cent said the discussion was very easy, while only 3 per cent said they found it very difficult.
A recent article in the National Post discusses the risks of incorporating an expected inheritance into estate and retirement plans, without considering all possible scenarios. The article suggests that some of the uncertainties involved in the transfer of wealth can be solved through discussion between family members.
Thanks for reading,
Saman Jaffery
