New research suggests Canadians are doing a terrible job preparing for one of the biggest transfers of wealth of all time.
Two key findings from a recent CIBC poll suggests Canadians are woefully unprepared for transferring wealth from one generation to the next and advisors wanting to take advantage of this might want to hone those estate planning skills.
The first finding is that 51 per cent of Canadians expect to transfer wealth but haven’t discussed the matter with the recipients. That’s not a great stat but the second key finding is even worse with 79 per cent having had no discussions with a financial advisor about the financial and tax implications of these transfers of wealth.
"While many estate planning strategies may help you achieve your objectives, all successful plans start with open conversations between spouses, professional advisors and, ultimately, family members to provide clarity and a vision for your legacy," says Lana Robinson, Executive Director, CIBC Wealth Advisory Services. "It is key to work with an advisor who can objectively help you understand what strategies are best for you, and can also provide advice on how and when to communicate the plan to your family."
Opportunity is clearly knocking for advisors.
"Without the right amount of communication, Canadians run the risk of the next generation not being prepared to manage their inheritance", says Sarah Widmeyer, Managing Director and Head of Wealth Advisory Services, CIBC. "To help bridge the gap, families need to become comfortable having conversations about wealth transfer."
These poll results are a call to action for advisors to reach out to clients who may be in need of estate planning services.
"There can be significant complications for loved ones if arrangements for a wealth transfer are not properly managed," says the CIBC’s Robinson. "Open communication with your advisors is critical. Strategies viewed in isolation, without the full picture of your situation, could cause unintended consequences."
The first finding is that 51 per cent of Canadians expect to transfer wealth but haven’t discussed the matter with the recipients. That’s not a great stat but the second key finding is even worse with 79 per cent having had no discussions with a financial advisor about the financial and tax implications of these transfers of wealth.
"While many estate planning strategies may help you achieve your objectives, all successful plans start with open conversations between spouses, professional advisors and, ultimately, family members to provide clarity and a vision for your legacy," says Lana Robinson, Executive Director, CIBC Wealth Advisory Services. "It is key to work with an advisor who can objectively help you understand what strategies are best for you, and can also provide advice on how and when to communicate the plan to your family."
Opportunity is clearly knocking for advisors.
"Without the right amount of communication, Canadians run the risk of the next generation not being prepared to manage their inheritance", says Sarah Widmeyer, Managing Director and Head of Wealth Advisory Services, CIBC. "To help bridge the gap, families need to become comfortable having conversations about wealth transfer."
These poll results are a call to action for advisors to reach out to clients who may be in need of estate planning services.
"There can be significant complications for loved ones if arrangements for a wealth transfer are not properly managed," says the CIBC’s Robinson. "Open communication with your advisors is critical. Strategies viewed in isolation, without the full picture of your situation, could cause unintended consequences."
