Inheritance Expectations Falling


    More than half of Canadians are expecting an inheritance (53 per cent) and of those who believe they know the size, 57 per cent expect the value will be over $100,000. However, research from Investors Group suggests the estimated $1 trillion transfer of wealth forecast to occur in the next 20 years may result in fallen expectations for some. Nearly half (45 per cent) of Canadians aged 60 or more are concerned they are going to need their savings to fund their retirement and won’t have money left to give to their survivors. Significantly, only one-quarter (25 per cent) are willing to make personal sacrifices to ensure an inheritance for their family. “As people live longer and have higher expectations for their retirement, younger generations may have to adjust their own expectations about the anticipated transfer of wealth,” says Christine Van Cauwenberghe, director, tax and estate planning. “This has financial planning implications and strategies that must be considered by both recipients and benefactors – ranging from retirement planning and saving to tax planning and insurance planning.”