By Karin Mizgala, Co-Founder and CEO Money Coaches Canada
Canada is on the verge of a colossal transfer of wealth from one generation to the next. Baby Boomers are expected to inherit roughly $750 billion by 2026; the largest shift of wealth in Canadian history according to a CIBC Capital Markets report. Maybe you are one of them.
There are currently more than 2.5 million Canadians over the age of 75—the largest cohort of that age group this country has ever seen. And the CIBC report estimates their total net worth at $900 billion plus. The reality is that many of these individuals will pass away over the next 10 years, either leaving that wealth to a spouse or to their children (most in their 50’s and 60’s).
But there is a problem that is going to make successfully managing an inheritance even more difficult.
Even though we are in the midst of the largest inter-generational wealth transfer in Canadian history, the majority of heirs are being kept in the dark. A 2018 poll by IPC Private Wealth of Investment Planning Counsel revealed that 58% of affluent Canadians have not discussed instructions for their estate with their heirs
If you will be one of the beneficiaries of this huge wealth transfer, it’s important that you keep the following thoughts in mind. Continue reading