In terms of wealth transfer to younger generations, the next decade will see what some are calling a "bequest boom."
The Ontario Disability Support Program (ODSP) can be a great help to parents of children with disabilities. However, payments from the program end when your child reaches age 65. Additionally, your child's receiving an inheritance can result in the loss of ODSP benefits.
If you own a family cottage, it is undoubtedly a place of comfort and good memories. However, the cottage can also become a point of contention among family members if the proper planning isn't done.
The question of how to cover estate taxes is a common dilemma in estate planning. With that in mind, one thing you may want to avoid is saddling one of your beneficiaries with the tax bill while essentially allowing another beneficiary to avoid estate taxes altogether. This situation could produce heart-rending conflict among your beneficiaries.
Family dynamics often have a bearing on how smoothly wealth passes from one generation to the next. At Hagel Lawfirm, we have seen how differences among family members can have a negative impact on the value of an estate, and we work with our clients to help them avoid such an outcome.
It is estimated that $30 trillion in assets will be transferred from Baby Boomers to their heirs in the coming decades. For Canadians specifically, the inheritance boom is expected to involve the transfer of $1 trillion in the next 20 years.
You may have heard the saying, "You need money to make money." While that may not be true in every case, if you already have some wealth, it can certainly help when you're trying to do something like complete your education, start a business or otherwise expand your portfolio.
According to Statistics Canada, the average net worth of Canadian families has risen significantly in the last two decades. Between 1999 and 2012, average wealth increased by 73 per cent -- from $319,800 to $554,100. Much of this wealth is held by baby boomers, and it is estimated that, in the next four decades in North America, more than $30 trillion in assets will be passed from boomers to their heirs.
If you have an adult child with an incapacitating disability, then you undoubtedly want to plan your estate so that it provides for your child's needs when you are unable to do so yourself. There are numerous ways to do this, and it is important to choose the strategy that best meets your family's needs.
When planning the eventual distribution of your estate assets, one of your primary goals is to ensure that your wishes are communicated clearly. However, in a world increasingly characterized by our connection to digital technologies, estate planners have to think not only about which heir will receive what, but also about whether heirs have access to digital assets.