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.
As estate litigation lawyers, we at Hagel Lawfirm have seen first-hand how inadequate estate planning can lead to heartache and otherwise avoidable costs for families, and we encourage Boomers and their children to plan for the future now.
According to one report, 53 per cent of Canadians anticipate receiving an inheritance, and of the respondents who had an idea of the value of the estate, 57 per cent said they would likely inherit more than $100,000.
If you expect the younger generations to inherit your assets, do you trust your loved ones to spend the money wisely? Have you taken such measures as drafting a will or creating a trust? Have you explored all of your options for retirement planning? In short, have you created a comprehensive estate plan?
Keep in mind, too, that if major life events -- divorce, for example -- have happened since you created a plan, it is important to make appropriate updates. Otherwise, your assets may be distributed in a way that is contrary to your wishes or in a way that results in conflict among family members.
For more on these issues, please see our previous post, "Develop a customized estate plan to meet your family's specific needs."