More than two-thirds of Canadians say their children's inheritance will be held in trust until the children reach a certain age, with one-third placing that age between 22 and 30, according to new research.
The study reveals that more than half of Canadians (56%) have a will and that an average of 85% of the wealth of Canadians with a will remain in the family:
● 60% of assets are designated to children.
● 25% of the assets will go to other family members.
● 3% will go to friends and charities, respectively.
"These results reflect the strength of the family unit in Canada," says Sara Plant, vice president and national director, BMO Harris Private Banking. "It's clear that Canadians are looking beyond having enough funds for their lifetime. They place great importance on leaving a legacy and planning financially for their family's future."
Among parents whose children are in their will, the study also finds that:
● More than half of children (53%) will receive their inheritance in one lump sum
● Almost a third of children know they are included in their parents' will but don’t know what they’ll receive.
● 17% are not aware that they are in the will.
● 60% of Canadians without a will intend to draft one.
● More than one-third cite "a general need to plan for the future" as a reason to draft their will.
● 48% of Canadians have assets held in 'joint ownership' as part of their estate planning strategy.