bmo wealth management report

Complex Modern Family Dynamics Impact Estate Planning

Only 28% said knew their parents’ distribution plans or details of their Wills

New research from BMO Wealth management. Visit here.

CHICAGO, April 10, 2017 – BMO Wealth Management (U.S.) today released a report that explores the complexities of the American family structure and the resulting impact on estate planning, revealing that many families have a long way to go in effectively communicating their plans for the future with their loved ones.

The report – titled Estate Planning for Complex Family Dynamics – surveyed 1,008 Americans age 18 and older about their views on inheritance, communication about estate planning within their families, and care issues as they grow older. Two-thirds of the respondents had adult or minor children. The results were then cross-referenced with family relationship status to see if complexity of family relationships affects the approach to estate planning.

“As family dynamics become more complex, the potential for conflict to play out after a death increases,” said Jason Miller, National Head of Wealth Planning, BMO Wealth Management (U.S.). “It is critical to implement and communicate an estate planning strategy in a way that will help prevent conflict and promote harmony.”

When asked if their parents had shared their estate distribution plans or details of their Wills and executor selections, only 28 percent of respondents indicated having had these discussions. Additionally, 40 percent of those surveyed felt that the distribution of their parents’ estates was not fair, with unmarried respondents most likely to indicate this.

The report also found that 25 percent of married adults indicate that only their spouse knows the location of their Wills and Powers of Attorney, with 52 percent reporting they do not have a Will in place. That percentage rose to 56 percent among those respondents age 35-54.

BMO offers the following financial planning tips:

  • Review your Will: Marital status changes, the birth of children and grandchildren, the purchase of life insurance, retirement, the receipt of an inheritance, and health changes are all reasons to re-evaluate a Will and estate plan.
  • Trusts: An additional level of privacy may be achieved through the use of living trusts and gifts (keeping the annual and lifetime gift tax limitations in mind), as a probated Will becomes a public document. There are tax considerations for this option, so the extra tax and administration costs need to be balanced with privacy concerns.
  • Taxes: Estate plans should include a focus on taxes to help achieve the fair after-tax distributions desired, and at the same time minimize the tax liability. Passing assets to a surviving spouse is a strategy that is often used as it can help to reduce and also defer estate taxes in the future.

To view a copy of the full report, which includes more financial planning tips and additional survey findings explored in detail, please visit here.




About BMO Wealth Management
BMO Wealth Management serves mass affluent, high net worth and ultra-high net worth individuals and families with a full suite of wealth management solutions including wealth planning, banking, investment management and trust and estate services. With 35 offices across 12 states and international offices in Canada, Hong Kong, and Singapore, BMO Wealth Management provides guidance and planning advice combined with individualized service and local expertise. As of January 31, 2017, BMO Wealth Management had assets under management of US$46 billion and assets under administration of US$47 billion. BMO Wealth Management is supported by the resources and stability of one of North America’s premier financial services organizations—BMO Financial Group. Visit here.
BMO Private Bank is a brand name used in the United States by BMO Harris Bank N.A. Member FDIC. Not all products and services are available in every state and/or location. Estate planning requires legal assistance which BMO Harris Bank N.A. and its affiliates do not provide. Please consult with your legal advisor. BMO Wealth Management is a brand name that refers to BMO Harris Bank N.A. and certain of its affiliates that provide certain investment, investment advisory, trust, banking, securities, insurance and brokerage products and services. Investment Products are: NOT FDIC INSURED – NOT BANK GUARANTEED – NOT A DEPOSIT – MAY LOSE VALUE