Plannnig Perspectives

Many Canadians Not Expecting a Significant Inheritance

More than ever, planning for the future is important

MISSISSAUGA, ON, Nov. 14, 2017 /CNW/ – A new study from investment firm Edward Jones found that many Canadians do not expect to receive an inheritance that will have a significant impact on their future.

The survey, conducted by Leger Research, reveals that almost half of Canadians believe that an inheritance is not part of their long-term financial future (49 per cent).

According to the survey, Canadians 18-54 are the most optimistic when it comes to expecting a financial windfall from a family member. Interestingly, a person’s income doesn’t appear to make a major difference when it comes to inheritance expectations; 50 per cent of those whose income is less than $40,000 say they expect an inheritance, while a similar number (39 per cent) of those earning a salary of over $100,000 say the same.

How should it affect your planning strategy?

“When it comes to your future, an inheritance can have a major impact on your financial strategy,” says Patrick French, principal of solutions tools and consulting with Edward Jones. “Planning ahead so that you can have an appropriate strategy in place is crucial, whether or not you are not expecting an inheritance from your loved ones.”

Even some older Canadians are looking forward to an inheritance, with 36 per cent of those 55-64 and one-in-three over 65 expecting to come into inherited financial assets in the future.

a person's income doesn't appear to make a major difference when it comes to inheritance expectations

Whether counting on receiving an inheritance or planning on leaving one, there are a number of factors to consider, including the tax implications for both parties. There are different strategies for completing the wealth transfer, but it’s important to start the conversation early and work with a team of professionals to ensure a smooth transition.

“It’s not always easy to talk about, but we encourage Canadians to start the conversation about inheritance early so that they can plan accordingly,” added French. “Working with a team of experts can provide important guidance to both those planning to leave an inheritance and those who are expecting to receive one, as well as remove some of the discomfort that can accompany such discussions.”

For those planning to leave an inheritance, six-in-ten say that it “will provide a significant contribution to their loved one’s long term financial future.” Canadians closest to retirement appear optimistic about their ability to bequeath a financial gift. Sixty-one per cent of those 55-64, and 57 per cent of those over 65, say they plan on leaving a “significant contribution” to a loved one.

This news release presents the findings of an online survey of 1565 Canadians between May 23 to 26, 2017. In order to qualify for this survey respondents had to be 18 years of age or older and reside in Canada.



About Edward Jones
Edward Jones is a full-service investment dealer with one of the largest branch networks in Canada. It is a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund, and a participating organization of the Toronto Stock Exchange.