BMO survey: most Canadians will hold children’s inheritance in trust
By National Underwriter
By Warren S. Hersch
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.
BMO Harris Private Banking, Toronto, published this finding in a summary of results from an estate planning study that examines Canadians' intentions and expectations for their wills.
The study reveals that more than half of Canadians (56 percent) have a will and that an average of 85 percent of the wealth of Canadians with a will remain in the family:
● 60 percent of assets are designated to children.
● 25 percent of the assets will go to other family members.
● 3 percent 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 percent) 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 percent are not aware that they are in the will.
● 60 percent 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 percent of Canadians have assets held in 'joint ownership' as part of their estate planning strategy.
Originally published on LifeHealthPro.com