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Inheritance and legacy planning are important for all Canadians, not just the wealthy
MISSISSAUGA, September 30, 2019 – Today, Edward Jones released a new poll that revealed Canadians are banking on an inheritance to help them, as an overwhelming majority struggle to meet their financial goals. The data shows that 83 per cent of Canadians have not achieved their financial objectives, citing the following factors as roadblocks to their fulfilment:
In addition, Edward Jones found 44 per cent* of Canadians are expecting an inheritance in the future. Among those leaving an inheritance (“leavers”), 58 per cent* agree that it will provide a significant contribution to their loved one’s financial future, and 63 per cent of Canadians have included their loved ones in their inheritance planning, intending to leave a lump sum before their death in order to avoid excessive taxes.
"An inheritance can come in many different shapes and forms but does not need to be relied upon as the only method to achieve your financial goals,” said David Gunn, Country Leader at Edward Jones Canada. “The best path towards achieving financial goals is to have an ongoing relationship with a financial advisor, someone who can help you identify and establish objectives within reach and develop the roadmap required to get to the destination."
Who are the “leavers”?
63 per cent of Canadians (regardless of their income level, education or age) intend to leave an inheritance to their loved ones. Looking at the demographic breakdown, Canadians who are married, have assets (i.e. property owners), and/or average an income of $80,000 (CAD) per year, are most likely to leave an inheritance.
Among the “leavers” overall, 69 per cent use a financial professional to help establish their legacy strategy. Those who have included their loved ones in their inheritance planning cite using a financial professional (77 per cent) to help facilitate and navigate the process and conversation.
"It’s important that every Canadian understands that inheritance and legacy planning is not just for the wealthy. There are many other factors to consider and account for beyond monetary funds that can go into a legacy strategy,” said Gunn. “The primary purpose of an inheritance and legacy strategy is to ensure your assets are protected and handled according to your wishes – whatever they may be."
Gunn added, "Overall, it’s encouraging to see more Canadians openly talking about inheritance, because when it comes to your finances, communication is key. Including your loved ones in your discussion with your financial advisor is the first step to developing a thoughtful approach to an inheritance plan that factors in the needs of the giver and receiver."
The Edward Jones Survey presents the findings of an online survey conducted by Leger of 1522 Canadians between December 14th and 17th, 2018. In order to qualify for this survey, respondents had to be 18 years of age or older and reside in Canada.
*This Edward Jones Survey 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.
Edward Jones, its employees and financial advisors are not estate planners and cannot provide tax or legal advice.
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.