Estate planning may be more difficult for a blended family.
While the largest wealth transfer in Canadian history is happening, we are also observing a lack of communication between parents and children. According to a recent IPC Private Wealth poll, 58% of Canadians haven’t had this talk with their heirs, 46% intend to, and 12% don’t ever plan to. And the conversation gap may be even wider in blended families (i.e. children from a first marriage that ended in divorce and from a second marriage that is still intact).
Among the issues that can complicate estate planning even further for a blended family, according to our recent poll:
- 30% worry how their legacy will be managed
- 13% don’t know how to divide assets fairly
- 15% don’t know who to appoint as primary beneficiary
- 13% have not spoken openly to their spouse about their plans
It’s surprising that 80% of respondents have not introduced their heirs to their financial advisors, as it constitutes an appropriate first step to solve the estate planning conundrum. You may introduce your children (or step-children) to your advisor whether they are in their 20s or their 60s!
Our eBook on wealth transfer includes the six steps to a successful wealth transfer conversation
Broaching this conversation can be challenge. Give me a call, I can guide and support you and your heirs through the necessary discussions regarding your wealth transfer plans.
Wealth Transfer 101: How to talk to your heirs about their inheritance. Survey method: A total of 400 well-qualified respondents across Canada were interviewed using an online methodology during the period of October 17-22, 2017. Survey conducted by Environics Research.
Disclaimer: This blog post is for informational purposes only and is not and should not be construed as, professional advice to any individual. Individuals should contact their IPC Advisor for professional advice regarding their personal circumstances and/or financial position.