The vast majority of Canadians planning to leave an inheritance have not
discussed the topic with their family or a financial advisor
TORONTO, July 9, 2015 /CNW/ - A recent CIBC (TSX: CM) (NYSE: CM) poll finds that over half of Canadians (51 per cent) expect to leave assets upon their death, but when it comes to having
conversations about transferring their wealth, many say they have not
discussed it with their family or a financial advisor.
Key findings of the poll include:
51 per cent of Canadians expect to transfer wealth, but almost half (47 per cent) have not discussed the inheritance with the recipients
79 per cent have not discussed the financial and tax implications of an inheritance
with a financial advisor
Lack of communication about wealth transfer creating gap between
"Without the right amount of communication, Canadians run the risk of
the next generation not being prepared to manage their inheritance",
says Sarah Widmeyer, Managing Director and Head of Wealth Advisory
Services, CIBC. "To help bridge the gap, families need to become
comfortable having conversations about wealth transfer."
"There is a clear disconnect between generations when it comes to wealth
transfer, and this can have a lasting impact on family legacies," she
says. "Without open, honest communication, families risk significant
conflict, especially when parents' wishes don't align with their
Key areas where there may be conflict within families who don't
communicate about wealth transfer:
Transfer of the family cottage: Parents may expect the cottage to be
used for many generations, but their children may feel differently.
This could result in lost planning opportunities for the property while
the parents are alive.
Inheritance: Parents who want to protect their wealth for their children
or grandchildren through the use of trusts may be concerned that their
children could perceive it as not trusting their judgement.
Charitable gifting: Parents may look to reduce taxes at death through
charitable gifting, but their children may not agree with or understand
Probate: Parents may want to make children joint on investment or bank
accounts to avoid probate, but may not realize it could potentially
cause conflict among the children and limits estate planning strategies
that could be leveraged.
Successful transfer of wealth threatened by insufficient planning
While discussions between generations are lacking, so is communication
with financial and other professional advisors, including lawyers and
"While many estate planning strategies may help you achieve your
objectives, all successful plans start with open conversations between
spouses, professional advisors and, ultimately, family members to
provide clarity and a vision for your legacy," says Lana Robinson,
Executive Director, CIBC Wealth Advisory Services. "It is key to work
with an advisor who can objectively help you understand what strategies
are best for you, and can also provide advice on how and when to
communicate the plan to your family."
For those leaving an inheritance, Ms. Robinson stresses the importance
of diligent estate planning with a team of professional advisors.
"There can be significant complications for loved ones if arrangements
for a wealth transfer are not properly managed," she says. "Open
communication with your advisors is critical. Strategies viewed in
isolation, without the full picture of your situation, could cause
The following steps can help you start to develop a wealth transfer
Discuss with your spouse or partner how you want your wealth to benefit
the people you care about. What are your values? What are your goals?
Are there areas where you disagree?
Think about who in your life may require special financial
considerations, such as someone with a disability.
Complete an inventory of your estate, itemizing assets such as your
house, cottage, car, investments, and insurance.
Initiate conversations about your intentions with your professional
advisors to develop a plan.
Communicate your plans to your family and engage their feedback. Ensure
your family has been introduced to your advisory team before difficult
Key Poll Findings:
Percentage of Canadians expecting to leave assets to someone upon their
Percentage of Canadians who have discussed the financial and tax
implications of an inheritance with a financial advisor:
From May 19 to May 20, 2015, an online survey was conducted among 1,504
randomly selected Canadian adults who are Angus Reid Forum panelists.
The margin of error - which measures sampling variability - is +/- 2.53
per cent, 19 times out of 20. The results have been statistically
weighted according to education, age, gender and region (and in Quebec
language) Census data to ensure a sample representative of the entire
adult population of Canada. Discrepancies in or between totals are due
CIBC is a leading Canadian-based global financial institution with 11
million personal banking and business clients. Through our three major
business units - Retail and Business Banking, Wealth Management and
Wholesale Banking - CIBC offers a full range of products and services
through its comprehensive electronic banking network, branches and
offices across Canada with offices in the United States and around the
world. You can find other news releases and information about CIBC on
our corporate website at www.cibc.com/ca/media-centre/.
SOURCE Canadian Imperial Bank of Commerce
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Media contact: Kevin Dove, Head of External Communications, at 416-980-8835 or e-mail: email@example.com