Insight on Estate Planning intentions and expectations of Canadians

 Insight on estate planning intentions and expectations of Canadians

BMO Harris Private Banking recently announced the results of an estate planning study which examined Canadians' intentions and expectations for their wills.

The survey was conducted by Pollara in September 2012 and based on a sample of
1,004 Canadians 18 years of age and older.

 Here’s a summary of the results:

·         More than half of Canadians (56 per cent) have a will.

·         More than 1/3 of those surveyed indicated "a general need to plan for the future" as the reason to draft a will

·         More than 60% of those without a will, intend to draft one in the future

·         60% of the wealth of those with a will is designated to go to their children

·         25% of the wealth of those with a will is intended to go to other family members

·         3% of the wealth of those with a will is intended to go to friends and charities  

 

Sara Plant, VP and National Director, BMO Harris Private Banking.interpreted the results as meaning that families “ place great importance on leaving a legacy and planning financially for their family's future."

 

The study also indicateed that almost 1/3 of children know they are included in their parents' will but do not know exactly what they will receive, while 17% are not aware that they are in the will at all.

 Based on this result, Ms. Plant suggested:

·         "Not only is it important to draft a will, but it's also essential to communicate your wishes to your family.

·         "While it doesn't have to be about the specific details, Canadians need to do a better job of talking about estate planning issues with our loved ones in general."

 

BMO Harris Private Banking suggests some key items to keep in mind when drafting a will:

 

·         Drafting a will is critical particularly critical before owing assets or starting a family.

·         Choosing an appropriate executor is also critical.  Settling an estate can be complicated and requires knowledge of tax, inheritance and family property laws. There are close to 70 separate duties that must be carried out - more if the estate is complex.  

·         Communication with immediate family is key so that those impacted know the plan.

·         Regular reviews are important especially when a life change happens which typically average every 7 to 10 years.

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