Episode 83: Three Ways to Prepare Your Family to Inherit Your Riches

Although there is a significant intergenerational wealth transfer underway in Canada, many families are delaying difficult discussions about what life will be like once a parent passes. When everyone is in good health, having the talk is difficult, but when someone is unwell, it becomes even more difficult. In this example, Jane Doe experienced this firsthand when her father passed away in 2021. Although her parents owned their own businesses and had instilled in her the value of conserving money, no one ever brought up the more serious subjects of wills, powers of attorney, and assets. This became a major issue when her father became ill. Jane's financial advisor facilitated the financial conversations Jane and her parents had been avoiding and brought them together. Jane was really delighted with how her advisor was able to handle the discussion. He was able to provide guidance and explain how other families handled the matter. Today, there is a growing demand for financial consultants. The role of an advisor has changed over the years. Today, they primarily serve as coaches and teachers. Although your parents are critical first trainers in both cases, financial advisors can be compared to driving instructors since a professional can ultimately convey the information more effectively. Finding the ideal advisor for you means understanding their experiences, the kinds of families they work with, and the services they offer. There are a few reasons why some people continue to put off estate planning. One has to do with the name itself; some people may not consider themselves wealthy enough to require a plan because the word "estate" conjures up images of a mansion in the English countryside. "Analysis paralysis" is a situation in which a person is so unsure about what they want to do or is so overwhelmed that they end up not making any decisions at all. In this situation, it can be helpful to start the process and make sure their family is safe. According to Jane Doe's own experience, it is always preferable to act quickly. It might not be the most enjoyable item on everyone's list. However, it is preferable to hold those discussions when everyone is in a healthy emotional state. Where do you start when you're prepared to make a plan? There are three essential steps: 1) As expected, the process begins with an evaluation of your assets and financial situation.

2) This is where the discussions may become more challenging. How would you prepare for the possibility of your own incapacity? When answering questions concerning end-of-life care, you may be asked about who you want to make health choices for you and if you want to have any say in the planning of your funeral.

3) Who are the people, places, and things you are doing this for? What inspires you? This could be providing a grandchild with special needs with a secure future or making a meaningful contribution to a location or cause. Keep in mind that this document isn't set in stone; you may always go back and edit it. Your advisor will be better able to construct an overall plan and give you and your family peace of mind if they are aware of what is most important to you.

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Regan Schiller holds his Certified Financial Planner, Registered Retirement Consultant and Certified Life Underwriter designations. He is an Executive Financial Consultant licensed under Investors Group Securities Inc.

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