Estate planning study finds money is kept in the family

A recent survey from Canada has found that 56% of Canadians have a will, and that 85% of the wealth of estates covered by these wills is going to remain in the family.

Among parents whose children are in their will:

• More than two-thirds say their children's inheritance will be held in trust until the children reach a certain age, with one-third placing that age between 22 and 30.
• More than half of children (53%) will receive their inheritance in one lump sum.

The study, by BMO Harris Private Banking, also shows that almost a third of children know they are included in their parents' will but do not know exactly what they will receive. Meanwhile, 17% are not aware that they are in the will at all.

"Not only is it important to draft a will, but it's also essential to communicate your wishes to your family," said Sara Plant, Vice President and National Director, BMO Harris Private Banking. "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."

Other key findings of the study show that:

• 60% of Canadians without a will intend to draft one in the future,
• more than one-third cite "a general need to plan for the future" as a reason to draft their will, and
• 48% of Canadians have assets held in 'joint ownership' as part of their estate planning strategy.