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Canadians to inherit $750 billion from baby boomer generation

As the baby-boomer generation approaches old age and eventually passes away, an enormous transfer of wealth is set to occur. One of Canada's biggest banks, CIBC, predicts that the amount of money to be inherited by the next generation will be approximately $750 billion. The CIBC says that approximately 2.5 million Canadians 75 and up hold a net worth of about $900 billion. It believes that the beneficiaries who will receive inheritances from this wealth are between the ages of 50 and 75.

The CBIC claims that they cannot estimate exactly how much money is to be transferred but, based on previous inheritances, they have arrived at the estimated figure of $750 billion to be transferred. The average size of inheritance passed on to 50- to 75-year-olds during the last 10 years is $180,000; however, the average size inheritance should be even larger than this based on the increasing rise in value of assets.

The massive wealth transfer is expected to have an impact on the economy with regard to savings, wealth distribution, participation in the labour market, real estate markets and business start-ups.

British Columbia residents who hope to leave a legacy to their children will want to review and/or complete their estate plans to ensure that their wishes will be carried out to the letter after they are gone. A lot can go wrong in the estate planning process, which could result in costs, litigation and frustration for family members and heirs later on down the road. For this reason, British Columbia families preparing to transfer their wealth to the next generation may wish to discuss their plans with a reputable estate planning lawyer.

Source: BNN, "Canada's Boomer generation to inherit $750-billion over next decade," July 07, 2016

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