Canada is in the early stages of a massive intergenerational wealth transfer; but many families are putting off uncomfortable conversations about what life looks like after a parent passes away.
“It’s a tough conversation when everyone is clear-headed, but once someone is ill, it’s even tougher,” said Dana Banks, Senior Marketing Manager with ATB Wealth.
Banks speaks from personal experience: She lost her father to cancer in 2021.
Although her parents were business owners, and impressed upon her financial literacy skills like saving, no one initiated conversations about heavier topics: wills, powers of attorney, and assets. When her father got sick, this became the elephant in the room.
Banks credits her parents’ financial advisor for bringing them together and leading the discussions they’d been avoiding.
“I was really impressed with how our advisor was able to manage us,” she said. “He was able to say, here’s how other families have done this, and help us navigate the situation.”
READ MORE: Canadian’s wealth is tied to their parents’ more than ever, StatCan finds
Demand for financial advisors is on the rise, according to Trent Hamans, Vice President of Private Banking & Wealth Planning at ATB Financial.
“The role of an advisor has evolved over the last number of years,” Hamans said. “They’re really coaches and educators today.”
He compares financial advisors to driving instructors—yes, your parents are important first teachers in both respects, but ultimately a professional can deliver the message more effectively.
Get breaking National news
When you set out to find an advisor, get to know if they’re the right fit for you by understanding their experiences, the types of families they deal with, and their services, Hamans said.
“It’s important to remember this is the start of a relationship.”
READ MORE: Living inheritances are booming in Canada, here’s why
Hamans said there are a few reasons why some people still hold out on estate planning. One has to do with the name itself—the term “estate” might conjure up an image of a manor in the English countryside, and some people don’t see themselves as wealthy enough to need a plan.
Another factor that holds people back is called “analysis paralysis”— a term Hamans uses to describe when someone is so unsure of what they want to do, or so overwhelmed, they end up not making a decision at all. He strongly encourages people in this position to get the ball rolling and ensure their family is protected.
“It’s not about you, it’s about those people, places, and things that are left behind,” Hamans said.
Banks agrees that, from her personal experience, sooner is better than later.
“It’s maybe not the most fun task on everybody’s list,” Banks said. “But it’s better to have those conversations when everybody is healthy and in a good emotional place to have them.”
When you’re ready to start making a plan, where do you begin? There are 3 key steps, according to Trent Hamans, Vice President of Private Banking & Wealth Planning at ATB Financial.
- It starts with assessing your financial situation and your assets—no surprise there.
- Here’s where the conversations can get tougher. How do you plan, potentially, for your own incapacity? Answering questions about end-of-life care could mean who you want to delegate your health decisions to, and any input you want to have on funeral arrangements.
- This is the legacy piece. When you look up at the mantle, who are the people, places and things you’re doing this for? What motivates you? This might mean a secure future for a grandchild with special needs, or contributing to a meaningful place or cause.
Remember: you can always go back and update the document; it’s not cast in stone.
Knowing what matters most to you will help your advisor to create an overall plan and give you and your family peace of mind.
ATB Wealth® consists of a range of financial services provided by ATB Financial and certain of its subsidiaries. ATB Investment Management Inc., ATB Securities Inc., and ATB Insurance Advisors Inc. are individually licensed users of ATB Wealth. ATB Securities Inc. is a member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada.
To get the conversation started with a financial advisor, visit atb.com/YourLegacy