BMO InvestorLine Study: Average Inheritance in Canada Just Under $100K

As Canada goes through the biggest inter-generational transfer of wealth in history - approximately $1 trillion dollars over the next two decades - BMO InvestorLine recently released a study that revealed that the average inheritance in Canada is just under $100,000.

Further, more than half (55 per cent) of Canadians have received an inheritance and two-thirds (63 per cent) believe they will receive one at some point in the future, BMO noted in its release.

The study also examined what Canadians would do with any money received through an inheritance:

-Invest for key life events (91 per cent)

-Use it to reduce debt (79 per cent)

-Travel (78 per cent)

-Spend on things they need (78 per cent)

-Help other family members or friends with their key life events (75 per cent)

-Donate to charitable causes (63 per cent)

"Canadians' financial priorities and situations differ depending on their unique needs and goals," said Julie Barker-Merz, President, BMO InvestorLine. "While it can be exciting to receive an inheritance, it's critical that you look to the future and make sure you're investing at least a portion of it. Inheritances can act as a leg up for those who may not otherwise have the cash flow to put into investments."

Barker-Merz noted that receiving an inheritance is a great time to re-evaluate investment objectives, whether saving for your child's university tuition, working towards buying a house or building your retirement nest-egg. BMO InvestorLine's Self-Directed service provides Canadians access to a wide array of investment options - such as Registered Retirement Education Plans (RESP), Registered Retirement Savings Plans (RRSP) and Tax Free Savings Accounts (TFSA) - that allow Canadians to invest their cash efficiently and potentially grow their savings to get them closer to achieving their investment goals.

The study also revealed that 75 per cent of Canadians feel it is important to provide an inheritance for loved ones.

"Canadians who plan to leave an inheritance for their children need to ensure that they are taking the right steps to ensure a smooth transition of assets," said Gord Graves, Vice-President and Managing Director, BMO Harris Private Banking. "It's never too early to start thinking about how you want to leave your legacy. Keeping the lines of communication open with your family is the key to successful estate planning and wealth transfer."

More Information and Complete Details:

https://www.bmoinvestorline.com/

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