More Than Money: How One Family Prepared for the Future Together
- By Tracy Andrade, CFP®, CIM® Wealth Advisor and Certified Financial Planner
- 5 Min Read
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In homes across Canada, a quiet financial revolution is unfolding. Families are navigating one of the largest wealth transfers in the country’s history—over $1 trillion is expected to pass from one generation to the next in the coming decade1. While this presents a significant opportunity, it also raises pressing questions: Are families truly prepared to manage this wealth? And how long will it last?
Alarmingly, research suggests that 70% of wealthy families lose their wealth by the second generation, and 90% by the third.2 The stakes are high, and the need for financial preparedness has never been more urgent.
The Reality Behind the Numbers
For people like John and Marie, who are in their early 60s, this stage of life feels like both a gift and a heavy lift. They’re juggling a lot—caring for aging parents in the middle of a caregiving crisis, while also trying to help their adult kids get on solid financial ground in a world that feels more expensive and uncertain every day. And in the middle of it all, they’re asking themselves: How do we pass down wealth without passing down stress?
John’s parents, now in their 80s, built their wealth through decades of hard work and frugality. Their home, purchased in the 1970s, is now worth over a million dollars. But most of that wealth is tied up in the property—and they’re hesitant to part with it. Like 35% of Canadians over 55, they worry about needing those assets later in life3.
Meanwhile, John and Marie’s children—both in their 30s—are counting on an inheritance to help them buy homes and invest for the future. They’re not alone: 61% of young Canadians say inheritance is important to achieving their financial goals4. But expectations don’t always match reality. 66% of wealth transfers in Canada are under $100,000, and only 5% exceed $500,0005.
John and Marie knew they needed to start planning—but like many families, they weren’t sure where to begin. As an Associate Wealth Advisor and Certified Financial Planner at Marnoa Private Wealth Counsel, I specialize in helping families who are caring for aging parents while also supporting their own children. I see this kind of situation every day.
I understand how deeply interconnected family finances can be—and how the needs of loved ones can directly shape retirement and estate plans. I worked closely with John and Marie to help them navigate both the emotional and financial layers of intergenerational planning, and to move forward with more clarity and confidence.
The Communication Gap
Despite the stakes, many families aren’t talking. John and Marie hadn’t yet discussed their estate plans with their children. They’re not unusual—58% of Canadians haven’t shared their estate instructions with heirs, and 12% don’t plan to at all6.
Why? Because these conversations are hard. They involve money, mortality, and sometimes, mistrust. But avoiding them can lead to confusion, conflict, and costly mistakes.
Five Strategies That Changed Everything
After completing a Financial Plan with our team, John and Marie decided to take action. Here’s what they did—and what other families can learn from their journey:
1. They Started the Conversation Early
They sat down with their children and John’s parents to talk openly about wills, values, and expectations. It wasn’t a one-time talk—it was a series of honest, sometimes emotional, conversations. But it brought clarity and connection, because they framed the conversation around legacy and protection, not entitlement.
2. They Updated Their Legal Documents
Their wills hadn’t been touched in over a decade. With help from an estate lawyer, they updated their executors and powers of attorney, and ensured their RRSP, TFSA, and life insurance beneficiaries matched their wishes.
3. They Gave Strategically While Living
Rather than waiting, they chose to give gradually – offering guidance and staying involved. Like many Canadians, they were concerned about how their children would manage an inheritance. In fact, a third of Canadians share that worry, and 36% believe their children lack the financial literacy to handle a windfall.7
We shared tools and strategies with their children to help them prepare.
John and Marie helped their children contribute to their First Home Savings Accounts, Tax-Free Savings Accounts and topped up their grandchildren’s Registered Education Savings Plans. “Giving while living” provided a sense of personal satisfaction and fulfillment – they could explain the intention behind the gift and allowed tax-efficient income splitting.
They structured financial gifts wisely and explored a family trust to protect assets from potential marital breakdowns or poor financial decisions in the next generation.
4. They Planned for Taxes
Canada doesn’t have an inheritance tax, but death still triggers capital gains and RRSP income inclusion. With guidance from our team, they used life insurance and charitable giving to reduce their estate’s tax burden.
5. They Built a Multi-Generational Plan
This wasn’t just about “who gets what.” It was about ensuring their wealth supported their family’s future— financially, emotionally, and sustainably. They included plans for their own care, financial assistance for their kids, and a legacy that reflected their values.
What If They Hadn’t Planned?
Without a plan, John and Marie’s family could have faced:
- Higher taxes
- Delayed asset transfers
- Legal disputes
- Emotional strain during grief
Instead, they created a roadmap that gave everyone peace of mind. We worked closely with John and Marie’s family to create a plan that balanced everyone’s needs—helping John’s parents explore ways to unlock the value of their home without compromising their security, while also setting realistic expectations and strategies for the next generation. The result? A clearer path forward, with less stress and more confidence that their family’s wealth will support the people they love, not become a source of tension.
Your Legacy Is More Than a Number
Intergenerational wealth transfer isn’t just a financial event—it’s a family story. It’s about protecting what you’ve built, preparing the next generation, and preserving harmony.
At Marnoa Private Wealth Counsel, we help families like yours navigate this journey with clarity and confidence. Whether you’re preparing to inherit or planning your own estate, we’ll guide you every step of the way.
Book your free family wealth planning session today.
Let’s make sure your legacy is built on more than money—it’s built on meaning.
Please reach out to learn more.
Sincerely,
Tracy Andrade, CFP®, CIM®
Associate Wealth Advisor and Financial Planner
(519) 707-0050
tracy@marnoa.ca
marnoa.ca