In Canada, we're standing at the edge of the largest intergenerational wealth transfer in history. Over the next decade, an estimated $1 trillion is expected to change hands from baby boomers to their children and grandchildren. But here’s the thing: most families aren’t ready.

Wealth transfer isn’t just about passing along assets—it’s about passing along values, responsibility, and the confidence to manage it all. If the goal is to preserve wealth across generations, families need to be more intentional about how they plan, communicate, and educate.

Why Wealth Transfers Often Fail

It’s estimated that 70% of wealth transfers fail by the second generation, and 90% by the third. The reasons? It’s rarely due to taxes or investment mismanagement. According to research by The Williams Group, the most common reasons are lack of communication and failure to prepare heirs.

Many parents put off talking to their children about money because they think their kids aren’t ready—or worse, that talking about inheritance will make them entitled. But keeping wealth a secret can actually led to more harm than good.

How to Start the Conversation with Your Kids

Talking about money with your children doesn’t have to be awkward or overwhelming. The key is to shift the conversation from “how much” to “what for.”

Here’s how you can ease into the conversation:

• Start early and age appropriately. Young children don’t need to know the size of your estate, but they can begin learning about saving, giving, and smart spending habits.
• Share your values, not just your balance sheet. Help your kids understand the why behind your wealth—whether it’s financial independence, philanthropy, or building a family legacy.
• Be transparent, not transactional. Outline your intentions for your estate, explain any decisions you’ve made around gifting or inheritance, and involve them in discussions where appropriate.

The sooner you begin these conversations, the more time your family has to get comfortable with the responsibilities that come with managing wealth.

Common Estate Planning Mistakes (and How to Avoid Them)

Estate planning isn’t just for the ultra-wealthy. But whether your estate is modest or multi-generational, here are a few mistakes to avoid:

1. No Will or Outdated Will
   Over half of Canadian adults don’t have a Will. And many of those who do haven’t updated it in years. A Will ensures your wishes are respected and helps avoid costly disputes.
2. Ignoring Tax Efficiency
   Without proper planning, a large portion of your estate can be lost to taxes. Tools like trusts, life insurance, and charitable giving strategies can help reduce the tax burden and preserve your legacy.
3. Not Naming (or Informing) an Executor
   Being an executor is a big responsibility. Make sure the person you appoint understands your wishes and is willing and capable of taking on the role.
4. Failing to Document Digital Assets
   In today’s digital age, your estate includes more than just real estate and investments. Make sure someone can access your online banking, investment platforms, and even your photos and social media accounts.

Preparing the Next Generation

Passing on wealth is one thing—passing on the ability to manage it is another.

Here are a few ways to help prepare your children or heirs:

• Encourage financial literacy early. Consider working with a financial advisor or accountant to provide financial education tailored to their needs and age.
• Hold a family meeting. This can be an opportunity to go over your estate plan, address concerns, and build a shared understanding of responsibilities.
• Introduce your advisory team. Let your children or heirs meet your financial planner, accountant, and lawyer. It helps create continuity and trust across generations.

Final Thoughts

Wealth transfer isn’t a one-time event—it’s a process. And with the massive shift happening now, families who are proactive will be in a far better position to preserve their legacy and avoid unnecessary stress or conflict.

If you’re unsure where to start, consider sitting down with an advisor who can help you craft a family wealth strategy that goes beyond numbers and puts your legacy in motion.