TORONTO, ONTARIO — (Marketwire) — 09/21/11 — BMO Financial Group today announced the results of a study revealing that most Canadian Boomers (aged 45+ with investable assets, including real estate, of over $500,000) have their act together when it comes to estate planning, with the overwhelming majority (85 per cent) having a will in place.
However, despite the existence of basic estate plans, the study also found that almost half of Canadians over 45 have not re-visited or updated their wills in 10 years, potentially leaving their original legacy goals in a precarious state.
“While it-s very encouraging to see that a solid number of Canadian Boomers have a will in place, they should not underestimate the importance of updating their will on a regular basis,” said Sara Plant, Chief Executive Officer, BMO Trust Company. “Over time, an individual-s circumstances can shift, and they may encounter changes to wealth, marital status or the birth or death of a loved one. These changes can impact the estate and can result in an outcome that differs significantly from the deceased-s original wishes.”
The study, conducted by Leger Marketing, also examined what was driving Canadians to prepare a will. The top reasons included:
Those who have updated their wills were motivated to do so by the following:
Another critical component of estate planning is the preparation of a power of attorney, and 69 per cent of respondents who have a will also have a power of attorney. The overwhelming majority of these respondents indicated that they have a power of attorney for their finances (90 per cent), while 87 per cent have one in place to deal with potential issues arising from failing health.
Other Key Findings:
“There is a common misconception that wills are only necessary for parents or those with a high-net worth. However, that-s simply not the case,” added Ms. Plant. “Regardless of one-s marital or parental status, or level of wealth, having a will is an essential part of estate planning that allows an individual to design how their assets should be distributed.”
If you do not have a will prepared yet, here are the top reasons why you should have one in place:
The online survey was conducted by Leger Marketing among 1002 Canadians, 45 years of age or older, who hold investible assets (including real estate) worth $500,000 or more, between July 6 to July 15, 2011.
Contacts:
Amanda Robinson, Toronto
416-867-3996
Sarah Bensadoun, Montreal
514-877-8224
Laurie Grant, Vancouver
604-665-7596