A trillion-dollar tsunami': Canadians grapple with unprecedented wealth transfer

[troutman]

Aging baby boomers are passing down a record amount of money to their children

https://www.cbc.ca/news/canada/saska...lion-1.7462837

The Chartered Professional Accountants of Canada said in 2023 that $1 trillion of wealth was expected to move between Canadian baby boomers and their millennial and Generation X children from 2023 to 2026.

According to CIBC, 31 per cent of first-time homebuyers in Canada in 2024 received financial help from family members to buy a home.

These transfers are expanding wealth divides that go back decades.

[chemgear]

We're (going to be or are already) rich! Ya!

[RichieRich]

I already am... RICHIERICH!!!


What is the saying... wealth is most often squandered within 3 generations?

1) someone makes the wealth
2) someone enjoys/maintains the wealth
3) someone spends the wealth
4th gen... where did the wealth go? we are POOR
5th gen... we are poor so we will make more wealth!!... repeat

[Monahammer]

Originally Posted by RichieRich

I already am... RICHIERICH!!!


What is the saying... wealth is most often squandered within 3 generations?

1) someone makes the wealth
2) someone enjoys/maintains the wealth
3) someone spends the wealth
4th gen... where did the wealth go? we are POOR
5th gen... we are poor so we will make more wealth!!... repeat

Rags to riches to rags. The 1st generation works hard to not be poor but dotes on their children. Spoiled child grows up without work ethic and squander the wealth over their life, their kids work hard to.take care of them. Repeat.

[Finger Cookin]

I'm waiting for the trickle down. Tsunami my ass

[Ferarri]

Scotiabank…you’re richer than you think!

[PaperBagger'14]

If anyone here has one of them trillionaire parents and they’re looking to adopt a late 30s son I’ll be at the orphanage.

[WideReceiver]

We’ve been generous with our kids and will be spending the rest.

[CliffFletcher]

The life expectancy of women in Canada who reach 65 is 87. Unless those inheritances are in the form of living wills, people typically won’t get them until they’re well into their 50s. So the wealth transfer will largely fund retirements. Lifespans are getting so long that it’s becoming increasingly common for two generations of retirees to live in the same household.

People who write these articles seem to have forgotten about the Silent Generation (born 1925 to 1945). Still lots of them around.

[CliffFletcher]

Originally Posted by WideReceiver

We’ve been generous with our kids and will be spending the rest.

Unless you plan to sell your house and live in a retirement community, your kids will inherit a home - median value in Canada today of $670k. That will be the bulk of the ‘tsunami.’

[Manhattanboy]

Originally Posted by Ferarri

Scotiabank…you’re richer than you think!

Not anymore!

[troutman]

Originally Posted by CliffFletcher

The life expectancy of women in Canada who reach 65 is 87. Unless those inheritances are in the form of living wills, people typically won’t get them until they’re well into their 50s. So the wealth transfer will largely fund retirements. Lifespans are getting so long that it’s becoming increasingly common for two generations of retirees to live in the same household.

People who write these articles seem to have forgotten about the Silent Generation (born 1925 to 1945). Still lots of them around.

What do you mean by living will? Personal Directives (formerly living wills) deal only with personal and medical agency.

The oldest boomers are entering their 80s.

Here is the CPA article:

https://www.cpacanada.ca/news/pivot-...le-down-wealth

it’s true that the majority of wealth in Canada is held by a relatively small number of families, and a massive wave of wealth transfer could exacerbate that problem by fortifying existing imbalances. At the end of 2022, the wealthiest families in Canada (the top 20 per cent) accounted for two-thirds of the country’s net worth—the bottom 40 per cent accounted for just 2.6 per cent.

It was not unusual for us to probate estates in Calgary worth $1-2 Million, typically to 2-3 children. The average farm in SK is valued at $3 million.

[CliffFletcher]

Originally Posted by troutman

What do you mean by living will? Personal Directives (formerly living wills) deal only with personal and medical agency.

Sorry, I meant living inheritances - giving children their money while the parents are still alive.

Originally Posted by troutman

The oldest boomers are entering their 80s.

Not contesting that. I’m pointing out that the Silent Generation exists (everyone over 80). And given average life expectancies, they’re the ones rapidly dying off atm.

Originally Posted by troutman

Here is the CPA article:

https://www.cpacanada.ca/news/pivot-...le-down-wealth



It was not unusual for us to probate estates in Calgary worth $1-2 Million, typically to 2-3 children. The average farm in SK is valued at $3 million.

I’ve been reading articles about the great wealth transfer for years. I’ve posted links to them here before. So I’m well aware of it.

The point is people typically don’t get their inheritances until both parents have passed. And that typically won’t happen until they’re well into their 50s and close to retirement themselves. But these articles on the great wealth transfer rarely acknowledge that.

If you look at the sum the average Canadian inheritance, it’s pretty close to the value of the average home divided by 2.5. So in raw dollars, the bulk of inheritance is in the form of a primary residence being liquidated. Even most people who don’t plan on leaving an inheritance will leave a big inheritance.

[Shazam]

Damn boomers won't die.

[Locke]

Originally Posted by Shazam

Damn boomers won't die.

Look...the UCP are doing their best by gutting AHS but its just not working fast enough!

[lazypucker]

Nice to hear the boomers have something to give to their children when they are gone, in our generation, the inheritance we pass on to our kids is probably a pile of debts....

[CroFlames]

Eh when the rest of you receive your millions, have a care. I ain't getting jack #### from my parents.

[fotze2]

Just make sure you are the crappier sibling so as to not have executor duties bestowed.

[Locke]

Originally Posted by CroFlames

Eh when the rest of you receive your millions, have a care. I ain't getting jack #### from my parents.

Ditto. Hell...they're praying that I die first so they can get something from me!

[fotze2]

Originally Posted by Locke

Ditto. Hell...they're praying that I die first so they can get something from me!

I assumed with your full name your pops was the president of a small Eastern European country. You probably have the coolest name ever next to sample00. Seeing your degree on the wall I was like “there’s no way that’s your real name”