Estate Planning for Canadian Baby Boomers
June 27th, 2008 | by Editor |Canadian financial advisors are increasingly helping clients cope with the issues of the Sandwich generation, Canadian Baby Boomers that are dealing with both kids and aging parents. Here’s some advice from these financial advisors.
A large percentage of the population, those Baby Boomers, have reached an age where their children are nearing completion of post-secondary education.
By now, most are also enjoying living in a mortgage-free home. In the financial planning cycle, this is normally a time for the family to concentrate, in earnest, on retirement planning. Advancements in medical science mean that Boomers are enjoying good health even as they head into their 50s and 60s. These advancements also mean the Boomer’s parents are enjoying better health, and are living longer lives. Not many generations ago families worked the farm, retiring or slowing down near age 65, then died within a decade. Not so today. Some clients have been retired for over 30 years!
With this increase in life expectancy, Boomers are faced with caring for their aging parents. Some unlucky ones are even footing the bill for their kids’ post-secondary education and their parents’ long-term care at the same time. For those who aren’t paying for their aging parents’ lifestyle, there are many who spend much of their time assisting with banking, shopping, household maintenance, and generally helping manage their parents’ affairs.
One of the biggest concerns our aging parents have is ensuring that their affairs are in order and that their wishes are carried out at the time of their death. Many seniors have large portfolios that may incur tax when they pass on. This is where estate planning becomes doubly important. It’s important to the parent, to reduce taxation and ensure that as much money as possible goes to the beneficiaries. It’s also important to the beneficiaries and estate executors, who are usually the children, to ensure a simple, uncontested transition of assets to the heirs.
It’s important to discuss many estate planning strategies with both parents and children. It can help guarantee that your hard-earned dollars go to your chosen beneficiaries.
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