More than half of young Canadians include charitable donations in their wills: RBC Royal Trust poll
Yet more than 50% of Canadians and 70% of 18-34 year olds still do not have a will despite the significant benefits it can provide
TORONTO, July 19, 2022 /CNW/ – Young Canadians are more philanthropic when it comes to estate planning and are more likely to provide instructions on how their digital assets should be managed after death, according to a recent poll conducted by Ipsos for RBC Royal Trust, l ‘one of from Canada leading companies providing valuable estate, trust and incapacity services to individuals, families and businesses. Among those with a will, more than half (53%) of Canadians aged 18 to 34 and a quarter of Canadians aged 35 to 54 asked to include charitable donations, compared to only 13% of those aged 55 and over .
The poll also finds that for digitally connected generations with multiple social accounts and online profiles, younger Canadians (18-34, 48%; and 35-54, 40%) are more likely to tell their executor how to manage their digital assets after death, compared to one in three who are over 55. This can help avoid awkward or even fraudulent situations after someone dies. Not surprisingly, these young Canadians are also much more likely (18 to 34, 19%; and 35 to 54, 23%) to prefer to facilitate their will online.
Additionally, the results show that regardless of recent world events, such as the global pandemic, Canadians did not rush to create a will. Although more than half (58%) of Canadians say they have a good basic level of estate planning, 52% still do not have a will and this number jumps to 70% among those aged 18 to 34 and 66% for 35-54.
“The loss of a loved one is a stressful and emotional time for families, but having an up-to-date estate plan that conveys your wishes can ease that burden and the stress that family members experience when settling the estate. of a loved one,” said Leanne Kaufman, President and CEO of RBC Royal Trust. “However, this survey shows that more than half of Canadians don’t have a will and a quarter don’t know where to start to create their will. This must change. With the right partner, creating a will and estate plan isn’t as difficult as Canadians might think, and it will bring them and their families a lot of comfort. »
Power of Attorney for Property – An Essential Part of Estate Planning
An important part of an estate plan is the appointment of a power of attorney (POA) – a trusted person with the power to manage the financial affairs of a loved one if they are unable to do so. There are different types of powers of attorney and two-thirds of Canadians (66%) understand the difference between a power of attorney for care and a power of attorney for property. Top reasons for having a power of attorney for property include that their property/assets are handled appropriately (61%) and that clarity of their wishes reduces stress on families (52%).
Despite this, only 35% of Canadians have appointed a power of attorney for themselves, a quarter of Canadians believe there are no consequences to not having a power of attorney, and 23% of Canadians without a power of attorney simply don’t know where to start.
“Acting as a power of attorney for property comes with serious obligations. It’s a powerful document, so it’s important to choose someone who will act in your best interest when you are no longer able to do so,” said said Kaufman. “These survey results show that Canadians should seek advice from their estate planner to demystify and educate themselves about wills and powers of attorney. This can help ensure they understand the long-term benefits of having a plan. succession without stress, grief and frustration for them, their families and loved ones.”
Busting the Myths of Wills and Estate Planning
Overall, Canadians say it is important to have a will so that their family knows their wishes (68%) and does not fight over their property (54%), their children/dependents are taken care of support (52%) and to shorten the overall estate settlement process (49%).
Here are some common misconceptions about wills and estate planning:
- Myth: I’m too young to make a will or think about estate planning.
Reality: There is no “appropriate” age for making a will or giving a power of attorney. People can die unexpectedly at any age, so it’s important to have an estate plan, which includes a will, to ensure that your end-of-life wishes (burial, cremation, who should take care of pets, who will receive your most valuable personal effects, etc.) are known and executed. Additionally, wills can be updated as your circumstances change throughout your life.
- Myth: I don’t have enough assets.
Reality: One in five (19%) of 18-34 year olds and a quarter of 35-54 year olds say they don’t have enough assets to leave behind. However, there is no “asset threshold”; many people have something at this point (savings, car, furniture, etc.) not to mention digital assets – from online accounts to intellectual property to photos on your phone – that require instructions on how they must be handled.
- Myth: Preparing a will is difficult or expensive.
Reality: A quarter (25%) of Canadians without a will say it’s because they don’t know where to start. Yet wills can increasingly be prepared through inexpensive digital options or with the help of a qualified legal adviser – in fact, 21% of 18-34 year olds say they have been encouraged by a legal adviser to do so. TO DO. Executors – estate and trust professionals skilled in the intricacies of estate administration – exist to help manage an estate.
- Myth: It is easy to act as an executor.
Reality: Estates are becoming increasingly complicated and acting as an executor of a loved one can often be stressful, time consuming and often disrupt family relationships. An overwhelming number of Canadians are unaware that an executor can be appointed to administer an estate, including 59% of those aged 35 to 54 and 54% of those aged 55 and older.
Resources for Canadians
- Not sure where to start to get your affairs in order? RBC Royal Trust offers many resources for Canadians: A guide to estate planning to help Canadians begin to put their house in order.
- RBC Royal Trust has partnered with a best-selling personal finance author David Chilton to educate Canadians on the benefits of maintaining a executor and trustee.
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About RBC Wealth Management
RBC Wealth Management directly serves affluent, high net worth and ultra high net worth clients worldwide with a full range of banking, investment, trust and other wealth management solutions, from our main operating centers in Canada, United Statesthe British Isles and Asia. The company also provides asset management products and services directly and through RBC and third-party distributors to institutional and individual clients through its RBC Global Asset Management business (which includes BlueBay Asset Management). RBC Wealth Management has 1.3 trillion Canadian dollars of assets under administration, nearly 950 billion Canadian dollars of assets under management and over 4,800 financial advisers, advisors, private bankers and trustees. For more information, please visit www.rbcwealthmanagement.com.
About the RBC Royal Trust Survey
Here are some of the results of an Ipsos survey conducted April 22 – April 25, 2022 on behalf of RBC Royal Trust. For this survey, a sample of 2001 Canadians aged 18 and over was interviewed online. Quotas and weighting were used to ensure that the composition of the sample reflects that of the Canadian population according to census parameters. The accuracy of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±2.5 percentage points, 19 times out of 20, of what the results would have been had all working Canadian adults been polled.
SOURCE RBC Wealth Management
For further information: Briana D’Archi, RBC Wealth Management Communications, [email protected]416-704-1346