Talking to your parents about inheritances can feel pretty awkward, but ignoring it can become expensive for you later on. Canadian Boomers are planning to pass about $1 trillion in assets to their Millennial and Gen Z children by 2026. However, many families still shy away from discussing what that arrangement looks like in practice, and even put off making a will altogether. Among Boomers who say they plan to leave an inheritance, only 47% have an estate plan in place, and 26% haven’t even talked about their assets with their heirs. If neither of your parents have a will when they pass, their estate is typically divided up equally to the children, but it varies according to provincial laws. These automatic distributions might not reflect what your parents actually wanted. Then, someone — usually one of the heirs — will have to go to court to become the personal representative of the estate. This process can be super lengthy and costly, eating into any inheritance left behind. The costs leading up to a one-day trial, including hiring lawyers, can hit as much as $500,000. Experts suggest having these tough chats as early as possible, and you can lead by example: If you set up your own will (which you should do anyways), it might just inspire your parents to do the same.
