News Releases

There may be a Will, But IS There a Way?

Toronto, June 4, 2009 – A new research study by Ipsos Reid commissioned by BMO Harris Private Banking found that the majority of Canadians with a significant estate¹ with concerns over estate management have a will or legal document in place.

The study reveals that among these high net worth individuals with concerns:

80 percent have a will or legal document in place
8 in 10 are expected to leave an estate to their children
1 in 4 (22%) say they are very concerned about their children's ability to manage their estate

"It's interesting that a quarter of all high net worth Canadians have some concerns about their children's ability to manage their inheritance. But on a positive note, the survey tells us that 8 out of 10 of those Canadians do have a Will and have therefore undertaken some form of estate planning,” said Jean Blacklock, Vice President & Managing Director, Wealth Services and Chief Operating Officer, BMO Trust Company. “We are finding there is an increased demand from our clients at the Private Bank to help teach children the essentials about money management.”

Wasteful spending a cause for concern

The research reveals two main causes for parental concern:

Almost 40 percent cite wasteful spending; and
16 percent believe that their child is under the influence of a person that they do not trust

“We were interested to see that 31 percent of the survey respondents have included suggestions in their will as to how they want their children to manage their inheritance, and 43 percent plan to use a trust in their Will as a result of their concerns. The research suggests that people may have a number of ideas about how to address these concerns. However, some ideas are better than others and the purpose of seeking professional advice is to ensure that the estate plan is sound,” said Blacklock.

Not Just All in the Family

Over three quarters (76 percent) with an estate valued over $500,000 who are concerned about estate management have discussed their concerns with a spouse
Among the same respondents, only 38 percent have discussed with a professional
1 in 5 respondents do not know how their concern regarding their children's lack of fiscal responsibility will impact estate planning
Consulting a professional was not top of mind for over half of high net worth respondents concerned with children's estate management

“It's clear that using the advice of an expert on estate planning can really provide peace of mind on these concerns,” said Blacklock. “The study results emphasize to us the importance of having deep and trusting relationships with our clients so that even private family concerns can be addressed,” added Blacklock.

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¹ Estates with $500,000 or more in probatable assets

About BMO Harris Private Banking

BMO Harris Private Banking, part of BMO Financial Group, provides an integrated wealth management approach to affluent individuals and families. The private banking team of professionals is comprised of leading specialists in a variety of disciplines including banking, investment management, estate, trust and various family office services such as philanthropy and business succession planning. With branches throughout the U.S., our sister company, Harris Private Bank, can offer personalized financial services to our Canadian clients who visit, travel or conduct business south of the border.

These are some of the findings of an Ipsos poll conducted March 27 to April 4, 2009. For this survey, a national sample of 536 Canadians with an estate value of $500,000 who express concern over how their children will manage their estate from Ipsos' Canadian online panel were interviewed online. A survey with an unweighted probability sample of this size and a 100% response rate would have an estimated margin of error of /- 4.2 percentage points 19 times out of 20 of what the results would have been had the entire adult population of Canadians with an estate value of $500,000 who express concern over their children will manage their estate been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

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