Over half of Canadians lack an estate plan during the $1 trillion wealth transfer, IG Wealth study finds
More than half of Canadians have no estate plan in place, even as the country undergoes a $1tn intergenerational wealth transfer, according to IG Wealth Management’s annual estate planning study conducted with Pollara Strategic Insights.
The study found that 54 percent of Canadians lack an estate plan—defined to include a will, named beneficiaries, life insurance, a healthcare directive and designated power of attorney—despite the historic scope of assets expected to pass between generations.
Christine Van Cauwenberghe, head of Financial Planning at IG Wealth Management, said this absence of preparation poses risks across income levels.
“It’s concerning that a majority of Canadians are unprepared for their future,” said Van Cauwenberghe.
He added that “a properly constructed estate plan can help ensure that you’re prepared for your passing and that your wealth is distributed according to your wishes in a tax-efficient manner.”
This, he noted, applies to all Canadians, regardless of their net worth.
A key concern is cognitive decline, which Van Cauwenberghe emphasized must be accounted for in planning.
As per the IG Wealth report, only 40 percent of respondents have legal documentation to protect their financial affairs if diagnosed with a condition such as dementia.
Only 37 percent have created asset distribution plans in such cases, and just 39 percent have designated someone to manage their finances.
“Conditions like Alzheimer’s disease and other forms of dementia can affect anyone at any time, and many underestimate their associated costs,” Van Cauwenberghe said.
He noted that their estate plans account for the possibility of cognitive impairment.
The report also highlighted a widespread lack of estate literacy.
According to IG Wealth Management, 55 percent of respondents said they do not understand the tax considerations related to estate planning, while 47 percent were unfamiliar with the benefits of life insurance and consequences of not having a will.
Another 44 percent did not know the implications of not designating a power of attorney.
Reasons cited for not having an estate plan included perceived lack of personal wealth (29 percent), the belief they are too young to begin planning (14 percent), and concerns over the cost of creating one (13 percent).
The timing of these findings coincides with growing attention to the implications of the wealth shift on women.
Nicola Wealth advisor Cassandra Cross said to Wealth Professional that women are set to inherit significant wealth by 2030, yet many face confidence and literacy gaps that prevent them from engaging effectively with financial advisors.
Cross said emotional barriers—like imposter syndrome or the belief that they’re not “wealthy enough” to ask questions—are still common. She described her efforts to create a safe space for women to build knowledge and prepare for future financial responsibilities.
Legacy-focused planning is also gaining attention in the advisor space.
John Bromley, CEO of Charitable Impact, told Wealth Professional that strategic philanthropy offers a tax-efficient tool for engaging younger generations in wealth planning.
He described a program called charitable allowance, which channels funds through donor-advised funds to children or grandchildren, who then choose how and when to donate.
“Charitable giving is a super tax-efficient way to introduce this idea of values,” Bromley said, noting that these strategies allow advisors to help clients embed values while fostering financial literacy.
For pre-retirees, inheritance planning is layered with market risk and emotional complexity.
Paul Shelestowsky of Meridian Credit Union warned against assuming inheritances will materialize as expected, as reported by Wealth Professional.
With rising healthcare costs and longer life expectancies, assets once thought to be part of a retirement plan may no longer be available.
“Let’s worry about it when it happens,” said Shelestowsky. “Your parents need a lot of health care—you could be looking at $10,000 a month… all of a sudden you go from thinking, ‘I’m going to get $100,000,’ to ‘I’m not going to get anything.’”
Shelestowsky advised that inheritance windfalls should be treated as a bonus, not the foundation of retirement planning.
He also flagged tax consequences as a concern—inheritance income could push recipients into higher tax brackets or trigger Old Age Security clawbacks.
Gifting while alive can offer tax advantages but may also require careful liquidation of assets to avoid tax penalties.
These overlapping dynamics—estate literacy, cognitive health planning, philanthropic education, and taxation—are emerging as critical areas for those navigating the $1tn intergenerational wealth transfer.
