One Quarter (25%) of Canadians are `Concerned' About Their Children's Ability to Manage Their Estate in the Future

Toronto, ON -- A new poll has revealed that one quarter (25%) of Canadians, overall, are `concerned' with their `children's ability to manage their estate in the future'. The poll, conducted by Ipsos Reid on behalf of the Bank of Montreal went on to interview over 500 Canadians who express this type of concern, and who also have an estate value of over $500,000. Among these Canadians, 22% said they were `very concerned' and 78% were `somewhat concerned' with their children's ability to manage their estate later in life.

Among the leading causes for concern include believing that their child spends money wastefully (38% total, 45% among those aged 55+), that their child is under the influence of persons that they do not trust (16%), that their child is unemployed or underemployed (16%), or that their child is still too young (14%). Other concerns include a lack of financial experience on the part of the child (8%), a disability (4%), an addiction to narcotics or alcohol (3%) or the complexity of their estate (2%). Two in ten (16%) are unsure of the source of their concern.

For most, it appears that this concern over how their children will manage their estate will impact the way the estate will be planned. For example, three in ten (31%) will include suggestions in the will, while a similar proportion (28%) will put their estate into a trust managed by a friend or relative for a number of years, or a trust managed by a corporate trustee (9%). Others will simply leave a smaller inheritance (8%), or set up a trust managed by a friend or relative (4%) or a corporate trustee (3%) for life. One quarter (22%), though, don't know how this concern will impact the way they plan their estate.

Thinking about discussions they might have had regarding the issue of how their children will manage their estate, three quarters (76%) have spoken to their spouse about this, while four in ten (38%) have spoken with a professional, including a lawyer (24%), a planner at their main bank (10%) or another bank (10%), or an accountant (10%). Some have spoken about the situation with other family members (31%) or even friends (23%). Just 12% have not discussed their concern with anyone.

Among those who haven't discussed the situation with a professional, leading reasons include not having got around to it yet (13%), that their children are still too young (7%), that they themselves are too young or healthy (5%), that it's not needed (4%), that someone in the family will manage their estate (4%), or that they've already discussed it with their children (3%). Fully one half (51%) have no reason for not discussing the situation with a professional.

Likely a result of their concern, most of these Canadians have already arranged the details of their estate in the case of their death as eight in ten (79%) have a will or other legal document. Two in ten (20%), though, do not have a will or other legal document, the incidence of which rises the smaller one's estate is. The most common beneficiaries of these wills are children (82%) and spouses (80%), followed by another family member (19%), charities (5%), friends (4%), or a church or religious organization (3%).

However, among those who have more than one beneficiary, the spouse or partner stands to inherit the most (71% of the estate), while children (24%) and other family members (2%) will inherit a lesser amount.

These are some of the findings of an Ipsos Reid poll conducted on behalf of the Bank of Montreal from March 27 to April 4, 2009. This online survey of 536 adult Canadians aged 18 and older with an estate value of over $500,000 who express concern over their children will manage their estate was conducted and derived from the via the Ipsos I-Say Online Panel, Ipsos Reid's national online panel. An unweighted probability sample of this size, with a 100% response rate, would have an estimated margin of error of +/- 4.2 percentage points, 19 times out of 20, had the entire adult population of this demographic living in Canada 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.

For more information on this news release, please contact:
Sean Simpson
Research Manager
Ipsos Reid
Public Affairs
(416) 572-4474
[email protected]

About Ipsos Reid
Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

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