A refreshing change brought on by a stagnant real estate market is that you no longer hear people wealth-bragging about how their houses are soaring in value.
If you miss the chatter, just hang on. Inheritances are set to take over as the lead narrative on instant wealth creation. The amount of money to be passed down by boomers to their millennial and Gen Z children was estimated at $1-trillion by The Chartered Professional Accountants of Canada.
Inheritances are like houses and pensions – amazing if you have one, and discouraging if you don’t. But with vast amounts of money changing hands, inheritances demand attention. Help us dig into this topic by sharing your stories about money, property or other items that you received or expect to get from parents and others. What are you doing with your inheritance, and what kind of difference will it make in your life? Send your thoughts to April Fong, The Globe and Mail’s deputy editor, personal finance, at [email protected].
In a Carrick on Money reader survey, 81 per cent of the participants said they anticipated an inheritance of money from parents. Most participants said they expected a six-figure amount, and almost four in 10 said inheritances sometimes get mentioned in their circle of family and acquaintances.
Boomers have the wealth to pass down as a result of their success in building wealth via hard work and fortunate timing in the housing market. But there are some reasons to question exactly how much money boomers will end up passing along, including the fact that people are living longer but not necessarily healthier.
Like the concept of retirement, inheritances are evolving. Many boomer parents are giving their kids money right now rather than waiting until after they die. Money for home down payments is included here, but boomers are also helping with regular household expenses faced by their adult children – and grandkids as well.
We look forward to hearing your inheritance stories. If you want to vent about living in an inheritance world without rich parents, that’s cool, too.
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