Ms. Christine Van Cauwenberghe reports

IG WEALTH MANAGEMENT ESTATE PLANNING STUDY: DESPITE HISTORIC INTERGENERATIONAL WEALTH TRANSFER, MAJORITY OF CANADIANS LACK AN ESTATE PLAN

According to IGM Financial Inc. subsidiary IG Wealth Management's annual estate planning study, more than half (54 per cent) of Canadians currently lack an estate plan, despite the fact that the country is undergoing a historic $1-trillion intergenerational wealth transfer.

An estate plan includes components such as a will, naming beneficiaries, personal life insurance, a health care directive and designating a power of attorney.

"It's concerning that a majority of Canadians are unprepared for their future," said Christine Van Cauwenberghe, head of financial planning at IG Wealth Management. "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 -- and this goes for all Canadians, regardless of their net worth. This is especially critical as we navigate the greatest wealth transfer in Canadian history."

The study, conducted in partnership with Pollara Strategic Insights, also found that:

• Many Canadians are unfamiliar with key aspects relating to estate planning; about half (55 per cent) say they are not knowledgeable about tax considerations, the benefits of having life insurance (47 per cent), the consequences of not having a will (47 per cent) or power of attorney (44 per cent).
• The top reason cited for not having an estate plan is lack of sufficient personal wealth (29 per cent), followed by the feeling of being too young to have an estate plan (14 per cent) and the cost of creating one (13 per cent).

An estate plan must address cognitive decline

A key aspect of estate planning must involve preparing for potential neurological impairment. However, the study found that just 40 per cent have legal documents in place to safeguard their financial future in the event they are diagnosed with cognitive decline. Further, should cognitive decline occur, only 37 per cent have made plans for what will happen to their assets, and just 39 per cent have made plans for who will 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," added Ms. Van Cauwenberghe. "We help our clients build a comprehensive and synergistic estate plan that builds in the possibility of cognitive impairment, so nothing is left to chance. As advisers, it's our responsibility to help our clients achieve financial well-being and are well prepared for anything that may come their way."

About IG Wealth Management

Founded in 1926, IG Wealth Management is a Canadian leader in delivering financial planning with approximately $139-billion in assets under advisement as of April 30, 2025. For more than 95 years, IG has been focused on improving the financial well-being of Canadians so they can confidently embrace all of life's possibilities. Through a network of advisers located across the country, IG provides approximately one million clients with personalized advice, comprehensive financial planning, insurance and mortgage services, and professionally managed investment solutions. IG is a member of IGM Financial, part of the Power Corp. group of companies and one of Canada's leading diversified wealth and asset management organizations, with approximately $270-billion in total assets under management and advisement as of April 30, 2025.