{"id":6962,"date":"2022-10-07T08:40:37","date_gmt":"2022-10-07T13:40:37","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-ca\/newsletters\/rbc-survey-shows-three-myths-about-estate-planning\/"},"modified":"2023-11-03T14:37:06","modified_gmt":"2023-11-03T18:37:06","slug":"rbc-survey-shows-three-myths-about-estate-planning","status":"publish","type":"page","link":"https:\/\/www.rbcwealthmanagement.com\/en-ca\/newsletters\/rbc-survey-shows-three-myths-about-estate-planning","title":{"rendered":"RBC survey shows three myths about estate planning"},"content":{"rendered":"\n

RBC survey shows three myths about estate planning<\/span><\/h1>\n

Why Canadians need to update their Wills, executor and power of attorney<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\n\n\n\n

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After living through the COVID-19 pandemic, many Canadians are saying they need an up-to-date Will and estate plan. But, despite this, fewer than half of Canadians have a Will, according to a recent RBC Royal Trust survey. What\u2019s more, only one out of three Canadians have appointed a Power of Attorney for themselves.<\/p>\n\n\n\n

\u201cDuring the pandemic, many Canadians talked about the need to get their estate plans in order,\u201d says Leanne Kaufman, President & CEO, RBC Royal Trust. \u201cSo we wanted to survey the general public to see if they were acting on that. What we found is that Canadians are still underprepared when it comes to estate planning, with less than half even having a Will.\u201d<\/p>\n\n\n\n

The survey, conducted by Ipsos, also asked Canadians about their reasons for writing a Will, naming an executor in their Will, or appointing a Power of Attorney. It revealed that Canadians are holding onto some persistent misconceptions \u2013 or myths \u2013 about estate planning.<\/p>\n\n\n\n

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Myth #1. I don\u2019t need a Will unless I\u2019m older or very wealthy.<\/h4>\n<\/div>\n<\/div>\n\n\n\n

The foundation of any estate plan is a valid, up-to-date Will that formally documents your final wishes and names your executor. According to the survey, 48% of all Canadians aged 18+ have a Will. That number drops sharply among younger Canadians, with only 34% of Canadians aged 35-54 and 30% of Canadians aged 18-34 having one.<\/p>\n\n\n\n

When asked about their reasons for not having a Will, 21% of survey respondents said they don\u2019t have enough assets, 21% said they were too young, and 18% said their finances weren\u2019t complicated enough.<\/p>\n\n\n\n

Among those who do have a Will, 41% said they got one because they\u2019d reached the age where they thought it was appropriate, while 14% said they\u2019d reached a certain asset threshold. These were the top two reasons cited by survey respondents, suggesting that many Canadians see Wills and estate planning as something that you only need if you\u2019re older or wealthier. In fact, there are many important reasons for adults of all ages to have an up-to-date Will and estate plan.<\/p>\n\n\n\n

\u201cIf you die without a Will, your family may not know your wishes and there can be family disputes,\u201d says Kaufman. \u201cUltimately, your province or territory will determine how your estate is settled, and this often means your estate pays more tax and takes longer to settle.\u201d<\/p>\n\n\n\n

By having a Will, you can ensure your family knows your final wishes for everything from how your assets are distributed and what funeral arrangements you want, to who you want to be guardian of your minor children and what happens to your pets.<\/p>\n\n\n\n

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Myth #2. I don\u2019t need to appoint a Power of Attorney unless I\u2019m older or in poor health.<\/h4>\n<\/div>\n<\/div>\n\n\n\n

A Power of Attorney (or Mandatary in Quebec) is someone you appoint to be responsible for making important decisions about your finances or health care if you\u2019re unable to make these decisions yourself, for example, due to incapacity.<\/p>\n\n\n\n

Yet, according to the RBC Royal Trust survey, only 35% of Canadians have appointed a Power of Attorney for themselves. \u201cI\u2019m too young\u201d (16%) or \u201cI\u2019m in good health\u201d (15%) were two of the top reasons why they haven\u2019t done so.<\/p>\n\n\n\n

\u201cWhile it\u2019s true you may need a Power of Attorney when you are older and experiencing poor health, the time to appoint your Power of Attorney is before you need one,\u201d says Kaufman. \u201cThings can change quickly, and you can\u2019t always predict exactly when you will need your Power of Attorney. If you don\u2019t have one in place when the time comes, your family members may need to get that authority from the courts, which can take time, add to their stress and cost money.\u201d<\/p>\n\n\n\n

Though survey respondents cited young age and good health as two of the main reasons why they haven\u2019t appointed a Power of Attorney, the number one reason was simply because they don\u2019t know where to start (23%). A qualified professional estate lawyer, in addition to helping with your Will, can also help with your Power of Attorney.<\/p>\n\n\n\n

One of your Power of Attorney\u2019s responsibilities is making decisions about your finances, including your investments, should you be unable to make these decisions yourself. That\u2019s why it\u2019s important for us to have the name and contact information of your Power of Attorney on file. Please keep your Investment Advisor up to date about your current Power of Attorney and how they can be contacted.<\/strong><\/p>\n\n\n\n

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Myth #3. I can\u2019t get any help being an executor.<\/h4>\n<\/div>\n<\/div>\n\n\n\n

When creating or updating their Will, people generally name a close family member or friend as their executor. As an executor of a Will, you\u2019re legally responsible for dozens of tasks from locating the Will and valuing assets to filing final taxes and paying bequests to beneficiaries. For some, it can be overwhelming, especially if they have to travel, take time off work or balance their own family responsibilities, all at a time when they\u2019re grieving.<\/p>\n\n\n\n

Yet according to the survey, relatively few Canadians are aware that they can get help from a professional executor, such as a trust company (41%). A trust company is one of your options \u2013 whether you\u2019re naming your executor or you\u2019ve been named an executor \u2013 and can assist with some or all of an executor\u2019s duties.<\/p>\n\n\n\n

For more information about how we can help with your estate planning, please contact your Investment Advisor.<\/p>\n\n\n\n

Ipsos\/RBC estate planning survey<\/h2>\n\n\n\n
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10 key stats<\/h4>\n