{"id":14607,"date":"2023-05-17T00:00:00","date_gmt":"2023-05-17T00:00:00","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-ca\/newsroom\/2023-05-16\/less-than-half-of-canadians-have-a-will-and-many-dont-even-know-where-to-start\/"},"modified":"2023-10-05T08:47:52","modified_gmt":"2023-10-05T12:47:52","slug":"less-than-half-of-canadians-have-a-will-and-many-dont-even-know-where-to-start","status":"publish","type":"rbcwm_newsroom","link":"https:\/\/www.rbcwealthmanagement.com\/en-ca\/newsroom\/2023-05-17\/less-than-half-of-canadians-have-a-will-and-many-dont-even-know-where-to-start","title":{"rendered":"Less than half of Canadians have a Will\u2014and many don\u2019t even know where to start"},"content":{"rendered":"\n

TORONTO, May 17, 2023 <\/strong> \u2013 The vast majority of Canadians believe it\u2019s important to prepare a will or appoint a power of attorney to manage their affairs if they die or become incapacitated, but less than half of them have actually done so \u2014 and many of them don\u2019t even know where to start.<\/p>\n\n\n\n

A new report by the National Institute on Ageing (NIA) in collaboration with RBC Royal Trust finds that only 48 per cent of Canadians have a will; that number drops to 34 per cent for those aged 35 to 54. About one-third of Canadians (35 per cent) have appointed a power of attorney (POA), including 28 per cent of those aged 35-54 and only 53 per cent of those aged 55 and older.<\/p>\n\n\n\n

The report, titled Where There\u2019s a Will, There\u2019s a Way: Exploring Canadian Perspectives on Estate Planning, <\/a> looks at how well Canadians understand the importance of estate planning, whether they have taken steps to create an estate plan, and what\u2019s stopping them from doing so if they haven\u2019t already. It is based on a survey of 2,001 Canadians conducted by Ipsos in April 2022.<\/p>\n\n\n\n

Estate planning can be an important way for adults of all ages to avoid unnecessary hardship and uncertainty in their later years. It allows individuals to outline their preferences for medical treatments and long-term care (LTC) services; establish how to cover the potential costs of care; and appoint powers of attorney to manage their financial affairs or make medical decisions if they are no longer able to.<\/p>\n\n\n\n

“Estate planning can support Ageing in the Right Place by getting Canadians to consider potential LTC options and their associated costs, and ensuring that their preferences are respected in the future,” said Dr. Samir Sinha, director of Health Policy Research for the NIA.<\/p>\n\n\n\n

Estimates suggest that up to $1 trillion could pass from baby boomers to younger generations in Canada over the next decade. Whether Canadians have established wills and estate plans will be central to the overall success of these wealth transfers, especially as family structures become increasingly diverse and complex. Unconventional family arrangements can complicate the distribution of assets following a death, particularly when a person dies without a will.<\/p>\n\n\n\n

“Starting those conversations early on with family and your advisor and getting your will and POAs in order are the best ways to provide peace of mind when it comes to estate planning;\u201d said Leanne Kaufman, president and CEO, RBC Royal Trust. \u201cThey are the cornerstones of any comprehensive financial plan.”<\/p>\n\n\n\n

The survey identified several barriers that can stop Canadians from creating a will or appointing a power of attorney, many of which relate to financial literacy challenges:<\/p>\n\n\n\n