Almost a quarter of wealthy Canadians are very concerned about how their children will manage their estate once they're gone, according to a new BMO Harris Private Banking survey.
The survey conducted by Ipsos Reid found that 22% of Canadians with estates worth more than $500,000 had questions about their children's ability to manage their inheritance.
About 40% were concerned that the inheritance would be spent wastefully, and 16% of those concerned said they believe their child is under the influence of a person they don't trust.
Despite these findings, 80% of respondents were expecting to leave an estate to their children.
About 31% of respondents have included suggestions in their will as to how they want their children to manage their inheritance. Forty-three per cent of wealthy Canadians surveyed said they plan to use a trust in their will to address their concerns.
But it's important to get professional advice, said Jean Blacklock, vice-president and managing director of wealth services at BMO Trust Company. "Some ideas are better than others."
More than three-quarters of respondents have discussed their estate management ideas with their spouse, but only 38% have discussed them with a professional. About 20% of respondents said they did not know how their concerns regarding their children's lack of fiscal responsibility would affect their estate planning.