Canada is undergoing a historic intergenerational wealth transfer, with families increasingly passing on assets while still living to support younger generations in buying homes and building financial security. In this episode of Smart Advice, host Carissa Lucreziano and Richard Voss, Director of Wealth Strategies at CIBC Private Wealth, discuss the practical and emotional aspects of wealth transfer. Tune in for expert insights on estate planning, the importance of open family dialogue, building independent financial wealth, and strategies when receiving an inheritance, to help families approach wealth transfer thoughtfully and confidently.
[02:45] Richard: “And so the question then arises, could a gift have been more effective and valued if they had received it at an earlier age? And I would argue, the answer to that is a resounding yes.”
[05:38] Richard: “Making a will is so important because it provides guidance to your survivors and your executors on how you want your assets divided. It reduces conflicts as your instructions are captured in a clear way and are formally recorded in a legal document.”
[10:28] Richard: “Having everyone together is better than having separate one on one conversations. It allows for consistency and continuity and the ability to ask questions both ways.”
Richard Voss is the Director of Wealth Strategies at CIBC Private Wealth. He has spent years helping Canadians navigate the complexities of financial decision-making. His work focuses on creating thoughtful strategies that align financial goals with personal values. Through his guidance, families gain clarity on how to preserve and share wealth across generations. Richard is known for bringing both technical expertise and a deeply human approach to every conversation.
Richard understands that strategic insight must also have empathy. He helps clients make informed decisions about wills, trusts, and long-term planning whilst maintaining harmony within their families. His approach emphasizes education, collaboration, and confidence in managing wealth. Above all, Richard is passionate about helping Canadians protect what matters most to them while building legacies.
Connect and learn more about Richard Voss on his LinkedIn or CIBC Profile.
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Post a review and share it! If you enjoyed tuning in, leave us a review. You can also send this to your friends and family. Wealth is changing hands faster than ever as a new generation steps into financial responsibility. Families across Canada are learning how to give, receive, and plan with purpose. This brings both opportunities and challenges, from tax implications to keeping family conversations. Explore how thoughtful planning can make every wealth transfer count, today and for the generations to come.
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We are living through the biggest intergenerational wealth transfer in Canadian history. Over the next two decades, baby boomers are expected to pass along as much as one to two trillion dollars in assets to their children and grandchildren. And not just through traditional inheritance, but increasingly, while they are alive.
Carissa Lucreziano: Welcome to Smart Advice, a podcast connecting you with timely financial advice, investment strategies and economic trends, empowering you with insights to make informed decisions about your money. I'm CIBC’s financial advice expert, Carissa Lucreziano.
Many families want to help their loved ones now, whether that's with a first home, starting a business or giving a financial boost when it matters most. But it's not always that simple, and it can get complicated fast.
Without open conversations and planning, even the best intentions can lead to family tension, tax inefficiencies, or missed opportunities to pass on and protect assets in a meaningful way. So how can families get this right?
Joining me today is Richard Voss, Director of Wealth Strategies at CIBC Private Wealth. Richard helps families think through the big picture, how to navigate financial complexities, protect what matters, and pass on their wealth in a way that reflects their values. With years of experience and a personal, grounded approach, he's helped countless families make these important decisions with confidence. Together, we will explore how to make the transfer of wealth, whether today or tomorrow, thoughtful, structured and stress-free.
Richard, welcome to the Smart Advice Podcast. I'm so happy to have you.
Richard Voss: Thank you, Carissa. It's great to be here.
Carissa: So,Richard, we are seeing this huge shift in wealth across generations. But what is interesting is how many families want to share it now, either to provide financial support in a big way, or wanting to see the impact of that gift. Why is this idea of giving during your lifetime becoming more common, and what should families think about before making that kind of gift?
Richard: Thank you, Carissa, this is a great opening question. You know, I would say that there's many factors involved with giving while you're living becoming much more common.
The first area I'd like to take a look at is demographics.
Canadians are living longer. And because they are living longer, many times, they're transferring their wealth through their wills at a much older age. And so beneficiaries as well are inheriting too at a much later time, sometimes as much as 20 years later. In fact, I've actually seen some beneficiaries inheriting in their 70s.
And so the question then arises: Could a gift have been more effective and valued if they had received it at an earlier age? And I would argue, the answer to that is a resounding yes.
People have learned that gifting during their lifetime is a great way for them to support the rising generations. Maybe with a home or their education, to start a business, to help them build the legacy for the next generation. It is also an opportunity for the gifters to see how their gift will positively impact the next generation.
Carissa: It's incredible that so many Canadians, they want to help their families now and down the road, yet, like a staggering 50% of Canadians, don't have a will. And I know you know this stat, Richard, really, really well, it stayed static over the years. So why do you think that is, and what makes having a will, such an important anchor of the overall planning?
Richard: Another great question for us to really start to immerse ourselves in this topic.
In terms of this statistic, while it is 50% of Canadians that don't have a will, different age groups have different participation rates with will planning. And it's not too surprising that the older you are, the higher the chances that you have a will.
For example, my understanding is that 83% of baby boomers, 29% of the millennials have a will, and only 10% of Gen Z's have a will, and I believe this is from the Willful report. If this statistic is pretty constant, then I would imagine that the overall average of 50% is pretty constant too.
And when we think about the phenomenon internationally, Canada is actually not alone among other common law countries. So countries that have a common law legal system. In the US, the number of people that have a will is actually only 32%. In the UK, it's closer to us, it's about 47% and Australia happens to have about 60% of its population with wills. So there are big gaps around the world.
And I think you know, some of the biggest reasons why people don't have wills is they don't like to contemplate their mortality or incapacity. And some people even think it is bad luck to do so. Also, in our younger years, we typically have less wealth, our mortality feels far off in the distance. We have less responsibility, and so the need to create a will may seem less pressing.
However, I believe it is important that you make your will once you reach the age of majority, and here's why.
Making a will is so important because it provides guidance to your survivors and your executors on how you want your assets divided. It reduces conflicts as your instructions are captured in a clear way and are formally recorded in a legal document. It ensures that you decide how your estate is divided.
If you don't have a will, then it is your provincial or territorial legislation that decides where your assets go. And as an example, many people think that all their assets automatically go to a surviving spouse or partner. But that could be a grave error. Sorry, pardon that pun. It is often not the case, especially when there are children involved.
In some cases, when a parent dies young without a will, a minor child could inherit up to and close to 50% of the remaining estate of a deceased parent at the age of 18, or even 100% of the deceased parent's estate, if the parent is a single parent. Now, I don't know about you, Carissa, but I would find it hard to find a parent that would be comfortable with a very young 18-year-old, all of a sudden having a significant windfall that they could make decisions on.
Carissa: So Richard, let's dive into what makes up an estate plan. Many people think that, you know, if they have a will and maybe power of attorney, that's an estate plan. So, is a will and estate plan something different? Can you break it down for us?
Richard: Yeah, I'd be happy to, Carissa, and that's an excellent question.
For some people in simple situations, a will in itself can be considered an estate plan. But I would argue that even such an estate plan is still incomplete, because, as you just mentioned, powers of attorney for property and personal care should also be part of an estate plan. And for some people that have more complex situations, there might be other elements that make up their estate plan.
And so some of those elements could include beneficiary designations on their registered plans like RSPs, tax-free savings accounts, pensions and life insurance policies. For others, it could include family trusts, life interest trusts, Alter Ego, and joint partner trusts. There are many different options.
If we go a little further even, we could also argue that charitable structures like donor-advised funds or foundations can also be considered part of your estate plan. So there are many additional elements that could be added. And many times, for many people, a will in itself is not a complete estate plan.
Carissa: A big consideration many probably don't even think about. It just shows and displays the complexities and how important it is to get a will and to get some of this stuff done.
Of course, it's not just about having the documents in place. The conversation with your family matters just as much, and it's often the piece that gets overlooked. I know you talk about this a lot, about the family conversation and how important and fundamental it is. CIBC did a poll called the CIBC Inheritance and Wealth Transfer Poll, and found that nearly half of Canadian families have yet to have the discussion on inheritance. That's huge.
I know you have a lot of great tips and advice here, and I know you do a lot of work with families around the conversation when it comes to estate planning. What's your advice for getting those conversations started in a way that actually works and can be productive?
Richard: You know, Carissa, I have to give credit where credit is due. And I'm going to challenge our listeners to check this out on cibc.com. If they were to go into the search field and simply type in planning an estate, they will come across 14 amazing articles about estates and wealth transfer. Four of those articles are dedicated to having conversations about estates, so there's wonderful guidance in those four articles. But I'll also share my perspective with you.
I encourage everybody who's interested in exploring the idea of talking about their estate and wealth transfer with their family to look at these resources separately, but let's start.
A discussion around death, incapacity, and money can be difficult. One thing to think about is to use family meetings as your medium to have these discussions. Having everyone together is better than having separate one-on-one conversations. It allows for consistency and continuity and the ability to ask questions both ways.
Try to establish a regular pattern that works for your family. Could be six times a year, quarterly, semi-annually, annually, whatever makes sense. If your family is international or even in other provinces in Canada, you could consider hybrid meetings, where some people come together in person, and others join in virtually.
Next step, establish meeting rules or guidelines to create a safe and judgment-free place for everyone's voice to be heard. Start slow. Explain what you're hoping to accomplish when having family discussions about the future. As a leader, you can ask open questions about the future and then listen without interruption, and allow others to ask questions too.
Through this process, share your values that you believe are tied to your family history, your wealth and your legacy, and ask others what they think. Speak conceptually about your estate in terms of its different components.
Numbers are optional and can be spoken about gradually. Ask your beneficiaries what assets of the estate they are interested in. And this is a big thing, especially when it comes to personal assets. Many times, the current generation believes that everything that they treasure in a personal asset will automatically be treasured by the generations that follow.
And I just wanted to share that I came across one client's will that said something like, “We do not want our children to feel burdened to hang on to any of our personal items that they do not want or like.” How liberating is that?
Carissa: Very.
Richard: Yes. Also, talk about your medical wishes, how you want your affairs managed when you can no longer do so. So that is assuming that you might become incapacitated or unable to cope with the burden of managing your own affairs. Then finally, talk about your final wishes, including funeral and end-of-life celebration.
So that is a way to start. You don't have to hit all those points. But I think if you know, at least in the first meeting, but if you sort of get there over time, it's so important to just start. And over time, you will find your way. When I say you, I actually mean all of you, because it really is a joint effort.
It's not just the current generation that owns the responsibility here for communication. Communication is definitely two-way. It's so important that everybody that's participating in this meeting feels that they have the ability to speak without judgment. I think that is such a fundamental piece in this process.
Carissa: On the topic of inheritance, let's talk about the next generation, the millennials and Gen Zs.
An inheritance is an amazing gift, but it may not be guaranteed. A Money Wise Institute Survey from earlier this year stated that 80% of parents say that the rising cost of living could impact their giving through inheritance.
So what are some practical tips for young Canadians to start building their own financial independence and long-term wealth as that foundation? And if the inheritance comes, it comes. But there's no guarantee that it will be what it was, and if it is coming at all.
Richard: Yes, great point. None of us can really count upon an inheritance, right? Although many times in a vow between a couple, they might say, for richer or for poorer. But that also exists in families, in between generations.
And so you can have situations where there is wealth in a family. There is surplus wealth, but because of changes due to financial fortunes or unexpected expenditures of health for the current generation, that surplus may evaporate.
And so to anybody who could potentially inherit, but particularly the rising generations, the millennials and the Gen Zs, I encourage you to do achieve the steps towards financial maturity.
Live within your means. Make sure that your income covers all of your expenses, including your savings.
Have purposeful savings and investment plans. Pay yourself first by having an automatic saving or investment plan that takes money out of your account after every paycheck. Further to that, your income should be directed to the following uses of cash: 20% of your income should go to savings, 50% to fixed expenses, and 30% to discretionary expenses to help you achieve your life goals.
Number three, use smart debt to build your net worth and income. Smart debt includes a mortgage for a home, a borrow-to-invest strategy, or even a car loan to help you travel to a higher-paying job.
Do know how to do your own taxes and do them wherever possible.
Make sure you have up-to-date wills and powers of attorney.
Have proper insurance in place to manage your living risks, including disability, critical illness, and premature death. Also make sure you have insurance in place to cover all your property, casualty, and personal liability risk.
Finally, step seven, work with your financial advisor to have an up-to-date comprehensive financial plan that looks at all aspects of your financial life. Your financial plan should also be updated regularly.
By following these steps, you have the best chances of achieving your own financial security, without relying upon an inheritance. And so when you do your financial plan, I'll also encourage you not to factor in the inheritance into your plan. Try to stand on your own two financial feet, if you will.
And then finally, the last thing I'll say is, remember, you are your own most valuable asset. Keep developing yourself and grow your earning power throughout your working years. Retooling and re-educating yourself along the way is key to generating an above-market salary and bonus. Which in turn, helps you achieve your goals faster, or resets your goals to higher targets and provides you financial flexibility.
Carissa: Those are great tips, Richard.
I think what you mentioned, that one to seven, or I think there were eight thrown in there, is a journey that's anchored by commitment, by managing your finances. But also having a professional, and in this case, an advisor, to help you through it and build that.
I love what you said around really taking control of growing your income over time, and growing your wealth over time. And that is through scaling up your skills, etc, and really thinking about the growth in your income, but also around that purposeful savings. Because once you truly understand that 20-50-30 that you mentioned, that's when you really can understand what you have at the end of the month, at the end of the year, to start putting that away.
Purposeful savings, you know, for a longer term, on a broader scale, as you mentioned, is really investing over the long term and getting that growth. So great tips. I think it's so important for all Canadians. And the earlier you start, the better. It could be just small steps in just starting to manage your savings, imagine managing your finances.
Richard: Actually, your comments are inspiring me to say something a little bit bold, if I may, about that 20-50-30 breakdown for expenses.
And I'll just add a little piece here, and say, if you happen to be either a millennial or a Gen Z, that is still fortunate enough to live at home, and to have some or all of your fixed expenses covered, then I would encourage you to consider whether you could make your savings as high as 70% and your discretionary keep it at 30.
If you're able to pull that off, then you're going to actually accelerate much more quickly than what we've just described here. If you do have the fortune of being at home with some of those expenses covered, you have the ability to save more as well.
Carissa: Yeah, I think you mentioned it earlier, but like, I encourage everybody to go on to cibc.com/smartadvice, and play around with the financial tools that we have. Because the one, which is the Investment Growth Calculator, you can just play around with it and put in some numbers.
Regular savings earlier for a longer period of time will get you further in the long term, and just even looking at that, regular savings compounded with a return, it's just again, the earlier you start, the better.
So Richard, finally, for those who are receiving an inheritance or a living gift. This can feel like hitting the jackpot or the lottery, especially if you didn't really know what you were inheriting, or maybe the monetary size is large. It is a really opportune moment to pause and think of next steps and be mindful.
Although in this overwhelming situation, or moment of receiving a sizable inheritance, what would you say are the key things to keep in mind for anybody that's inheriting? Whether it's property, whether it's money, portfolio of investments, whatever. What to keep in mind to handle this wisely and make the most of such a life changing opportunity?
Richard: Thank you, Carissa, this is a wonderful way to wrap this all together and tie it all together. If your windfall is through an estate, we suggest that you take it slow. Take some time to go through grief and to honor the person that you've lost.
And think about any guidance, or instructions, or values that they were hoping to transmit to you and to future generations. These items, these values, are oftentimes a big part of your inheritance as well. If the inheritance or gift is of significant value, I suggest that you do a complete review of your finances and seek the advice of a trusted financial advisor. And have a comprehensive financial plan prepared to reflect the different options available to you through this gift.
And if the inheritance is moderate, think of the inheritance as a way for you to strengthen your financial position, by paying down your debt or by maximising savings for an investment goal that you have for you and your family.
Carissa: Thank you, Richard, for that. I think again, this could be a life-changing moment for someone that receives an inheritance. It’s a lot to think about.
What I'm hearing is just the opportunity to pause and really look at your whole financial picture.
But you've given us a lot to think about, not only with this question that we're kind of ending on, but just in general. Inheritance, leaving a legacy, estate planning, really making sure that the next generation is cared for in all ways, shapes or forms, is something that Canadians think a lot about. And many lose sleep over it in terms of getting it right.
You've done a wonderful job of articulating some really thoughtful considerations for our listeners to take away and also to start planning. So thank you, Richard, for being with us today.
Richard: Thank you, Carissa, always a pleasure.
Carissa: Thank you for tuning in to Smart Advice. I'm Carissa Lucreziano. If you enjoyed this episode, feel free to share it with your social network.
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