Here’s how wealthy Canadians will give their families some $ 2.8 trillion this decade
Immediately after discovering that some Canadians are quick to help their children buy a home, a new report takes an even closer look at the lives of wealthier Canadians. As it turns out, wealthy Canadians are preparing to give their families an astounding $ 2.8 trillion this decade, one way or another.
As evidenced by a new report from Investors Group, there are some 913,000 Canadian households with at least $ 1 million in wealth to invest, which represents a whopping 4.2 tonnes. Open the definition up to “total assets” (which includes cars, art, family businesses, etc.), and that number jumps to $ 11.9t.
So there is a lot of money flowing through the richest families in Canada. And since a good chunk of those people are over 70, IG wanted to review their plans for the next 8 years or so. What they found even made our eyes pop.
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That’s because this decade (2020-2030) wealthy Canadians plan to donate some $ 2.8t to their families, one way or another. First transfers during life and transfers between households.
Basically, these transfers cover two things: giving money to children or others during one’s lifetime and transferring money / property to family members upon the death of a spouse / parent. Together, these two types of transfers add up to nearly $ 1.64 trillion.
Next are intergenerational transfers, which occur when the surviving parent / spouse dies. Right now, taxes and other financial problems are much bigger, but even so, it’s an additional $ 1,207 trillion to come. Yeah, we’re talking big sums of money here.
Now you might be wondering how much actually goes to taxes and the like, and IG has that number too! In both categories, wealthy Canadians will give $ 139 billion in taxes, fees (lawyers, planners, etc.) and “third parties”. To put that in context, it’s just under 5% of literally trillions of dollars.
And there we worry about paying the rent! What’s the next plan? Find a wealthy family and see if they are ready to adopt us because that must be easier than reaching their level if we pay 25% or whatever a year for our jobs under $ 100,000 /year.
To consult the report in its entirety, which is sure to make you feel sensations, right click here.