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On February 18, 2016, the Globe and Mail reported that aging parents may encounter difficulties when deciding how to distribute their assets to their children without causing family conflict. Citing a Statistics Canada analysis that shows that the average wealth of Canadian families is rising, the article notes that an unexpected transfer of assets may lead to family disputes, and suggests that parents should initiate open dialogue with their children regarding parents’ wishes.
Considering that wills are often challenged on the basis that the testator lacked testamentary capacity, did not know and approve of the contents of the will, or was unduly influenced, a discussion regarding parents’ wishes may help to offset the surprise and tension that can arise in the wake of a parent’s death. At Whaley Estate Litigation, we frequently see conflict among family members in the context of wills and complex gifts, demonstrating the importance of careful and comprehensive estate planning.
The article concludes with the caution that parents often transfer assets to their children while still alive, which can lead to depletion of parents’ assets during their lifetimes. The article notes that living costs of seniors may increase over time, and that it may be pragmatic to maintain ownership of assets in order to adequately fund retirement.
