Highlights:

• An early inheritance can bring families closer together (hint: it’s about spending quality time together)
• Why waiting to pass down your wealth might cost your kids more than you think
• How giving your inheritance early could save your family from unnecessary taxes and fees

You’ve worked hard, saved well, and built a solid foundation for yourself and your family.

But what if your money could make a bigger difference if you shared it now, instead of waiting to leave it later?

You might want to give an early inheritance so you can be part of seeing your children enjoy it.

Whether it’s buying a home, paying off student loans, or starting a business, your support could change their lives in ways that might be harder to achieve later.

According to a study by Edward Jones, “almost two-thirds (65%) of Canadians said they’re looking to pass along their inheritance, or at least a portion of it, to support their loved ones before they’re gone.”

This can be huge in helping your children reach major life milestones.

Many younger adults are grappling with significant financial challenges, including skyrocketing housing costs, inflation, and growing student debt.

For example, the average price of a home in Canada is now over $700,000, making it extremely difficult for many first-time buyers to enter the market.

An early inheritance can give your kids financial stability now - when they need it most.

The power of helping now

This is your chance to see the joy, relief, and opportunities your financial gift brings.

Imagine being there to celebrate milestones like a first home, paying off their student loans, funding your grandkid’s future education, or all going on a vacation together that creates lifelong memories.

An early inheritance isn’t just about financial support – it’s about creating experiences and celebrating milestones together.

It relieves stress later

Beyond the emotional rewards, an early inheritance can also ease the burden for your children down the road.

​​Few things are as emotionally devastating as losing a parent. (Maybe you’ve been through it yourself.)

By giving now, you reduce the amount of estate paperwork, taxes, and administrative tasks they’ll need to handle after you’re gone.

Giving your children time and space to grieve without being bogged down with paperwork makes this challenging time a little easier.

Save on taxes and fees

An early inheritance doesn’t just benefit your family emotionally – it also has practical financial advantages.

Lower probate fees

Giving assets while alive reduces the size of your estate, which can minimize or eliminate probate fees later on.

For example, in Ontario, probate fees are $15 for every $1,000 above $50,000 of estate value. A smaller estate means less money paid in fees.

No gift tax

Canada doesn’t have a gift tax, so you can give cash during your lifetime without your children having to pay tax on what they receive.

You can also gift property - but if it’s not your primary residence, there may be capital gains tax.

Capital gains tax planning

If you give property or investments now, you might have to pay capital gains tax - but it gives you more control over managing those taxes. Plus you’ll lock in the current value, which can save on taxes in the future if it keeps going up.

A financial boost when it matters most

For many young adults, the financial challenges today are very different from what you may have experienced years ago.

Housing prices are higher than ever, student debt can feel overwhelming, and having a family often comes with hefty price tags.

An early inheritance gives your children the leg up they need to overcome these challenges. For instance:

• Buying a home: The rising cost of real estate can make homeownership feel out of reach. An early inheritance can help your kids save for a down payment or reduce their mortgage burden.
• Paying off student loans: Many young adults carry student debt well into their 30s and 40s. Your financial gift could help them pay it off faster, giving them more breathing room to focus on building their future.
• Having a safety net: It can improve their quality of life, contribute to their retirement fund, and give them a financial cushion for whatever life throws at them.

Simplify things in the future

An early inheritance can make things easier for your family when it’s time to settle your estate.

Fewer assets in your estate might mean less paperwork, fewer probate fees, and less risk of family disagreements.

It doesn’t have to be all or nothing

Giving now doesn’t mean giving everything.

Your own financial security and long-term plans are the top priority!

Create a giving plan that works for you.

Whether you give a lump sum, smaller gifts over time, or even a gift of property with shared ownership, there are many ways to structure your giving.

You can also gift experiences the whole family can share. Treating everyone to an amazing family vacation will give everyone memories they’ll enjoy for a lifetime.

The joy of giving

Think about how cool it is to actually be there when your kids use their inheritance.

You get to be there for the journey, living all the exciting moments together and celebrating alongside them.

It becomes this incredible shared experience where you're not just the person who made it possible, but their trusted advisor and biggest fan as they build their future.

It can bring your whole family closer together.

Interested in exploring your options?

If you’ve been thinking about giving an early inheritance, take some time to evaluate your finances, goals, and how your gift could impact you and your children.

Talking to a financial advisor or estate planner can help you navigate the process and ensure your giving plan is thoughtful and sustainable.

At the end of the day, your financial legacy isn’t just about what you leave behind – it’s about the difference you make while you’re here.

By giving earlier, you can create memories, opportunities, and a stronger future for the people you care about most - your family!