Canada's Great Wealth Transfer: What Boomers and Their Children Need to Know

Introduction

Canada is in the middle of the largest intergenerational shift of financial resources in its history.

According to the Chartered Professional Accountants of Canada, more than $1 trillion in wealth was expected to move from Baby Boomers to their Gen X and Millennial children between 2023 and 2026. Much of this wealth is tied to real estate, where Boomers benefited from decades of rising property values. The rest sits in registered accounts, pensions, insurance policies, and non-registered investments.

The money is moving. But the conversations and planning behind it often are not.

A 2025 survey by RBC Insurance found that only 15% of Canadians have an estate plan. Even among retirees, only one in four has one. And a 2026 CIBC poll found that while 94% of Canadians believe everyone should have a will, only 52% actually do.

This gap between intention and action is where families run into trouble. Assets transfer whether you plan for it or not. The question is whether they transfer efficiently or whether taxes, legal fees, and family conflict erode what took a lifetime to build.

This post is written for both sides of the transfer: parents who want to pass on wealth effectively, and adult children who want to understand what's coming and how to prepare.

The Scale of the Boomer Wealth Transfer

To understand why this matters, it helps to see the numbers.

Baby Boomers, born between 1946 and 1964, are the wealthiest generation in Canadian history. They entered the workforce during an era of economic expansion, bought homes before prices accelerated beyond reach, and benefited from employer pensions and decades of compounding investment growth.

Now, the leading edge of the Boomer generation is in their late 70s. The trailing edge is in their early 60s. Over the next two decades, a massive volume of assets will change hands through inheritance, gifts, and family support.

This is already happening. CIBC reported that in 2024, nearly one in three first-time homebuyers in Canada received financial help from family members, with the average gift reaching $115,000. That figure was roughly one in five less than a decade earlier.

Statistics Canada data shows that between the first quarter of 2020 and the first quarter of 2024, Millennial households saw their net worth increase by an average of 82%, compared to 30% across all generations. Much of that growth was driven by real estate gains and family financial support.

The wealth is transferring. The question is whether it's transferring well.

What Triggers a Taxable Event When Assets Transfer or Are Inherited

One of the most common misconceptions in estate planning is that inheritance is tax-free in Canada. There is no inheritance tax or estate tax in the traditional sense. But that doesn't mean no tax is owed.

When someone dies, the Canada Revenue Agency treats all of their capital property as if it were sold at fair market value immediately before death. This deemed disposition can trigger significant capital gains on property, investments, and other appreciated assets. The tax is paid by the estate on the deceased's final tax return.

Here's what many families don't realize until it's too late:

Real estate (other than the principal residence) is fully taxable. A cottage, rental property, or investment property will trigger a capital gain based on the difference between the original purchase price and its value at the time of death.

RRSPs and RRIFs are taxed as income. When the account holder dies, the full value of the RRSP or RRIF is included as ordinary income on the final tax return, unless it's rolled over to a surviving spouse. For a $500,000 RRIF, the tax bill at Ontario's top marginal rate could exceed $260,000.

TFSAs pass tax-free, but the details matter. If a spouse is named as successor holder, the account transfers seamlessly. If someone else is named as beneficiary, the account is collapsed, and any growth after the date of death may be taxable.

Cash gifts during your lifetime are generally not taxable. Canada has no gift tax on cash transfers. You can give your adult child $50,000 or $500,000 in cash without either of you owing tax on the transfer. But gifts of property (real estate, stocks, investments) are treated as deemed dispositions at fair market value, which can trigger capital gains for the person giving the gift.

Understanding these rules is the starting point. The next step is making sure your plan accounts for them.

Common Mistakes Families Make When No Estate Plan Exists

When families don't plan, the consequences tend to fall into a few predictable categories.

The tax bill is larger than expected. Without planning, assets are liquidated at the worst possible time to pay taxes that could have been reduced or funded in advance. A cottage that's been in the family for decades gets sold to cover the capital gains on the final return. An RRSP that was meant to support a surviving spouse gets taxed heavily because no spousal rollover was in place.

The wrong people receive the wrong assets. Joint accounts, beneficiary designations, and the terms of a will can all point in different directions. If they're not coordinated, the result may not reflect what the deceased actually wanted. One child gets the house through joint ownership while another receives a taxable RRSP, and neither outcome feels fair.

Family conflict replaces family conversation. When intentions aren't documented and communicated, siblings are left to interpret what their parents meant. This is where estate disputes begin. The cost of litigating an estate can easily exceed what the family was trying to save by avoiding professional advice.

The estate takes years to settle. Without a will, the court appoints an administrator. Without a power of attorney, no one can manage finances if a parent becomes incapacitated. Without clear documentation, every step takes longer, costs more, and creates more stress for the people left to sort it out.

No one planned for incapacity. Estate planning isn't just about death. It's also about what happens if a parent can no longer manage their own affairs. A power of attorney for property and a power of attorney for personal care are just as important as a will. The Scotiatrust Wills and Estate planning Survey found that 41% of Canadians do not have a power of attorney for finances, and 47% lack one for personal and medical care.

Gifting During Your Lifetime vs. Leaving It in Your Estate

One of the most significant shifts in this estate planning is the growing preference for "giving while living." The 2026 CIBC poll found that nearly three-quarters of Canadians who plan to transfer wealth prefer to give gradually during their lifetime, either exclusively or in combination with a lump sum after death.

There are good reasons for this. Gifting during your lifetime lets you see the impact of your generosity. It can help your children when they need it most, such as with a home purchase, education costs, or a business venture. And it can reduce the size of your estate, potentially lowering probate fees and simplifying administration.

But lifetime gifting also requires careful thought.

Cash gifts are straightforward. There is no gift tax in Canada. You can give cash to your adult children without tax consequences for either party. The money is theirs, free and clear.

Property gifts are not straightforward. If you gift real estate, stocks, or other investments to your child, the CRA treats it as a sale at fair market value. You'll owe capital gains tax on any appreciation, even though no money changed hands. Your child receives the asset with a new cost base equal to fair market value at the time of transfer, which can reduce their future tax liability, but it doesn't help you in the current year.

Gifting too much too soon can create risk. If you give away assets you may later need for your own care, you could find yourself financially vulnerable. Long-term care, unexpected health costs, and inflation can all erode a retirement plan that looked solid when the gifts were made. The most effective gifting strategies are ones that account for the giver's ongoing needs first.

Fairness matters. If you help one child with a down payment but not another, is that a gift or an advance on their inheritance? Documenting your intentions and communicating them to your family can prevent misunderstandings later.

How to Start the Conversation with Aging Parents

For adult children, one of the hardest parts of this process is knowing how to bring it up.

Many parents are reluctant to discuss their finances. Some see it as private. Others worry that talking about inheritance will change the family dynamic. And some simply haven't done the planning themselves, so there's nothing to discuss yet.

But the conversation doesn't have to start with dollar amounts or legal documents. It can start with questions like:

• Do you have a will, and is it up to date?
• Have you named someone as your power of attorney?
• Do you have a financial planner, lawyer, or accountant who knows your situation?
• If something happened to you tomorrow, would we know where to find your important documents?
• Is there anything you'd want us to know about your wishes?

These are practical questions, not intrusive ones. They signal that you care about your parents' wellbeing and want to help them avoid the problems that come with no plan.

The timing matters too. Don't wait for a health crisis to start this conversation. By then, options are limited and emotions are high. The best time to plan is when everyone is healthy, clear-headed, and has the time to do it properly.

The Planner's Role in Coordinating with Lawyers and Accountants

Estate planning is not a single conversation with a single professional. It requires coordination among several.

A lawyer drafts the will, establishes powers of attorney, and can set up trusts if needed. They ensure the legal documents reflect your intentions and comply with provincial law.

An accountant addresses the tax implications of different strategies. They can project the tax liability on the final return, model the impact of lifetime gifts, and help structure the estate to minimize unnecessary taxation.

A financial planner helps families see the full picture. We look at how different decisions interact: how a gift today affects retirement cash flow, how a beneficiary designation on an RRSP interacts with the terms of a will, whether insurance makes sense as a tool for covering estate taxes, and whether the overall plan actually achieves what the family is trying to accomplish.

No one professional can do all of this alone. The families who navigate the wealth transfer successfully are the ones who have all three working together, ideally before a crisis forces the conversation.

What Both Sides Can Do Now

For Boomers:

• Get a will in place (or update the one you have)
• Appoint powers of attorney for both property and personal care
• Review your beneficiary designations on all registered accounts and insurance policies
• Talk to a financial planner about the tax implications of your estate
• Have an open conversation with your family about your intentions

For their children:

• Ask the practical questions listed above
• Understand the tax rules around inheritance so you're not caught off guard
• If you receive a significant gift or inheritance, get professional advice before making major decisions with it
• Don't assume your parents have a plan; many don't

This is not just a financial conversation. It's a family conversation. The families that handle it well are the ones who start early, communicate openly, and get professional guidance along the way.

How We Can Help

At Andrew Tricomi Financial Planning, we work with families on both sides of this transition. We help Boomers think through how to structure their estates, coordinate with their lawyers and accountants, and make sure their plan actually reflects what they want. And we help the next generation understand what they're inheriting and how to manage it responsibly.

If your family is navigating this transition, or if you know you need to start the conversation but aren't sure where to begin, we'd be glad to help.

Contact us to schedule a conversation →

 

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Joint Ownership vs. Named Beneficiary: Which Is Better for Your Estate?

 

1. Chartered Professional Accountants of Canada — The next wave of trickle-down wealth (2023) https://www.cpacanada.ca/en/news/pivot-magazine/trickle-down-wealth

2. CBC News — 'A trillion-dollar tsunami': Canadians grapple with unprecedented wealth transfer (February 2025) https://www.cbc.ca/news/canada/saskatchewan/wealth-transfer-inequality-1trillion-1.7462837

3. CIBC — CIBC poll finds disconnect in Canadians' estate planning (June 2026) https://canadiansme.ca/cibc-poll-finds-disconnect-in-canadians-estate-planning-nearly-all-say-a-will-is-essential-yet-only-half-have-one/

4. Ipsos / RBC Insurance — Only 15% of Canadians have Estate Plans (January 2025) https://www.ipsos.com/en-ca/only-15-percent-of-canadians-have-estate-plans

5. Scotiatrust — Wills and Estate Planning Survey (February 2025) https://ceawealth.com/2025/02/08/almost-half-of-all-canadians-lack-estate-plans-leaving-financial-and-medical-decisions-uncertain/

6. Canada Revenue Agency — Gifts and Income Tax 2025 (P113) https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/p113/p113-gifts-income-tax.html

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