In this article, Amélie discusses the need for legacy planning. She also shares some new resources to help Clients protect their legacy.
Everyone leaves a legacy, regardless of their financial status. Legacy means memories, stories and possessions people have collected during their lifetime.
Talking with Clients about their legacy wishes is a foundational part of your relationship with them. It’s about learning what’s important to them. Understanding how they want to be remembered. Recognizing how loved ones fit into their legacy plan. Connecting with those who matter most to them.
This new video with emotional images reminds Clients about the legacy they’ll share. You could share it with Clients to get them thinking about the memories they’ll want to preserve.
Many working Canadians aren’t taking even the most basic, necessary step to pass on their legacy:
Two-thirds of working Canadians don’t have a will 1
But it takes much more than a will to pass on that legacy. Most Canadians aren’t talking about how they want to share their legacy:
58% of affluent Canadians haven’t discussed their wishes with their heirs 2
Help Clients start conversations about their wishes with their children and heirs. You’ll strengthen current relationships, build new ones, and remove some financial uncertainty.
Help Clients leave their legacy – their way
Many Clients may be avoiding wealth and legacy conversations:
- 6 out of 10 (61%) haven’t discussed or aren’t sure if they’ve discussed family wealth management with their advisors. 3
When family members do have these conversations with advisors, it’s a positive experience:
- 79% of investors say the discussion was extremely or very helpful. 4
This advisor-facing microsite can answer questions Clients may ask about legacy planning:
- Do I have a proper, written will, and is it up to date?
- Am I sharing my legacy the way I want to with my beneficiaries, charities or religious organization?
- Are my children or grandchildren prepared to handle wealth?
- How can I talk to my family about money?
- Are there products to help me pass on my wealth, exactly how I want?
It’s a responsible conversation. And one worth having.
Estimates of intergenerational wealth transfers use massive amounts of money:
- $1 trillion in wealth will move to heirs in Canada over 10 years. 5
- Across North America, $30-trillion in assets will move from one generation to the next over the next 30 to 40 years. 6
Preparing now for any wealth transfers can reduce financial stress during a death in the family. You can help Clients make a plan to protect their legacy. You’ll benefit when you:
- Develop new relationships.
- Establish a rapport with Clients’ children. (One survey reports two-thirds of children fire their parents’ advisors after receiving an inheritance. 7)
- Reinforce the value of your holistic financial advice today.
With your advice, families can remain whole and harmonious after parents pass away. And you’ll earn the respected position of the trusted family wealth advisor.
Certain products can direct family members or charitable organizations to follow Clients’ wishes. Sun Life GIFs can keep investments outside the probate process, for a private and efficient movement of wealth.
Explain to Clients what guaranteed investment funds/segregated funds are and how they work. These new resources will help:
- What are GIFs?
- Inside segregated fund MERs — Understanding the management expense ratio [Use this piece in front of clients to explain Sun Life GIFs costs.]
To learn more about Sun Life’s wealth and estate planning initiatives and resources, contact the Sun Life Wealth Sales team.
1 2019 Sun Life Barometer Report.
2 Environics Research and Investment Planning Council/Private Wealth poll, January 2018.
3 MFS Investing Sentiment Insights, 2016.
4 MFS Investing Sentiment Insights, 2016.
5 Strategic Insights, January 2018.
6 “The ‘Greater’ Wealth Transfer,” Accenture, 2015.
7 JD Power, “Millennial investor loyalty hinges on advisor relationship, not technology,” March 29, 2018.