Most Canadians don’t have estate plans, survey finds

“This is followed quickly by: 'If I had known, I would have helped to prepare their finances differently.' It's hard to hear because we know there are ways to make it easier."

Meanwhile, less than four in 10 (38%) retirees have set aside money or have life insurance to pay for final expenses.

Canadians’ plans for their estate

Retirees are also the least likely to be knowledgeable about various types of insurance policies, according to the RBC press release on the survey.

Even though most Canadians surveyed don’t have estate plans, the majority (82%) feel it is important to ensure their family receives money quickly to avoid paying out-of-pocket for a funeral or other end-of-life expenses. As many as 76% want to ensure their estate is taxed as little as possible so as to leave their family a larger inheritance, and 70% want to pass money to their family.

RBC also found that while just over half (53%) of Canadians confess they don’t want to be a burden on their families when they’re gone, they are surprised by the weight of the tasks involved with managing a loved one’s estate, whether they be financial or administrative.

Properly preparing for end-of-life costs

RBC suggests talking with your family and experts in advance can help them navigate complex paperwork, such as closing off bank accounts, paying debts, filing a last income tax return and maintaining property or other assets until they can be sold.

While money may be available for your family, it is often tied up in probate – a legal process that can take several months or more than a year, while a court decides what happens to your financial assets and debts after you're gone and who is authorized to act on your behalf.

However, insurance products like life insurance and segregated funds automatically bypass probate if you name a beneficiary. This means your loved ones will receive any inheritance quickly, so they can be ready for financial surprises that may come their way. It also means you can minimize potential probate-related fees, making sure more money gets to your loved ones.

RBC also stressed the importance of naming beneficiaries, even though it may be difficult or complex based on family dynamics or if there are businesses involved.

Survey methodology

The survey findings come from an Ipsos poll of 1,250 Canadians aged 18 and over conducted on behalf of RBC Insurance. The survey was conducted between July 26 to 29, 2024. Included within this sample is an oversample of 250 Canadians aged 45 to 75 years old with a reported household income of more than $150,000.