A lack of financial education is set to leave families in the U.S, Canada and the U.K. with a $4 trillion burden in the coming years with the next generation failing to plan effectively for inheritance, a new report from RBC Wealth Management has found.
The new survey released Tuesday showed that almost three quarters of respondents felt they lack a full strategy for transferring their wealth to the next generation and just 35 percent of inheritors say they felt prepared by their benefactors before receiving wealth. The survey of 3,014 people focused on independently sourced high net worth and ultra-high net worth individuals. It included a series of online questions as well as in-depth interviews.
Just over half – 54 percent – of the respondents have a will in place but have done little more to prepare beyond this, while one in three have made no preparations at all.
This speaks to a wider issue of financial education within the U.S., Canada and the U.K. On average, individuals in these countries don't engage in structured financial education until the age of 27, leaving many lacking the confidence to make financial decisions and little time to prepare, it said. The survey suggests that inheritance begins at age 29 with the death of a grandparent.