New survey from Edward Jones finds that meaning and relationships take precedence over dollars and cents

Canadians want the inheritances they leave to offer meaning, to themselves and to their loved ones. That’s the core takeaway of a study of Canadians conducted for Edward Jones Canada published today. The study found that 59 per cent of Canadians are prioritizing financial security for their heirs and loved ones, but in addition if round that half of Canadians want to pass on life lessons and almost one third want to share family traditions as part of their legacy plans. It’s a more human view of estate planning that may highlight the roles advisors can play in this process.
Tracy McLennan, Director, Client Consultation Group at Edward Jones Canada, explained how advisors can act as facilitators between different estate planning stakeholders. She sees the advisor as playing a crucial role to help clients achieve a vision of their legacy that reflects their whole selves and their desire to leave behind something meaningful. She outlined some of the hurdles to a fulsome legacy plan that advisors can help their clients cross and why the inherently relational nature of this business helps position advisors for a new kind of legacy planning.
“I've heard many advisors say ‘I'm a financial advisor not a psychologist,’ I have heard that discomfort and of course every firm has its rules but we don't give tax or legal advice, we leave that to the tax and legal professionals, but I would reframe [advisors’ roles] a little bit to say that they’re helping facilitate a deeper conversation with genuine curiosity,” McLennan says. “our role is to help our clients ask the right questions of themselves and then get the proper advice from their legal and tax professionals.”
McLennan gives the example of conversations about giving part of an inheritance before passing away, which half of the survey respondents said they want to do. She says that asking something like ‘how do you feel about your kids being 67 when they receive their inheritance?’ can reframe and reshape a client’s mentality around these questions. Those questions, and the depth of the relationships that advisors have with their clients, can allow a fulsome view of the client’s life, allowing advisors to craft more nuanced plans for their clients’ legacy.
That nuance may be increasingly in demand. The survey results found that a growing number of younger Canadians prefer more unconventional beneficiaries in their legacy plans, including 17 per cent of younger adults who would name close friends as beneficiaries. There is also a growing diversity of goals for any gifts, especially those given before death. 57 per cent of those planning to leave a living gift want to help loved ones with homeownership, 36 per cent want to help with unforeseen expenses, 32 per cent want to create meaningful family experiences, and 31 per cent want to support with the care and education needs of future generations.
Advisors, McLennan says, can help their clients understand and select from this growing ‘menu’ of options. By understanding the client and what they want, they can furnish the right introductions to experts who can execute on those wishes.
The survey did highlight some hurdles to that execution, though. 29 per cent of respondents say that ensuring proper documentation is their biggest hurdle, while one quarter say they haven’t yet thought meaningfully about their legacy plans. McLennan attributes some of that to the emotional difficulty that comes with discussing death, inheritance, and legacy. Sometimes these conversations are happening in the context of blended families, resulting in more emotional, psychological, and financial hurdles.
When their clients face these hurdles, McLennan believes that advisors simply “have to go there.” Despite whatever challenges may come with those conversations, being present for those clients and finding the right person to answer their questions can help a great deal in starting to unwind those emotions.
Despite the value McLennan sees advisors being able to bring to this process, the survey found that advisors are not the natural first point of contact for many Canadians. While 31 per cent will go to their advisors for these issues, the same proportion of respondents said they go to family and friends for advice on estate and legacy plans. The need for more nuanced plans that reflect the people behind them, though, presents advisors with an opportunity to show value, provided they’re willing to do the necessary work.
“We have to be comfortable that facilitating conversation beyond investments,” McLennan says. “We need to talk about what those investments will do for clients, because money is just a means to something. It's a means to accomplishing goals, but we need to understand what those goals are.”