Canadian Millennials are not seeking financial help or professional advice when they receive an inheritance, according to the findings of a new survey from TD Bank.
The survey, released Aug. 14, revealed that while 83 per cent of Millennials who have received, or who anticipate receiving, an inheritance feel confident in their ability to manage their inheritance, 46 per cent of those who have already inherited wish they had sought professional advice on how to manage their new-found wealth.
Becoming a high-net-worth individual overnight
"Managing an inheritance can be incredibly overwhelming, especially for those Millennials who are typically not as well-versed in managing larger sums of money or assets. When receiving an inheritance, it is all too easy to become overwhelmed and make decisions you later regret," said Jeet Dhillon, Vice President and Senior Portfolio Manager, TD Wealth. "This is particularly true in cases where a large inheritance makes you a high-net-worth individual overnight, as the sums involved tend to be bigger and the consequences of the choices you make are magnified."
The survey also showed that 41 per cent of Canadian Millennials expect to receive an inheritance or have already received one. Among these Millennials, 60 per cent anticipate they will receive cash, while 53 per cent foresee inheriting a property or the proceeds from the sale of one.
Work with an advisor
TD recommends heirs work with a trusted advisor to manage their new wealth. “An advisor can help you meet your financial goals by providing a holistic picture of your finances by considering a range of factors, such as the implications of tax planning and the potential return on any investments,” says the bank.