Canadian heirs are largely not expecting to inherit their parents’ fortunes and don’t seem to mind when it comes to reverse mortgages, a new study suggests.
About 45% of Canadians don’t expect an inheritance from their parents, compared to 35% who do expect to receive a financial bequest, notes the May 2014 survey by Toronto, Ontario-based HomEquity Bank, a provider of the Canadian Home Income Plan (CHIP) reverse mortgage.
Additionally, 94% of respondents who do expect to receive an inheritance say they are willing to give up half of their inheritance to maintain or improve their parents’ lifestyle, compared to just 6% who would not be willing to do so.
“We often find adult children aged 45+ are very focused on what’s best for their parents and they are very willing to forgo half their inheritance to improve their parents’ lifestyle,” stated HomEquity Bank Senior Vice President Yvonne Ziomecki.
In some circumstances, Ziomecki added, funds are required to make home improvements or pay for in-home medical care.
“Adult children of seniors often have their own expenses of paying off the mortgage, putting their kids through school, vacations, etc.,” she stated. “Having to support two households can put a lot of strain on the family as a whole.”
When it comes to gender, HomEquity Bank found women (96%) are slightly more likely than men (92%) to be willing to relinquish half of their inheritance to either maintain or improve their parents’ lifestyle.
Younger children aged 18-34, however, are most likely to expect an inheritance (39%).
“The majority of our clients still leave an inheritance to their children,” stated Ziomecki. “In most cases at the time of sale our clients have an average 50% of the equity left in their homes.”
Written by Jason Oliva
