One of the more surprising moments in estate planning often happens when families see the final numbers. We sit down, walk through the plan, and at some point it becomes clear:
“If everything continues as expected, our children may inherit a significant amount of money one day.”
Sometimes, that number is larger than expected. In some cases, it may be millions of dollars.
Then comes the second realization.
“They may not receive it until they are in their 60s.”
By then, their mortgage may already be paid off. Their children may be grown. The busiest, most expensive, most stretched years of life may already be behind them.
And that raises an important question:
If you are fortunate enough to leave a meaningful inheritance someday, should you consider giving with a warm hand today?
The Timing of a Gift Can Matter
For many adult children, the need is not theoretical.
They may be trying to buy their first home. They may be raising young children while juggling childcare costs, sports, school expenses, and the rising cost of everyday life. They may be doing okay, but a little help now could make a very real difference.
A future inheritance can be appreciated.
A well-timed gift can be life-changing.
That does not mean every family should start transferring money tomorrow. It means the conversation is worth having.
Gifting can look different from family to family. For some, it may mean helping an adult child with a home purchase. For others, it may mean providing modest monthly support during a particularly expensive season of life. It could mean contributing to a grandchild’s RESP each year and helping capture available government grants.
There is no one-size-fits-all answer.
But there are three important questions to ask, and the order matters.
- Can You Afford to Gift Today?
This is where the math matters.
Before making a gift, you need to understand your own financial picture. That includes your retirement income, tax situation, healthcare needs, lifestyle goals, future expenses, and the kind of flexibility you want to preserve.
Generosity is wonderful.
Generosity that creates stress, uncertainty, or financial risk later is not the goal.
A good financial plan should help answer questions such as:
“How much can we give without compromising our own future?”
“Could we make this gift once, annually, or monthly?”
“What happens if markets are down?”
“What if we live longer than expected?”
“What if care costs rise?”
The goal is not to give until it hurts.
The goal is to give from a place of confidence.
When the plan says, “Yes, this is sustainable,” families can often give with far more peace of mind.
- Should You Gift Today?
This question is more personal.
And it requires something spreadsheets cannot fully answer.
You need to know your children.
Money changes things. Sometimes for the better. Sometimes not.
Would a gift reduce stress, open doors, and strengthen their family? Or could it create dependence, entitlement, or tension between siblings?
For one child, help with a down payment may be life-changing. For another, a large gift may not be helpful if they are not ready to manage it. Some parents also worry that helping too much could reduce ambition or independence.
That is a fair concern.
But support does not have to mean rescuing. A gift can be structured. It can be intentional. It can come with conversations, boundaries, and clarity.
Sometimes the best gift is not just money.
It is money paired with wisdom.
That is where family values matter. What are you trying to support? Stability? Education? Opportunity? Reduced stress? A first home? A stronger start for the next generation?
The “why” matters just as much as the “how much.”
- How Should You Gift?
Once you have determined that you can afford to gift, and that gifting makes sense for your family, the mechanics matter.
Should it be a lump sum?
A monthly amount?
A loan?
A gift toward a home?
A contribution to a grandchild’s RESP?
Should gifts be equal between children now, or should differences be accounted for later in the estate plan?
In Canada, cash gifts to adult children are generally not taxable to the child. But that does not mean every gift is simple. There may be tax consequences if you sell investments to fund the gift. There may be family law considerations. There may be estate equalization issues. And if money is being gifted to grandchildren or invested for minors, attribution rules and account structure can matter.
So the best approach is rarely, “Just transfer the money.”
The better approach is:
“Let’s design the gift.”
What is the purpose?
What is the amount?
Is it fair?
Is it sustainable?
Is it documented?
Does it fit into the broader estate and financial plan?
Done well, gifting can reduce pressure, create opportunity, and allow parents or grandparents to see the impact of their wealth during their lifetime.
And that may be the most meaningful part.
A Thoughtful Gift Can Change the Story
An inheritance received at age 62 may be appreciated.
But a thoughtful gift at 32, 38, or 45?
That can change the trajectory of a family.
It may help someone buy a home sooner. It may reduce debt. It may give grandchildren opportunities. It may ease pressure during the years when life is full, expensive, and moving fast.
So if your estate plan suggests that your children are likely to receive a significant inheritance one day, it may be worth asking:
Would some of that money do more good today?
Not recklessly.
Not emotionally.
Not without a plan.
But thoughtfully, intentionally, and with a warm hand.
If this is a conversation you have been thinking about, we would be happy to help you explore what is possible, what is prudent, and what fits your family.
Bryan Deviney is a Senior Financial Advisor with CI Assante Wealth Management Ltd. The opinions expressed are those of the author and not necessarily those of CI Assante Wealth Management Ltd. Please contact him at 416.216.6500 or visit www.bryandeviney.com to discuss your particular circumstances prior to acting on the information above. CI Assante Wealth Management Ltd. is a Member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization.
The case study mentioned in this presentation is provided for illustrative purposes only and does not represent an actual client or an actual client’s experience, but rather is meant to provide an example of our process and methodology. The results portrayed is not representative of all of our clients’ experiences.
