Contested Wills Expected To Become More Common
Disputes about wills and inheritances may be set to grow dramatically in the coming years. According to CBC News, a confluence of various factors is setting the stage for an increase in contested wills over the next two decades. With the savings of those born in the 1930s and 1940s set to be transferred to their Baby Boomer children, analysts say expectations on the part of potential heirs could soon lead to bitter family disputes. Additionally, rising personal debt levels and growing property prices have made inheritances a more important and contested issue for many families.
Transfer Of Wealth
Perhaps the main reason why inheritance disputes are expected to increase is simply because of the amount of wealth that is at stake. Approximately one trillion dollars is expected to be transferred from people who were born in the 1930s and ’40s primarily to their Baby Boomer children over the next couple decades. That amount will make it the largest such transfer of wealth in Canadian history.
Additionally, other factors are also contributing to even larger estates being transferred than many people had anticipated. Rising property values, for example, mean that people who have owned homes in major urban centres, such as Vancouver, for decades are now finding themselves in possession of real estate worth many times more than the original value.
