A treasure map, a vampire statue, and Paul Newman's toothbrush are among the unconventional items left in Wills, according to a recent survey of 2,000 Canadian residents conducted by Danebury Research on behalf of legal technology firm, Estatesearch. The survey aimed to shed light on estate planning habits and the challenges associated with asset discovery.
Jonathan Upton, Director of Estatesearch, commented on the findings: "While these unorthodox items may intrigue beneficiaries, our goal is to eliminate surprises regarding the financial assets of an estate." The company has launched its Financial Profile Service in Canada to assist lawyers in identifying the full scope of a person's estate, including traditional assets such as life insurance, workplace pensions, savings, and investments.
The study revealed that 29% of Canadians struggle to locate or are unaware of the whereabouts of their workplace pensions, with Quebec showing the highest percentage at nearly one-third. Additionally, 26% of respondents have not informed their next of kin about life insurance details, with the highest percentage found in Alberta at 35%.
Another significant finding is that only half of the respondents have a Will, and 20% of those acknowledge that it needs updating. This gap in estate planning can lead to unaccounted assets, resulting in additional legal costs, tax recalculations, or even estate disputes. Furthermore, only 55% of those with a Will had engaged a lawyer to draft it, and 28% of self-written Wills lacked proper witnessing.
Additional findings from the survey include:
- 21% of people can't easily locate registered savings and investment plans.
- 38% can't locate shareholder certificates or bonds.
- 25% can't locate life insurance policies.
- Residents of Quebec (55%) and British Columbia (54%) are most likely to have a Will, whereas those in Alberta are the least likely (44%).
- Younger individuals (18-24 years) are less likely to have a Will (40%), compared to those aged 55-64 (57%) and over 65 (76%).
- Only 19% of 18-24 year olds have up-to-date Wills, compared to 35% of 55-64 year olds and 53% of those over 65.
- There is a gender disparity, with 58% of men having a Will compared to 43% of women.
- 40% of those who used a lawyer expect periodic updates on contact details, and 59% expect the lawyer to contact the Executor or Next of Kin upon their passing.
- 34% of respondents own digital assets, yet 51% haven't considered them in estate planning.
The survey's whimsical question about unusual inheritances yielded additional quirky responses, including a cigarette lighter, a stuffed baby seal, a jeweler's anvil, and a dog collar. Upton noted that while these examples are lighthearted, they underscore the real challenges faced by families and executors in identifying and locating the assets and Wills of the deceased.
With approximately 1.8 million unclaimed bank balances worth $678 million in Canada, the need for thorough asset and liability searches is evident. Estatesearch's services help lawyers obtain a comprehensive picture of an estate, ensuring rightful distribution to beneficiaries. The company is also committed to raising awareness about these challenges within the financial industry and developing technology to improve outcomes for vulnerable individuals.
The results of this research will be used to educate estate industry professionals about the challenges and available solutions for due diligence in identifying estate assets. For further information, please visit: https://www.estatesearch.ca.
