The pros and cons of doling out inheritance with a warm hand

Watching the next generation benefit from their inheritance can be a joy, but the process comes with risks

As Canadian families prepare to transfer more than $1 trillion in wealth over the coming decades, many are rethinking when, and how, that wealth should be passed on. A recent Financial Post article explores the growing trend of giving “with a warm hand,” where parents and grandparents provide financial support earlier in life to help the next generation navigate rising housing costs and limited savings capacity. While tools like the FHSA, TFSA and RRSP offer tax-efficient opportunities to support this approach, the decision introduces important trade-offs around control, timing, and long-term financial security.

In the article, Greg Moore, Partner and Portfolio Manager, offers a multi-generational perspective shaped by his work with ultra-high-net-worth families. He highlights that the core challenge extends beyond financial planning, it lies in preparing the next generation to manage wealth responsibly. Families are increasingly concerned with how to foster financial literacy and stewardship without creating entitlement or diminishing motivation. Moore also points to today’s environment, where social media and risk-driven behaviours can influence investment decisions, reinforcing the need for thoughtful guidance and structured learning.

Greg emphasizes the importance of intentional wealth transfer strategies that balance opportunity with accountability. This can include setting clear expectations, introducing controlled exposure to risk, and embedding financial education into the process. Ultimately, effective wealth transfer is not a one-time transaction but an ongoing, integrated effort, one that aligns family values, prepares future decision-makers, and supports long-term legacy preservation.

Read the full article on the Financial Post website.