Take these vital steps to build your real estate legacy

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Rising property values across Canada in recent years presents an opportunity as that wealth is passed from one generation to the next with Canadians seeking advice to ensure that transfer is done efficiently and helps their heirs reap the benefits of these gains.

A study by CPA Canada found that more than $1-trillion of Canadians’ overall wealth is expected to be passed from one generation to the next over the coming years. Millennials and Gen Xers are expected to inherit a significant amount, with much of that wealth coming from skyrocketing property values.

This is the situation that’s playing out across Western Canada – whether it’s a principal residence, the family cabin, a vacation home or investment property, says Haleh Alexander, Regional Vice-President for British Columbia at National Bank Private Banking1859.

“It’s certainly been a very good and stable investment for many families,” she explains. “That’s because, over the last several years, we’ve seen real estate in Western Canada perform very well.”

Real estate values have risen

Consider that if a couple purchased a single-family home in Vancouver at the average price of about $306,000 in the early 1990s and held onto it today, it’s likely now valued at more than $2-million, according to data from the Canada Mortgage and Housing Corp.

Homes outside of major cities have also risen in value in the last few years as demand remains strong. For example, the price of an average vacation home in Kelowna increased 89 per cent from 2015 to 2025 – from $430,000 to $814,000, notes a Coldwell Banker report.

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“It comes down to high demand and limited supply, and that’s unlikely to change materially even with the recent slowdown we are seeing in the market,” adds Jenny Siman, Head of Real Estate for Western Canada at National Bank.

“That tremendous growth in value, as a result, means that for many families real estate has been an incredible wealth-building story.”

Real estate and the generational gap

While Statistics Canada data shows that real estate accounts for more than half of the average Canadian family’s wealth, it’s generally concentrated among aging Canadians, including those in Western Canada, says Ms. Alexander.

In contrast, younger generations – millennials and Gen Zs – often struggle to buy a first home, facing rising costs in often already pricey market, she adds. What’s more, when they do purchase a home, they’re often carrying large mortgages. To that end, Statistics Canada notes that mortgages account for 75 per cent of household debt with the majority of those liabilities held among households aged 54 and under.

A desire to pass on real estate wealth

For high-net-worth clients in Western Canada with National Bank Private Banking 1859, this dichotomy between generational wealth in real estate weighs on their minds when outlining their estate and succession plans for family enterprises, says Ms. Siman.

In short, we often hear from our clients that they want their real estate assets to not only provide a foundation for their own financial security but also those of future generations, she adds.

As such, regular conversations around planning for the tax-efficient passing of properties, which includes financial structures for how those properties are held, including trusts or corporations, are commonplace between private banking advisors and these families, she explains.

“Good wealth advice involves drawing up a road map aligning these assets strategically with the family’s long-term goals, which often includes using them to provide future generation’s financial security,” says Ms. Alexander, a designated family enterprise advisor who works with ultra-high-net-worth, entrepreneurial families.

A solid plan can prevent disagreements

“You also want to do everything as much in advance as possible to reduce risks –including, most notably, disputes among family members that can happen down the road due to potential mismanagement and miscommunication,” says Ms. Alexander.

Indeed, disputes can arise over valued family assets like cabins and even bricks-and-mortar business assets when estate and succession plans are poorly devised.

Ms. Alexander often facilitates meetings with parents and adult children to avoid future problems. These involve discussions about values and goals to shed light on, for example, who might be interested in inheriting the family cabin, or who might lead the family business.

In instances where all adult children have an interest, plans must be made around joint ownership and taxes once these assets change ownership from one generation to the next.

“It’s about understanding the whole big picture,” Ms. Alexander adds. “We want to be sure that we’re developing the most tax-efficient approach for those assets for the maximum benefit of the families.”

Giving a financial helping hand

At the same time, many adult children face more pressing challenges with respect to real estate, given they are seeking a toehold in high-priced real estate markets with their first home purchase.

“It’s very difficult for them in markets like Vancouver, Kelowna, Victoria and Calgary,” notes Ms. Siman.

That assistance can be substantial, involving monetary gifts or loans worth hundreds of thousands of dollars just for a downpayment for an average home in Western Canada’s priciest markets, she says.

“We discuss what the goals are and then come up with solutions whereby the parents may provide capital today in a tax-efficient manner, so their children can begin their own real estate journey,” Ms. Siman explains.

Aging parents’ substantial wealth in real estate affords many solutions from leveraging the equity in their properties to provide a downpayment to downsizing their principal residence and using some of the proceeds to fund their adult children’s first home purchase.

“The big benefit of these real estate assets is that they afford families tremendous financial flexibility, especially when helping younger generations – whether that’s long-term wealth through the estate or helping them today with homeownership,” Ms. Siman says.

Expert advice is critical for families to understand the risks and rewards of each decision to determine the best solution to achieve their goals, she adds.

“Each families’ objectives may differ, so having a trusted, experienced advisor who can help them choose among diverse strategies to make the most of their real estate wealth really can alleviate a lot of the stress around these big decisions,” she says. “And that often results in them finding peace of mind, knowing they’re securing their financial well-being along with those of future generations.”

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Advertising feature produced by Globe Content Studio with National Bank. The Globe’s editorial department was not involved.