Canadian Boomers and the Rise of “Giving with Warm Hands”

This week, I thought we’d take a brief detour from the usual market talk and “Trumpanomics” to explore a topic that has become increasingly relevant in our conversations with our families – gifting assets while living or what’s often referred to as “giving with warm hands”.

It’s a timely discussion. Between now and 2026, an estimated $1 trillion will transfer between Canadian baby boomers to their heirs.

One of the most common ways we're seeing this play out is in helping adult children buy their first home – a significant act of support in today’s real estate climate or contributing to educational costs for grandchildren. With no gift tax in Canada and zero taxation on primary residences, these early transfers can be financially rewarding.

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Why Now?

The motivations behind this shift are generally both emotional and practical:

• Life is long, and timing matters: With many boomers living well into their 80s and 90s, there’s a growing realization that a traditional inheritance may come too late to be truly impactful. Helping a child with a down payment at 35 might do more good than handing them a windfall at 65.
• The economics have changed: Boomers often built wealth through affordable housing markets and steady job opportunities. Today’s young adults face very different financial headwinds. Early support can be a powerful leg-up in a challenging environment.
• Tax efficiency: While Canada doesn’t currently have a gift tax, there are strategic implications to consider. Cash gifts don’t need to be reported, although disposing of assets to make the gift could have tax implications, which you need to be aware of. Also, transferring ownership of real estate or business assets early can simplify estate administration and reduce complications later.
• Emotional return: Many clients find it deeply rewarding to see the effects of their generosity firsthand, whether it's witnessing the joy of homeownership, a grandchild’s graduation, or even helping fund a once-in-a-lifetime trip.

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Planning is Key

Of course, gifting should never be done on impulse. A solid financial plan is essential. Those considering lifetime gifts should first ensure their own retirement and healthcare needs are looked after. From there, planning gifts in a tax-efficient and structured way, perhaps in coordination with estate or business succession strategies, can maximize both the impact and peace of mind.

Keep in mind, there’s no “right” age to begin gifting. For some, it aligns with a significant birthday, a liquidity event, or even a health scare. For others, it begins organically as part of helping adult children navigate today’s economic challenges.

But the core idea remains the same: giving while living allows you to take part in your family’s future today. In a world where both financial and emotional returns matter, that’s a trend worth talking about.