- Second volume of the digital magazine explores ways to
establish a family culture of stewardship and philanthropy
- Offers guidance on managing and using this wealth to support
the causes important to the family
TORONTO, Nov. 13, 2020 /CNW/ - Anticipating a
$1 trillion transfer of wealth over
the next decade – the largest 10-year wealth transfer in Canadian
history (see "A Sudden Windfall", BMO Wealth Insights, 2018) – BMO
Private Wealth is helping families preserve and advance their
family's legacy by establishing a culture of stewardship and
philanthropy for the next generation.
Articles from the second volume of the BMO Wealth Insights
magazine explore how families can engage their children in
charitable giving and philanthropy. In addition to advice on how to
prepare heirs for the responsibilities involved with inheriting
wealth, BMO Private Wealth provides guidance for teaching children
how to use this wealth to improve the lives of others, while
supporting the causes important to their family.
"When discussing successful transfers of wealth, it is important
for families to consider the responsibilities involved with
inheriting the family legacy and how to build a framework that will
advance the family's philanthropic commitments," said Marvi Ricker, Vice-President and Director,
Philanthropic Advisory Services (Strategic Granting), BMO Private
Wealth. "Building an enduring legacy starts with establishing and
maintaining a family culture of wealth stewardship and
philanthropy. BMO Private Wealth's team of professionals has the
experience and resources to help Canadians and their families
identify the causes that align with their values and develop
strategies to make a meaningful impact now and for future
generations."
Tips for teaching children the role of wealth
stewardship
Cultivating a lasting culture of wealth stewardship and
philanthropy begins with engaging the next generation in charitable
giving habits that will define how they will steward their time and
wealth. BMO Private Wealth encourages Canadians and their families
to consider these suggested strategies when preparing their
children and grandchildren for a lifetime of charitable giving:
- Look for teachable moments: Whether it is a discussion
at the dinner table, volunteering at a shelter or attending a
granting meeting, there are plenty of opportunities to introduce
and explain the value of philanthropy and charity to children of
all ages. If possible, try teaching children at an early age that
one of the most precious commodities a family can give is their
time. Encouraging children to volunteer their time can help build
their self-esteem and confidence, while exposing them to their
community and its diversity.
- Create a legacy account: Consider allocating a portion
of the household budget towards specific charitable causes by
opening a designated bank account or establishing a donor-advised
fund. Demonstrating the cumulative potential of small sacrifices
and how it can amount to a significant contribution in the future
can encourage children to adopt these habits and continue these
traditions as they become financially independent.
- Encourage children to take initiative in the process of
family philanthropy: After witnessing the potential of
dedicating the family's time and resources to a cause, children may
be interested in choosing a worthwhile initiative of their own.
Asking children to research and submit a formal proposal or a
presentation on the charities they believe will benefit from their
support will enrichen the child's personal experience and
connection to the giving process, as well as encourage future
giving.
"Building an enduring culture of wealth stewardship and
philanthropy starts with habits. By encouraging family members of
all ages to participate in acts of charitable giving and
responsible wealth management, these habits will develop into a
framework of philanthropic family traditions and values that can be
passed down to succeeding generations," said Lydia Potocnik, Vice-President and National
Director, Philanthropic Advisory Services, BMO Private Wealth.
To download a copy of BMO Wealth Insights, please visit
https://privatewealth.bmo.com/getimage.asp?content_id=87401
BMO Private Wealth is a brand name for a business group
consisting of Bank of Montreal and
certain of its affiliates in providing private wealth management
products and services. Not all products and services are offered by
all legal entities within BMO Private Wealth. Banking services are
offered through Bank of Montreal.
Investment management, wealth planning, tax planning, philanthropy
planning services are offered through BMO Nesbitt Burns Inc. and
BMO Private Investment Counsel Inc. Estate, trust, and custodial
services are offered through BMO Trust Company. BMO Private Wealth
legal entities do not offer tax advice. BMO Trust Company and BMO
Bank of Montreal are Members of
CDIC. ® Registered trademark of Bank of Montreal, used under license.
® Registered trademark of Bank of Montreal, used under licence.
About BMO Financial Group
Serving customers for
200 years and counting, BMO is a highly diversified financial
services provider - the 8th largest bank, by assets, in
North America. With total assets
of $974 billion as of July 31, 2020, and a team of diverse and highly
engaged employees, BMO provides a broad range of personal and
commercial banking, wealth management and investment banking
products and services to more than 12 million customers and
conducts business through three operating groups: Personal and
Commercial Banking, BMO Wealth Management and BMO Capital
Markets.
SOURCE BMO Financial Group