New research from Investors Group shows that many Canadians have a tendency to avoid discussions about money with aging parents as long as they can.

A recent survey conducted by Decima Research for Investors Group found that nearly half of Canadians under 45 say they have not talked with their parents about their funeral plans or leaving a legacy for young generations in the family.

Only 27% of adult Canadians whose parents are still living have met with their parents and siblings to discuss the family estate despite the fact that many respondents recognized that taxes and competing family interests could affect whether they receive a good share of what their parents wish to pass on.

The research shows over 90% of Canadians say they were well taught by their parents how to handle money, but nearly half — 43% — admit they haven’t had a meeting with their parents to discuss funeral plans. As well, 47% have not discussed the passing of a legacy to children or grandchildren with their parents.

“Open lines of communication are as fundamental to financial planning as pie charts and calculators,” says Debbie Ammeter, vp of advanced financial planning at Investors Group. “The importance of communication to financial planning can only be taught by example and the research shows this isn’t happening.”

When discussions about the various elements of estate planning do happen, they can be difficult. Nearly one in three said they had difficulty discussing estate plans with their parents and one in 10 said the discussion was very difficult.

“People shy away from the difficult topics of death and money until they feel some urgency to have those discussions, typically when their parents are much older,” says Ammeter. “Funeral plans may best represent the challenges when these two topics come together.”

The majority of Canadians — 60% — believe they will inherit some money from their parents and 41% believe it will form some part of their retirement savings. However, approximately one in 10 believe poor estate planning is a threat to receiving a reasonable share of their parents’ estate.

The survey results are based on a national telephone survey by Decima Research conducted with a representative sample of 1000 Canadians (18 years and older) between May 19th and 22nd, 2005. A sample of this size will provide results that can be considered accurate for the population overall to within plus or minus 3.1%, 19 times out of 20.