Canada is currently experiencing an unprecedented transfer of wealth, a financial shift that experts warn could reshape the nation’s social and economic landscape. Between 2023 and 2026, an estimated $1 trillion is expected to move from aging baby boomers to their millennial and Generation X children, according to the Chartered Professional Accountants of Canada. This massive inheritance, primarily driven by soaring real estate values and long-term investments, is reshaping housing markets, widening wealth gaps, and influencing economic mobility.
Keith Willoughby, dean of the Edwards School of Business at the University of Saskatchewan, describes this shift as a “trillion-dollar tsunami,” an event of historic proportions. The impact is particularly noticeable in major urban centers like Toronto and Vancouver, where home prices have surged, but it’s also influencing provinces like Saskatchewan. Many of these newly inherited funds are flowing directly back into real estate, as younger generations use their family wealth to enter an increasingly unaffordable housing market. In 2024, 31 percent of first-time homebuyers in Canada received financial help from family members—an increase from 20 percent in 2015, according to CIBC. The size of these financial gifts has also skyrocketed, with the average parental contribution rising to $115,000 in 2024, nearly double the $66,000 recorded in 2019.
While this wealth transfer is making homeownership more accessible for some, it is also reinforcing long-standing economic divides. A Statistics Canada study found that individuals born in the 1990s whose parents owned homes were twice as likely to become homeowners themselves compared to those whose parents did not. This disparity has sparked concerns about fairness, as financial success is increasingly dictated by inheritance rather than personal effort or career achievements. Maclean’s journalist Katrina Onstad refers to this phenomenon as “status fog,” where inherited wealth distorts the traditional link between lifestyle and earned income, making it difficult to assess financial standing based on a person’s occupation alone.
The impact extends beyond cities and into rural communities, particularly in provinces like Saskatchewan, where rising farmland values are reshaping family legacies. The average value per acre of farmland in Saskatchewan has nearly doubled since 2016, bringing the estimated worth of a family farm to over $3 million. This has created tension among farm owners and their heirs, as families debate whether to continue agricultural traditions or sell their land for significant financial gain. Donovan Tofin, a wealth management advisor for farmers, notes that where past generations saw farming as a struggle, today’s inheritors recognize it as an opportunity for wealth accumulation.
However, not all Canadians are beneficiaries of this financial shift. Many newcomers and Indigenous communities, who were historically excluded from homeownership and economic participation due to colonial policies, have little wealth to pass down. Jason Bird, a business professor at First Nations University of Canada, points out that Indigenous communities often measure wealth differently, emphasizing generosity and communal support rather than individual financial gains. Without the ability to inherit property or capital, these groups remain largely outside the cycle of generational wealth accumulation.
As inheritances grow, some Canadians are choosing to redistribute their newfound wealth through charitable giving. Organizations like the South Saskatchewan Community Foundation are helping individuals create long-term charitable funds, while groups such as Resource Movement educate young inheritors on wealth redistribution strategies. Jess Klassen, a University of Saskatchewan medical student who received a $300,000 inheritance, is among those reconsidering how much wealth is truly necessary and exploring ways to give back.
Unlike other G7 nations, Canada does not have an inheritance tax, meaning wealth transfers remain largely untaxed. Willoughby suggests that Canada should study inheritance tax models in other countries to explore whether a similar system could address wealth inequality. However, he acknowledges that any changes to taxation policy would require a fundamental shift in how Canada approaches wealth and taxation.
With over a trillion dollars in assets changing hands in just a few years, Canada’s largest-ever wealth transfer is already reshaping financial realities for millions. Whether this shift leads to increased prosperity for all or a widening economic divide will depend on how society, policymakers, and inheritors themselves choose to navigate this historic moment.