Holiday Reflections: Generosity, Gifting, and Building a Family Legacy in 2025
As the year winds down and the holiday spirit of generosity fills the air, many Canadians are reflecting on how to give back: both to their loved ones and their communities. For families in the upper-middle class, this season often sparks conversations about gifting, charitable giving, and preserving a family legacy. Financial advisors play a key role in turning these values into action by providing long-term investment planning, thoughtful portfolio management, and estate planning services that support clients’ generosity and legacy goals. This special holiday article explores how advisors and their clients can embrace year-end generosity in a financially prudent way, balancing warm narrative with analytical insight into current trends.
The Season of Giving and Financial Well-Being
The holidays have long been known as the season of giving, and data shows Canadians truly live up to that reputation. A significant portion of charitable donations occur in the final weeks of the year: 35% of all annual donations happen in December, with 10% in just the last three days of the month [1]. This year-end generosity is driven by both the spirit of the season and practical timing (many donors rush to meet the December 31 deadline for charitable tax credits). Advisors can capitalize on this natural generosity by guiding clients on how to give wisely and strategically.
While some gifts are spontaneous, such as a donation to a food bank or an impulsive contribution to a fundraiser, others are planned with care. In fact, giving generally falls on a spectrum from on-demand charitable giving (unplanned, reactive generosity) to strategic philanthropy (proactive giving with a long-term plan) [2][3]. Neither approach is “right” or “wrong,” but a strategic approach can yield a more meaningful impact. By mapping out a charitable giving plan that aligns with personal values and goals, individuals can create a lasting impact during their lifetime and beyond [4]. For example, instead of simply writing cheques each December, a family might establish a donor-advised fund or set a yearly charitable budget tied to their financial plan.
An advisor’s guidance is invaluable here: helping clients find the right balance in giving so that generosity today doesn’t compromise financial security tomorrow. It’s crucial that clients assess and prioritize their own financial needs (retirement income, emergency funds, etc.) before making significant gifts [5]. In other words, just as airlines remind us to secure our own oxygen mask first, advisors remind clients to secure their own long-term plan before gifting large portions of their wealth [6]. With a solid financial foundation in place, giving becomes not only heartfelt but also sustainable.
Gifting to Family: The Rise of “Giving While Living”
Beyond charity, family gifting often takes center stage during the holidays. Adult children and grandchildren may receive monetary gifts or transfers of assets as parents and grandparents share their wealth. In recent years, Canada has been witnessing what’s called the Great Wealth Transfer: an unprecedented flow of assets from the Baby Boomer generation to younger generations. In fact, over $1 trillion is expected to move from Canadian boomers to their Gen X and Millennial heirs between now and year-end 2026 [7]. This massive transfer isn’t happening only through wills and inheritances after death; increasingly, it’s happening now, while the elder generation is still alive.
A cultural shift is underway toward “giving while living,” where seniors proactively share wealth with their family during their lifetime [7]. Rather than leaving all assets in an estate, many older Canadians are choosing to gift some of their wealth earlier so they can witness the positive impact on their loved ones. Picture a retired couple helping their granddaughter with a down payment on her first home as a living inheritance, or a grandfather contributing to his grandchild’s education fund each year. These gestures bring immense joy and satisfaction: the giver gets to see the difference their money makes at a time it’s needed most [8]. As one popular saying goes, “You can’t take it with you,” and it seems many boomers agree, preferring to help family members now rather than posthumously.
Several factors drive this trend. Economic conditions, such as out-of-reach housing prices and the burden of student debt on young Canadians, motivate parents and grandparents to step in with financial help [9][10]. There are also tax and estate planning incentives: Canada does not have a gift tax, and giving assets during one’s lifetime can reduce the size of the estate and potentially minimize probate fees later [11]. By contributing to vehicles like a grandchild’s Registered Education Savings Plan (RESP) or helping a child max out their Tax-Free Savings Account (TFSA), benefactors can transfer wealth efficiently while also taking advantage of tax-advantaged accounts [11]. Some seniors also choose to distribute assets early to avoid future family conflicts, ensuring clarity and fairness in who gets what [12].
From a planning perspective, advisors should encourage open intergenerational conversations about these gifts. Transparency is key: discussing the intentions and implications of giving can prevent misunderstandings. Yet we know these talks aren’t always easy; speaking about money, inheritance, and death can be uncomfortable. Still, more families are realizing the importance of frank discussions, especially after the pandemic reminded everyone of life’s fragility [13]. Advisors can play the role of facilitator, arranging family meetings to talk through wealth transfer plans. In doing so, the advisor ensures that all parties understand the plan and that the next generation is prepared for the responsibilities of receiving wealth. This preparation is often lacking. According to an Ipsos poll, 61% of Canadians don’t feel knowledgeable about the estate process (like probate) and many are unaware of tools (like certain insurance policies) that can ease the tax burden on an estate [14]. By bringing heirs into the planning process early, advisors provide financial education and help set expectations. An added benefit for advisors: engaging the heirs can secure a relationship with them. Industry studies indicate that over 80% of inheritors may leave their parents’ financial advisor after receiving an inheritance if they have no prior relationship [15]. Clearly, involving the whole family in legacy planning is not just good practice for the client, but also vital for the advisor’s business continuity.
Strategic Philanthropy as Part of Your Legacy
Charitable giving is another pillar of legacy-building, especially relevant during the holidays. Many clients feel a pull to give back to society; whether out of gratitude, a desire to make an impact, or for faith and personal values. Here, advisors can shift the conversation from ad-hoc donations to strategic philanthropy. Rather than donating reactively (for example, responding to each charitable request or seasonal campaign), clients can benefit from a structured giving strategy [2][3]. Strategic philanthropy means establishing a plan for when, how, and to whom to give in a way that aligns with one’s values and long-term goals. This could involve setting up an annual gifting amount, focusing on specific causes that matter to the family, or even creating a private foundation or donor-advised fund for a more enduring legacy.
In Canada, the charitable sector is immense. In fact, Canada’s charitable and non-profit sector is the second-largest in the world by contribution to the economy [16]. With such a vibrant sector, there’s ample opportunity for families to make a difference. Advisors should educate clients on the tax advantages of charitable giving as well. The government encourages donations through tax credits: when a client donates to a registered charity, they receive a donation tax receipt that can generate a non-refundable tax credit worth a significant portion of the gift (generally up to 75% of their net income can be claimed as donations each year) [17]. For large gifts that exceed that limit, unused credits can be carried forward up to five years, and in the case of bequests (gifts made in a Will at death), the limit increases to 100% of the final year’s income [18]. In practical terms, this means charitable giving can be woven into financial plans not only to fulfill a client’s philanthropic wishes but also to optimize their tax situation.
Advisors might suggest donating appreciated assets like stocks rather than cash, which can be highly tax-efficient. For example, donating publicly traded securities allows the donor to avoid capital gains tax on the asset’s growth while still getting a tax receipt for the full market value of the gift [19][20]. Gifting stock that has grown a lot in value over the years to a charity yields a double benefit: the charity gets a larger gift (since no part went to taxes) and the donor gets a larger tax credit than if they had sold the stock and donated cash. These kinds of strategies underscore why planning is so important. A bit of forethought can significantly boost the impact of one’s generosity.
It’s also wise to incorporate charitable intentions into the estate plan. For clients with legacy goals, advisors may recommend instruments like donor-advised funds (DAFs) or setting up a private foundation if the client’s means and ambitions are considerable. Donor-advised funds, in particular, have grown popular as a way to create an enduring charitable legacy without the administrative burden of running a foundation. With a DAF, a donor can contribute money or assets now, get the tax deduction immediately, and then have the fund distribute to charities over time (often involving their children in the grant-making decisions). It’s an appealing way to connect family values across generations: parents can involve their kids in philanthropy, teaching them about causes and responsible giving [21]. Bringing heirs into charitable decisions (e.g., deciding as a family which charities to support each year) can be a powerful way to instill values and strengthen family bonds. As IG Private Wealth Management puts it, incorporating charitable giving into a comprehensive financial plan is a great way to connect family values across generations [21]. Indeed, philanthropy can become part of the family identity and legacy, alongside the transfer of financial wealth.
Integrating Generosity with Long-Term Planning
Whether gifting to family or donating to charity (or both), these acts of generosity should be integrated into a client’s long-term financial plan. Advisors approach this by taking a holistic view of the client’s balance sheet, cash flow needs, and goals for the future. A key question is: How much can you afford to give without jeopardizing your own retirement and lifestyle? The answer requires analysis of the client’s investments, income sources, and projected expenses. In 2025, many clients have been cautiously adjusting to a new economic environment. After a period of high inflation and rising interest rates in the early 2020s, the financial landscape in Canada has improved stability. Inflation is now back under control (around 2.2% year-over-year) and the Bank of Canada has eased interest rates down to a more neutral level (holding at 2.25% as of late 2025) [22][23]. This stability; a balance of steady growth and tame inflation; means fewer immediate economic shocks for clients and perhaps a bit more breathing room to focus on long-term plans rather than short-term crisis management. With the central bank signalling no further rate cuts or hikes for the near future [24][25], advisors and investors can plan with a degree of confidence in the economic backdrop. Portfolio strategies for retirees, for instance, can be calibrated knowing that interest rates are likely to remain steady, which affects bond yields, GIC rates, and income projections. A stable environment can also bolster clients’ confidence in giving. When people feel economically secure, they are often more comfortable being generous.
That said, integrating gifting into a financial plan requires careful scenario planning. Advisors might run projections to show a client, for example, “If you gift $50,000 to your children now, how does it impact the longevity of your retirement portfolio?” or “If you make a large charitable donation this year, what does it do to your tax bill and how does that feed back into your overall net worth in 10 years?” By quantifying these outcomes, advisors ensure that acts of kindness fit within sustainable financial parameters. Often, the exercise is reassuring: with proper planning, clients discover they can afford to give generously and still meet their own needs. In cases where trade-offs are needed (perhaps delaying retirement by a year in order to fund a grandchild’s education trust), those decisions can be made explicitly and with clarity.
Key considerations for balancing generosity with financial well-being include:
·Prioritize Core Needs First: Ensure your retirement income, healthcare needs, and emergency reserves are secure before making large gifts [6]. Peace of mind for your own future is the foundation for sustainable giving.
·Choose the Right Assets to Give: Determine whether to give cash, investments, or other assets. Donating appreciated securities or using registered accounts for family gifts (like contributing to a child’s RESP) can maximize tax benefits [19][11].
·Consider Timing: Decide between giving now versus later. Gifting during your lifetime lets you see the impact and may reduce future estate taxes, whereas bequests can be appropriate for leaving a legacy to charities or heirs who may not need funds yet [7][26].
·Formalize It in Your Estate Plan: Update your will and beneficiary designations to reflect any gifts made (or promised) and to integrate charitable bequests. This ensures no one is accidentally left out or double-counted, and it clarifies your intentions.
·Communicate with Family: If you plan to distribute assets to your children or other heirs, let them know your general intentions. Open communication can prevent future conflicts and help heirs plan accordingly [13]. It’s often wise to involve your financial advisor or estate lawyer in family meetings for guidance.
·Leverage Professional Advice: Work with a financial advisor, tax specialist, and estate lawyer as needed. Professionals can identify pitfalls and opportunities; for instance, they can help navigate the nuances of donating complex assets (like real estate or private company shares) or advise on life insurance strategies to cover estate liabilities.
By weaving generosity into the long-term plan through steps like these, clients can give with confidence. They’ll know that every gift, whether to a loved one or a charity, fits into a bigger picture that preserves their own financial stability and ultimate legacy wishes.
Empowering Advisors to Guide Legacy Planning
For financial advisors, helping clients with family gifting and legacy planning is deeply rewarding work, but it also adds complexity to their practice. Advisors not only need technical knowledge (tax rules, estate law basics, investment management) but also soft skills and bandwidth to handle multi-generational relationships and sensitive conversations. This is where support and resources for advisors become crucial. Many advisors are turning to coaching and professional development programs to sharpen their skills in these areas and to ensure their practice is structured to handle the evolving needs of clients. Here at East Coast Coaching, our mission is to help financial advisors work smarter to reduce their stress level, upgrade their businesses, and better satisfy clientele.
East Coast Coaching provides courses and one-on-one coaching that directly help advisors improve the planning and advisory experience they deliver to clients. For instance, ECC’s Strategic Coaching program is designed for established advisors looking to scale up their practice with smarter systems. This kind of coaching can help an advisor streamline their financial planning process and client experience. One advisor testimonial noted that ECC’s coaching helped “streamline our financial planning arc and client experience, creating a repeatable and branded process” [27]. In the context of legacy planning, having a repeatable process is invaluable. It means an advisor can consistently walk each client through important steps: from clarifying family values and legacy goals, to collaborating with estate attorneys, to scheduling regular check-ins on gifting plans. A structured approach ensures nothing falls through the cracks when managing long-term plans that might span decades and involve multiple family members.
The Sales Mastery Cohort focuses on communication and trust-building: core skills when discussing topics like inheritance or charitable legacies with clients and their families. Advisors must be adept at asking the right questions and handling delicate objections (for example, a client might worry “Will I have enough if I give this much away?” or “How do I talk to my children about my will?”). Training programs that build confidence in running these conversations can directly enhance the educational value advisors provide to clients [28]. East Coast Coaching emphasizes practical execution over theory; they turn decades of real-world financial industry experience into tools and systems that “move the needle” [28]. By learning proven structures, whether for time management or client communications, advisors free up time and mental energy to focus on what matters most: their clients’ goals and values. As ECC’s founder Stacy Arseneault puts it, he coaches advisors to achieve “structure, clarity, and systems that give you your time, confidence, and results back” [29]. For an advisor, having more time and confidence means they can be proactive in areas like legacy planning, rather than just reactive to daily market moves or urgent client calls.
Ultimately, the benefit of such professional development is passed on to clients. Advisors who invest in improving their practice are better equipped to educate and guide clients through complex financial decisions. They can comfortably coordinate with accountants and lawyers on an estate plan, set up multi-generational family meetings, or draft an Investment Policy Statement that includes charitable intent, all while still managing the core portfolio and financial plan effectively. The holiday season is a reminder that being an advisor today is about more than picking stocks or balancing portfolios; it’s about being a holistic guide through life’s biggest financial milestones. At East Coast Coaching, we recognize this and have designed our offerings to help advisors deliver comprehensive, value-added advice that truly resonates with clients’ heartfelt priorities.
Conclusion: Balancing Heart and Strategy
In this holiday reflection, we see that generosity and prudent planning are two sides of the same coin. Canadians have big hearts: giving to family and charity in record amounts, and with the right planning, these acts of kindness can be done in a way that secures both the giver’s peace of mind and the recipient’s future. For clients, it’s about aligning money with meaning: using the wealth they’ve built to support the people and causes they love, without jeopardizing their own long-term security. For advisors, it’s about expanding the conversation beyond investments to include legacy, values, and family dynamics, all backed by sound financial strategies.
As 2025 draws to a close, the economic outlook is stable and the spirit of giving is alive and well. It’s an ideal time for advisors and clients to sit together by the (perhaps virtual) fireside and talk about more than portfolios – to talk about what legacy they want to create. By embracing both the narrative (the stories, the motivations, the human side) and the analytical (the numbers, the trends, the techniques), we can ensure this season’s generosity leaves a lasting legacy for generations to come. Happy holidays, and here’s to building legacies filled with meaning and generosity.
Sometimes the best gift to those you love involves an investment in yourself. Treat yourself and your business this Christmas by exploring East Coast Coaching's online courses or book a one-on-one strategic coaching session to find clarity and direction in the new year. Visit our homepage to learn more: https://eastcoastcoaching.com/?utm_source=blog&utm_medium=post&utm_campaign=ECC2025
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