You’re confident your heirs can do the job, but are they ready?

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Handing over the keys to a car is a big responsibility, but so is handing over the keys to your wealth.

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Just because someone has reached legal driving age doesn’t mean they’re ready to safely navigate the roads, just as inheriting wealth doesn’t automatically mean someone is equipped to manage it wisely.

For those who are new or less involved in their family’s wealth planning, here’s a quick analogy: Most of us rush to get our driver’s licence as soon as we’re legally able. Some study hard before their road test; others wing it, fail a few times, yet still eventually pass. There will always be those who play it extra safe, keeping their hands at 10 and two, following every rule to the letter.

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But over time, most drivers get too comfortable and even lazy. Maybe you start driving with only one hand or start steering with your knees at times. That’s a risk. It might not seem like a big deal at the time until something goes wrong. Bad habits add up, and if you are not paying attention, you won’t notice when conditions have changed and there’s danger ahead.

Managing wealth is the same. Without regular maintenance such as estate planning, financial reviews and risk management, it’s easy to develop blind spots. Small missteps compound over time, and by the time trouble appears, it may be too late to course correct.

Life changes and so do our financial needs. A two-seater sports car might be the dream when you start out. But as your family grows, you upgrade to an SUV for safety and practicality. Some may opt for a hybrid or a luxury model, but, ultimately, it’s still a vehicle chosen to meet the needs of their loved ones.

Now consider ride-share services or bike rentals. They’re convenient and cost-effective for getting from point A to point B, but they’re not personalized, and they don’t always take you where you truly need to go.

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The same goes for one-size-fits-all wealth strategies. They may work in the short term, but may not be your best long-term solution as your needs and responsibilities change.

More money, more responsibility

Just because someone can afford any car they want doesn’t mean they’re a skilled driver. There’s a reason we have different licences for personal vehicles versus semi-trailers — some things require more expertise.

Yet, when it comes to wealth, many assume they (or their heirs) can handle complex financial decisions without proper knowledge or training.

Wealth isn’t just a privilege; it’s a responsibility. And without the right preparation, it can quickly become a burden.

Many parents already feel like underpaid Uber drivers, constantly putting others first while neglecting their own needs, savings and financial security. Wealth management should prevent that cycle, not reinforce it.

Owning a car also requires upkeep: checking the tires, changing the oil, replacing the brakes, etc. Just because you inherit a high-end vehicle doesn’t mean you’re automatically a great driver.

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The same applies to wealth. A strong financial plan isn’t a one-time setup; it requires routine check-ins, financial reviews and ongoing adjustments to keep things running smoothly.

And just like putting on a seatbelt doesn’t guarantee survival in an accident, financial planning doesn’t eliminate all risks. But it does increase your chances of long-term success.

Having the right safeguards — such as adequate insurance, estate planning, and a structured financial strategy  — helps ensure that wealth remains a tool for security and opportunity, rather than a source of stress and uncertainty.

Experience matters

Imagine sitting in the passenger seat while a nervous driver grips the wheel, completely reliant on their phone to navigate. Would you feel safe? Probably not. So why would you entrust your life’s savings to someone without the experience, planning or guidance to navigate financial risks?

If this article gets just one family talking, helps one person prepare or encourages someone to put the right financial structures in place, then it has served its purpose. Wealth is more than just money; it’s a legacy. Let’s make sure we pass it on with the wisdom and preparation it deserves.

Stephanie Woo, CIM, FMA, is a senior portfolio manager and wealth adviser at RBC Dominion Securities Inc.

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