Is it time to talk to your family about money?

Being open about wealth and discussing matters with those close to you can seem a step too far for many families. However, these days family finances can often be closely intertwined. The rise of the ‘Bank of Mum and Dad’ has shown that many parents and grandparents want to pass on wealth during their lifetimes, rather than waiting until they die.

For the older generation, talking to us about big financial decisions such as whether to downsize or remortgage, how much support to give (grand)children towards their education or the deposit for a property, can help ensure the right financial plans are in place to safeguard each generation’s financial interests.

Overcoming the taboos

It’s not uncommon even today for married couples not to know how much money their spouse earns. Wealthy parents can sometimes shy away from letting their children know too much about their wealth, in an effort to prevent them becoming complacent about what they might inherit in the years to come and losing their work ethic. Naturally older people do not always want to dwell too much on the future, finding it difficult and distressing to raise issues like death and inheritance with their loved ones.

However, discussing wealth matters with your family and your financial adviser can help establish priorities, clarify goals and ensure that plans are put in place to support each generation according to their financial needs.

We are increasingly being asked to help plan family wealth holistically, not least because we offer sound practical advice in an objective way. If you would like us to help your family, then please do get in touch.