<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=192437601262779&amp;ev=PageView&amp;noscript=1">

The Importance of Discussing Wealth Transfers

Feb 28, 2023 3:26:07 PM The MacMillan Estate Planning Team Estate Planning, inheritance, MacMillan Estate Planning, Wealth Transfers, Wealth, Affluence

There are more people over the age of 65 now than ever before, with many people living past 100 years of age. Despite this, there is a disconnect between them and their families about how wealth will be transferred to the next generation. A study conducted by Strategic Insights Projects found that thirty-two per cent of wealth holders are worried about how their heirs will handle their inheritance, yet nearly 20 per cent of respondents have not involved their children to their financial advisor or shared their wealth transfer plans.

This lack of communication can lead family members to misunderstand or misconstrue the purpose and reasoning behind wealth transfer decisions. This can be avoided with proactive communication and the right approach. After all, a wealth transfer isn’t just a technical problem for your estate planner to handle and manage. Proactive conversations concerning an impending wealth transfer provide much needed clarity for those who are in line to inherit wealth and can be beneficial for long-term family dynamics.

While many may feel as though discussing estate planning with loved ones can feel uncomfortable, it’s important to effectively communicate to the next generation who will be charged with continuing and upholding the legacy and wealth you will leave behind. It can also help to alleviate any false assumptions held by those who will, or won’t, be inheriting any wealth, and allow for proper planning for all parties involved.

We know that every family dynamic is distinct, and just as we customize estate plans to the unique needs and circumstances of each of our clients, we don’t use a catch-all approach to have what might be difficult conversations with loved ones. However, some general tips to help you navigate these conversations include:

  1. Begin the conversation by talking about the legacy you want to leave behind and what is most important to you.
  2. Be transparent about what you are, or aren’t, leaving to your loved ones.
  3. Introduce your loved ones to your estate planning team so they know who they can refer to with questions they have that you may be unable to answer, or when it comes time for the wealth transfer to take place.
  4. If a portion of your estate is being bequeathed to a charity or charitable endeavour, you may want to explain why this particular initiative is important to you. This may encourage your loved ones to continue your charitable giving with this organization in the future.

Our team at MacMillan Estate Planning can help you create a strategy to navigate these important conversations. Our team is dedicated to knowing our clients on a deeper, more personal level and act as true stewards of our clients’ legacies and significance. To learn more or to talk to an estate planning professional, contact us today.

At MacMillan Estate Planning, our team of professional trust and estate practitioners, chartered accountants, financial planners, and legal professionals look forward to assisting you with the design of your estate plan and will ensure you build, protect, and enjoy your wealth. The information provided is general and may not be suited to your objectives or sufficient to ensure the protection of you and your family. You should not act on this information without providing MacMillan Estate Planning with the opportunity to ensure that it is suitable for your unique situation.

We are here to help
Ask Us a Question

Posts by Topic

see all