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:
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.