How to start the conversation around your inheritance and future security

Protect Your Assets Through Conversation

Often, it is seen as taboo to talk about what inheritance you are likely to receive, as it is human nature to avoid uncomfortable situations.

Parents are sometimes oversharers when it comes to talking about their own future health and care needs, but not so much when it comes to finances. Before the conversation starts between parents and children, it is good to first think about where each side is opening up from, as this may save you from the awkward silences.

Children often want to know where they stand so that they can make financial plans for their future, but they don’t want to come across as greedy and presumptive. Whereas, parents do not want their children to be brought up as entitled or to lack the motivation to gain good, steady careers and save money if they think they will be handed money on a plate when they pass away.

One thing that can be taken away from the conversation by allowing open conversations to take place is that the parents can help educate their children on planning for their future and how they also need to consider inheritance planning for themselves if they have their own children in the future.

Whilst some financial matters are hard to plan for, such as how much money will be spent on the parent’s care fees in the future, etc., what can be planned for is what happens to any remaining money that exists when a person passes away. The conversation may lead to parents thinking about their own children’s individual circumstances. It may be that one child is more well off than the other; this could cause the parent to leave more funds to the person who is less well off. Alternatively, it may go in the other direction. If a parent thinks that one child is less well off because they have wasted away more assets, then they may be more inclined to leave more funds to the child with more assets who has been more frugal with money.

So why not start the conversation with your family by simply asking them if they have got their financial affairs in order by putting in place a will?

In order to document what you would like to happen with your assets when you pass away, it is important to put a will in place. A will documents what shares your estate is to be divided up and to whom. Not only is it important for parents to put this in place so that their children are provided for, but it is equally important for the children to then put in place a will. A person has to be aged 18 to put in place a will.

If you know that you are due to inherit money from your parents in the future, you should also execute a will. A will does not just cover the assets that you hold at the time of signing your will; it also covers any assets that you gain in the future before you pass away. It is crucial that you also consider what happens to your estate, as you would not want your parent’s inheritance, which they have worked hard to pass down to you, to pass to someone that you would not want it to.
After you've had the tough but necessary conversation with your family, please contact one of our will specialists. You can either contact us by completing the online questionnaire here, or call 01206 217609, or email leah.woodlee@birkettlong.co.uk.