You have likely already taken significant steps to ensure a smooth transfer of wealth to your next of kin.
 
If you’ve read the first article in our “great wealth transfer” series, you’ll have seen how strategies such as using gifting allowances and placing assets in trusts could help to prepare your estate. 

Yet, without open conversations with your loved ones about an inheritance, even the most careful of plans could cause confusion, or worse, conflicts.
 
Continue reading to discover why discussing your intentions with your family is one of the more valuable acts you can perform to protect your legacy.

1. You set expectations for your beneficiaries

Your will might not always entirely align with the assumptions that your family members have made. This is particularly true with blended families , stepchildren, or estranged relatives, where relationships and expectations can be more complex.
 
Read more: 5 Helpful Estate Planning Tips When You Have a Big, Blended Family

Having an open conversation with your loved ones could allow you to explain your decisions and answer their questions, which may prove better than leaving them to interpret your wishes when you’re no longer here to clarify them.
 
Not only could this give everyone the chance to manage their expectations, but it could also help prevent potential inheritance disputes later.
 
A study from Canada Life found that 18% of UK adults have experienced a family dispute due to a lack of communication about inheritance planning [1].
 
Having these conversations now could allow you to significantly reduce any chances of disagreements arising in the future, especially when emotions are already heightened.
 
2. Discuss your wishes and talk about options for giving while living

Sitting down with your loved ones and discussing your wishes is incredibly beneficial, as it could help you determine how to best use your wealth while you’re still alive.

Your family might find that, rather than help with funding a one-off purchase, they’d prefer to create lasting memories with you, such as a family holiday.
 
This could allow you to see the effects of your generosity in person.

Should they prefer to receive some of your wealth as a gift while you’re still alive, this could help you reduce the value of your estate and could lower an eventual Inheritance Tax charge for your loved ones.

Regardless of their choices, a conversation now could ensure that you understand your family’s priorities.

Exploring all your options as a family can be a surprisingly uplifting part of estate planning.

3. Invite your adult children to your next financial planning meeting

If you wish for your adult children to understand exactly what you desire for your estate, it might be worth inviting them to your next financial planning meeting.
 
This could ensure your family is not left in the dark about how your estate will be divided once you pass away.
 
It could also be the perfect opportunity to share important documents, such as your will, any letters of wishes, or an “in case of emergency” plan.

Even if they aren’t involved in the decision-making just yet, knowing your intentions – and where everything is – could help to reduce stress later on.
 
Perhaps most valuably, bringing adult children into these conversations with your planner could allow them to ask questions and receive professional guidance.
 
If they’ve never managed large sums of money or encountered complex tax planning, these meetings could help them increase their knowledge and build confidence ahead of receiving an inheritance. It might also encourage them to seek advice for their own finances!

Get in touch

We could help you plan your estate and ensure a seamless transfer of wealth for your next of kin.

To find out more about how we can support you, email [email protected] or call us on 0800 048 0150.

Please note
The information contained in this article is based on the opinion of Titan Wealth Planning and does not constitute financial advice or a recommendation for any investment or retirement strategy.
All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning, tax planning, or will writing.

TWP 467