Never-discussing-later-life-planning-with-children

Families often struggle to have open and honest conversations about money. When you add the taboo of death to the topic, it can become even more challenging to speak to family members.

New research has found that 43% of parents never discuss later life planning with their children.

The research from Schroders Personal Wealth found a significant gap in financial planning regarding passing on assets in later life or on death.

78% of those surveyed had no estate planning strategy in place.

While 72% of over-60s want to pass on their wealth to their children when they die, only 13% said they would transfer wealth during their lifetime.

When it comes to passing on wealth to grandchildren, it’s a similar picture, with 53% of grandparents planning to do so on their death and only 12% during their lifetime.

One resounding finding from the research was a reluctance to discuss estate planning with children, with 65 of those surveyed saying they rarely or never discuss inheritance with their children.

For the 22% of over-60s who have an estate planning strategy in place, less than half admitted their children knew the details about what was in the plan.

Reasons for not chatting with children about plans include parents not wanting them to know their financial position or wanting kids to be financially independent.

Some said they don’t feel comfortable talking about money with their children.

Mark Duckworth, Chief Executive at Schroders Personal Wealth, said:

“Family conversations around managing wealth in old age and passing it onto the next generation have never been so important. Over £5.5 trillion will move hands between generations in the UK between now and 2055, peaking in 2035. Having a plan in place on how to handle this efficiently is crucial to pass wealth on smoothly, avoid family disputes and manage the tax bill.

“But our research in this report shows the difficulties many families have when it comes to talking about money. More needs to be done to encourage stronger engagement with long term financial planning. We believe that with some guidance and a plan in place, families can overcome the feelings of worry and start having the conversations they need to have to plan for their future.”