How to talk to your adult children about financial assets
In the course of their lives, almost everyone will have to face a difficult conversation. It’s not always easy to talk with your adult kids about your assets. Some people believe their children aren’t interested in their financial situation. Some are afraid that their children will be disappointed if they discuss their financial situation. It is important to discuss your financial situation with your adult children. They may not know what you want for your estate or that you require help. Here’s how to start.
Have the First Conversation ASAP
The sooner you begin talking with your children about your financial assets, the easier it will be to manage. Have the First Conversation ASAP
The earlier you begin to talk to your children about your financial assets the easier it will be to manage the situation. Whether it’s letting them know that you have enough available to cover you in retirement – which can be a relief for worry-prone kids – or letting them know what their inheritance may look like, getting the ball rolling is critical.
Even if you don’t have many financial assets, letting your children know now instead of later is wise. So they can understand your current situation and help you secure your future. You don’t want your child to be the executor of an estate if they’re not comfortable with it. You won’t find out if someone doesn’t want to be the executor of your estate until you speak about it. Your children may not be aware of your final wishes if you have never discussed it. If you have plans about where your financial assets should go after your passing, telling them now gets everyone on the same page.
Ultimately, these aren’t topics best discussed during an ongoing crisis. Make plans to sit down with your children as soon as you can to get everything moving in the right direction.
Talk to Everyone Together
If you have more than one adult child, getting everyone involved in the same conversation can make things easier. This will ensure that your children are all on the same page, reducing the likelihood of confusion. Plus, it helps you avoid looking like you are favoring one child over another, which can make the situation more volatile.
Ease into the Topic Slowly
For many children, thinking about their parents passing away is hard. If you approach the subject too quickly, their emotions may spike, making the discussion less effective.
While you do have to start the conversation somewhere, try to use a gentle approach. Tell them that you are planning in case something unexpected happens. You can also start the conversation by telling them about new information that you have read. You can let your children know, for example, that you have read an article on the cost of long-term health care and that you were inspired by it. Then, just segue into the conversation naturally.
Focus on the practicality of the discussion. Mention your plan and how you want it to be followed. You may not want to reveal every detail. You don’t need to divulge every detail if you have no intention of requiring financial help from your children, or if you do not want to reveal the dollar amounts associated with your assets. Include your will, your banking and brokerage details, your titles and deeds and powers of attorney. If you enjoy a good relationship with your children, then you can share more. However, covering those topics should be considered a must-do.
Enlist the Help of a Professional
If you are nervous about discussing your financial assets and plan with your children, consider getting help from a seasoned ally. By using a third party, you can reduce the emotional tone of the discussion. They can also help resolve disagreements and put their foot down when you need it. Was the conversation easy for you or difficult? Read More:
How To Talk About Money With Everyone In Your Family
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