Family conversations about finances can feel awkward and are often avoided. But transparent and timely communication between generations is vital for preserving wealth and family businesses.

The cost of silence

When you don’t speak to your kids about the future and your family’s financial situation, they can start to build their own expectations. These can be a long way from the truth resulting in  disappointments for the future. Starting the conversation now means your children will be prepared to manage and understand your family’s wealth in the future.

Overcoming fears

It’s easy to avoid tricky conversations on wealth planning that cause us to reflect on our own mortality but failing to do so can lead to complications in the future. Sometimes, the grown-up conversations can’t wait until they’re grown up. One way to approach this is by using a significant life event, like major birthdays or a child leaving for university, as a marker for having the discussion.

Sharing plans for preservation

It’s also important to consider your family’s opinions towards wealth and its preservation. A good starting point is to think on whether the family has a shared interest in continuing the management of their wealth together.

Consider their thoughts on the future and think about incorporating certain aspects of their approach into your own vision for your future wealth.

Vision into action

Once your family’s attitudes towards wealth preservation are known, put a plan in place to actively work towards that future vision. Consider writing it out together to ensure you’re all on the same page.

This plan should not only outline future wealth preservation goals, but also ways to maintain the family’s current wealth until it is passed on.

 

If you’re interested in learning more about structuring your wealth for the future, please go to www.hsbcprivatebank.com to find out more.