Lowes Inheritance Guide (Old)

LOWES INHERITANCE GUIDE

3 Keep it in the family

Conversations within families about money matters, especially as they relate to end-of-life planning, can be tough. Sibling squabbles around inheritance are unfortunately quite common, with questions of ‘fairness’ arising, especially when details come as a surprise.

Inheritance is often an emotional subject, with money matters to deal with during the grieving process. By having open and honest discussions with your children and other potential beneficiaries, it’s possible to set the scene for what is going to happen and preserve family harmony in the future. Money remains a taboo subject within many families, especially where parents are part of the post-war baby boomer generation, growingup in an environment where it was often considered impolite to talk about financial issues. Getting members of the family to sit around thedining roomtable to talkopenly about your plans for future inheritance is a positive step. Fairness doesn’t necessarily meanequality, soexplainingyour rationale can help reduce the sting of any unequal payments to come. Unequal inheritances can arise due to the presence of children from previous relationships, or the provision of earlier financial support to one or more siblings, with inheritance in a will then designed to make things more equal.

Having conversations on a one-to-one basis, in the first instance, can help before coming together as a group. This reduces the chances of unwelcome surprises during a family dinner. Always keep in mind that your children, once adults, are responsible for their own financial lives. Any inheritance they receive is a privilege, not a right. If you’re in the fortunate position of being able to leave a substantial legacy to the next generation, either during your lifetime or on death, then it’s even more important to teach your children the value of financial independence. You can involve a Lowes Consultant in these family discussions. Having an impartial thirdparty mediator at family meetings can help to reduce levels of emotion, keeping all involved focused on the critical issues at hand.

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