The benefits of intergenerational financial planning
Intergenerational financial planning is an increasingly used wealth management strategy designed to ensure the smooth and tax-efficient transfer of wealth down the generations – and there are many benefits to this approach.
Getting the family involved
Many of us find it difficult to talk about money, and it can be a taboo topic even among the closest of families. An intergenerational financial planning specialist can help open up positive conversations about money with your family, facilitating honest discussions about what each family member expects from your wealth in the future. This avoids the hostility and upset that frequently occurs when beneficiaries don’t receive the inheritance to which they believe they were entitled.
Involving your children and even grandchildren in your financial decisions can also be a useful and educational experience. It will help boost their financial literacy and ensure they are better prepared for the financial responsibility of dealing with their inherited wealth when the time comes.
Another key advantage of early planning is that it gives you greater control over the process, meaning it is more likely you’ll still be around to witness younger generations benefiting from your money. Increasing life expectancy means that many people receive an inheritance when they no longer have a pressing need for it. Transferring wealth earlier means it is more likely to be of real benefit to your heirs; they might use it to pay off their mortgage, for example, or put their children through school.
Getting to know all about you (and your beneficiaries)
Getting your family involved in the financial planning process also provides an invaluable opportunity for us to get to know your beneficiaries, helping us build up a relationship that puts us in the best position to help them with their finances just as we have helped you. If you would like to discuss your intergenerational financial planning requirements, please get in touch.