Why Involve A Financial Advisor In Your Family Wealth Transfer

Many baby boomers that have created their wealth are facing complex decisions regarding passing on money to their children. There has been a growing concern with how their children might mismanage their wealth, along with the legacy that they have so carefully created. And even so, most parents have not included their children in any discussions regarding their finances.

To ensure your wealth transfer plans are carried out as you intended, you need to include your children in the discussions with your financial advisor. If you’re concerned about how your money will be managed once you’re gone, read through this article to learn more about why you should involve a financial advisor in your family wealth transfer dynamics.

Strengthen The Relationship

Your financial advisor knows your financial goals and the structure of your wealth planning. By incorporating your adult children into financial meetings, you can help to establish a lasting relationship between your children and your advisor. Your children will also be able to understand your financial decisions better, how you currently manage your money, and the crucial role the advisor plays in the process.

If you do not include your children in the discussion, they could stray away from the plans you had originally made. It is important that they see the vision you have planned and are kept in the light as priorities change and decisions are made. This way, they will be set up properly to make the big decisions when the times come.

Provide Direction

As parents plan for retirement and their end-of-life needs, they will face difficult decisions about how to allocate their assets. A financial advisor can help clients plan for these exact needs. More specifically, your advisor can provide direction to your children and set them up for future financial success as a family unit, and not just on their own.

In the case that you own a business, your financial planner can also assist you in planning for how the forthcoming business structure will unfold and how the wealth will be generated going forward.

Mediate Expectations

Each generation thinks, plans, and communicates much differently from others.  Expectations about the inheritance of money are often at odds with each other. Boomers generally have dedicated their lives to their careers and have built their wealth through hard work. They look forward to a well-deserved retirement but would also like to see their legacies continue.

Generation Xers and millennials come from a different time and likely will have very different ideas on how they would like to spend the inheritance money. A financial advisor can ensure that all expectations are uncovered and mediated to ensure a successful result.

With many boomers reaching retirement and starting to pass along their life savings to their children, it’s important to start including your children during your financial planning. The impending wealth transfer will come with many challenges, and a good financial planner can help to bridge any gaps to ensure your legacy is passed down and carried on as you intended.