Research published by Netwealth finds that 47% of people do not intend on splitting their estate equally between their children.
The figure comes from the Generation Game: Financial Tribes in Family Finance, a report published by Netwealth, in association with Emma Maslin – founder of The Money Whisperer. As stated by Netwealth in the report, the study “highlighted seven ‘financial tribes’ that describe the varying approaches individual family members can have to finance, and the added psychological complexities these attitudes to how families deal with money matters.” The survey took place thanks to 2,000 participants which included 1,000 young adults aged 25-35, and 1,000 parents of 25-35 year olds.
These ‘financial tribes’ mentioned are: The Head in the Sand Avoider, The Self-Sufficient Saver, The Big Spender, The Lifestyle Lover, The Calculated Risk Taker, The Wealth Sceptic, and The Generous Giver.
Elsewhere, 76% of parents questioned as part of the research said that they believe their child is in control of their finances. In comparison, only 52% of young adults actually agree with their parents’ assumptions. This is not surprising, when you consider that Netwealth found that only 23% of young adults have had open discussions with their parents about their respective plans for the future.
Writing a will and settling your estate is not a comfortable, nor necessarily easy process. Often issues can arise, as Netwealth explains, “a combination of poor communication between generations, plus these tribal characteristics, can significantly impact effective family financial planning and amplify critical short and long-term concerns.”
Charlotte Ransom, CEO of Netwealth commented on the report as featured in an IFA Magazine piece: “While there is no one-size-fits-all approach to family financial planning, open communication early on is an absolute priority. There’s a tendency for parents to assume that their children are aware of their inheritance plans but our research shows that too often this isn’t the case. By breaking down the taboo of speaking about money, parents can provide helpful clarity for the future and enable everyone to make more informed financial decisions, both as individuals and as a family. This also allows disagreements or issues to be discussed and potentially resolved rather than leaving the next generation the task of tackling difficult decisions made by their parents.”
Are you at all concerned about how you are approaching your will or estate planning? Speak to your local wills and probate experts at CWC Solicitors today from our Plymouth, Tavistock, Torporint or Kingsbridge office to see how we can support you and your family.