When discussing wealth with adult children, parents may worry about their reaction. To minimize conflict and mistrust, consider having a conversation about your will and other sensitive documents before signing it. However, some parents might wonder if revealing too much information could be problematic.
Financial experts agree that finding the right balance is key. It’s essential to gauge your child’s maturity level, financial knowledge, and willingness to understand the family’s financial holdings. Parents should decide how much to reveal in stages, starting with an overview of their legacy and gradually providing more details as needed.
Proceeding incrementally can help avoid over-disclosing sensitive information too early, which might discourage children from working or building careers. Even if parents feel uneasy about explaining investments or listing assets, taking proactive steps is better than procrastinating.
Before discussing wealth, consider questions like: How do your children handle their own money? What’s their personal life like? Do all your children get along? By understanding these factors, you can determine how much to reveal and avoid potential issues. For example, some parents might resist disclosing information due to privacy concerns or fear of loan requests.
Ultimately, finding the right approach depends on individual circumstances and parental discretion. Be prepared to adjust your strategy as needed to ensure a smooth conversation about your wealth with adult children.
Source: https://www.marketwatch.com/story/tell-your-adult-children-about-your-wealth-just-dont-tell-them-everything-2bdcf96f