The holiday season gives families the chance to get together for quality time and festivities, but it also presents you with an important opportunity – to have a constructive conversation with your family about your finances and estate plan. If you’ve been meaning to have this discussion but haven’t started it yet, the holidays are a perfect time to do it. While it may be difficult at first, the benefits to everyone will be worth it.
Fidelity Investments found that 86% of parents felt peace of mind after having conversation with their children, yet only one-third of parents and children agree about the right timing for these conversations.1
Introduce Your Spouse to your Financial Advisor
It’s not uncommon in many households for one person to handle the finances. In these cases it makes sharing the details of your financial plan with your spouse even more important, so they’ll be able to handle everything if needed. During this festive time of year there are lots of parties, gatherings and exchanges. This presents an opportunity to further develop or potentially revise your financial plan together. Your financial advisor may even help as many have experience with these conversations and can keep the discussion focused while making sure all the relevant information is covered.
| Adults and children are more comfortable speaking about finances with a financial advisor than they are with each other, according to a survey by Fidelity Investments.1 |
Initiating the Conversation
It’s up to you and your spouse to decide how much information you share with your family. Some children may not be ready for this type of conversation, or capable of handling finances. It’s good practice to at least have the estate planning discussion on a basic level, just so the family knows there’s a plan in place and everyone understands the steps for putting it in motion.
Providing the Right Estate Planning Information
The holidays may not be the right time for a detailed estate planning conversation with your children. But at a minimum, you can provide them with contact details for those involved with your finances. These include your financial advisor(s), estate attorney and CPA. Also consider introducing these individuals to the person or people who will take over your estate.
New Year’s Resolution?
In addition to eating less and exercising more, another good resolution may be to include your spouse and children in conversations with your financial advisor about your investment plan. You can also share physical or electronic copies of your will/trust documents and account statements.
Enjoying the holidays with your family is priceless. Sometimes it’s the one time in the year everyone is together, so while savoring these fun times give yourself the gift of peace of mind in the New Year: talk with your loved ones about your financial desires. Then go back to the buffet for another helping!
Sources:
1. Fidelity
