Sibling relationships can be complicated… even among adult siblings. As a financial planner working primarily with American olim, I often encounter families at crossroads dealing with the complexities of both finances and family relationships. A recent case involving five siblings managing their aging parents’ U.S. investment portfolio exemplifies both the challenges and triumphs of family financial planning.
Assign Roles Clearly
All the siblings wanted “the best” for their aging parents; the unity displayed was remarkable. Despite different levels of financial expertise, they worked well together. In this case, they arranged a group Zoom call with me to discuss their parents’ needs. Their cooperation allowed us to efficiently strategize about asset management, ensuring all the siblings played a role suited to their capabilities.
One critical step in family financial management is designating roles. I advise appointing one sibling as the financial point person. This approach simplifies decision-making and enhances communication with the financial advisor, which is crucial for timely and effective portfolio management. Other siblings can handle different aspects, such as healthcare decisions or daily logistics, allowing the financial advisor to focus on strategic financial planning.
Open Communication is Key
Parents need to discuss their financial situation and intentions clearly with their children. This transparency prevents misunderstandings and ensures that all family members are prepared to uphold the parents’ legacy, including charitable giving and other personal wishes.
Consider these steps:
Initiate the Conversation Early: Don’t wait for a crisis. Parents and children should discuss financial responsibilities and expectations openly and early.
Designate Roles: Assign specific roles to family members, including one as the primary financial liaison.
Seek Professional Advice: Engage a cross-border financial advisor if dealing with assets in multiple countries. This expertise is crucial for navigating complex regulations and optimizing financial strategies.
If your family is facing a similar challenge, contact us for a free Cross-Border Financial Evaluation at profile-financial.com/call. We’ll take the time to understand your situation to see how we can help.
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates give tax or legal advice.
Published July 16, 2024.