Parents often avoid talking finances with their adult children, especially when significant assets are involved. Yet holding back on these conversations can create confusion and even lead to conflict down the road. Recently, a client in her 70s shared her concern that her children knew little about her finances, leaving her worried about how they’d manage her legacy when she’s no longer there to guide them.
Simplify Your Finances
We started by making things simple. She had accounts all over the place—different banks and brokerage firms—and it was a mess to keep track of. I suggested she consolidate her accounts. This would reduce her stress and make everything easier to manage. Plus, with her finances in one place, her kids would have a clear plan to follow down the road. Simple is better!
Share Your Intentions
My client shared that she’d given her oldest daughter a big gift to help buy a house but hadn’t told her other kids. I asked, “How do you think they’d feel if they found out later?” Keeping it a secret could lead to misunderstandings and hurt feelings. I suggested being upfront with her kids. By explaining her reasons, she could avoid future problems and build trust. It’s her money to use as she wants, but a little transparency can go a long way in keeping the peace.
Involve Your Kids Gradually
My client was worried that her kids didn’t know much about managing a large portfolio. I told her, “They don’t need to know all the details, but understanding the basics—like your financial goals and approach—can make a big difference.” I also suggested, “Introduce them to me so they know who’s handling your U.S. portfolio.” We agreed that inviting her kids to sit in on a few meetings or calls could help them learn gradually.
Starting these conversations might feel tough, but involving your kids early can secure your legacy and build their financial confidence. If you’re wondering when to bring your children into your financial planning, a cross-border advisor can guide you. Schedule a free Cross-Border Financial Evaluation at profile-financial.com/call to see how we can help.
Published March 5, 2025.