Associate Director at dmca Alison Stanbridge recently spoke to News Limited about the importance of talking about inheritances with children.

Alison believes although it is hard to talk to children about money, it is best to be clear, honest and to open conversations early when they are younger. This paves the way for more adult conversations down the track when more complicated matters may have to be discussed like plans for wills, inheritances, and dividing a business on retirement.

Alison advises people to involve adult children in important legacy discussions. At the very least, it is important for children to know who prepared a parent’s will, where the documents are held, and details of the executors.

Alison suggests that being more open from the beginning can prevent nasty family arguments later.

“You don’t necessarily need to talk about the financial position of the family, but a general discussion on the distribution of assets or heirlooms in advance invites communication upfront, helping to avoid arguments later.

“One beneficiary may feel things are unfair and they’re entitled to something someone else received, often due to being emotionally tied to an asset or person.”

Alison believes getting a family lawyer involved to assist with discussions can also help if conflicts arise, or if you need to make sure family members understand their obligations.

“At times we recommend to a client that a family meeting with their estate planning lawyer might be a great way to help break the tension and to get some perspective. Having a third party explain to everyone in the family how wills work, what has been prepared (and why) can be valuable. They can also explain the role of an executor.”

For more information on how you can structure your business or make plans for succession in a business, contact Alison Stanbridge directly at dmca advisory. More on this topic here