Leaving an inheritance to loved ones is a timeless way to ensure your family and assets are cared for. Though thinking about our own mortality may be challenging and upsetting at times, it is important to ensure your heirs are prepared before receiving their inheritance so that your funds and assets are properly distributed and your estate is handled with care.

 

Explain Financial Details

Discussing personal finances is not common, but it is important to have open, honest conversations with future heirs about your finances as this can help them know what to expect upon your passing. If you are planning to leave assets to your heirs, explaining what those are and how they should manage them will help them maximize their benefits. If they are unaware of what they are getting into, they will be unable to effectively manage your assets, resulting in a loss of capital.

Additionally, you do not need to keep your heirs in the dark about their inheritance; in fact, many situations will benefit from communication prior to your passing. Even if your heirs don’t know exactly what they are inheriting, it will be beneficial for them to know the details of your estate so that there is mutual trust and understanding before such things become necessary.

 

Develop a Family Strategy

In addition to having honest communication about your personal finances, it is also advised that you have an open conversation regarding family values when it comes to wealth management. If your goal is to uphold your family’s wealth for some time, you should strive to initiate this conversation to promote healthy financial habits that coincide with your long-term financial goals in your heirs. Once you agree upon terms and values, you should put such things in writing. Establishing a plan that spans generations can help heirs determine how to spread out their inheritance in a way that benefits the family at large.

 

Build Trust

Beyond talking about financial matters, you should also strive to build trust organically with your heirs. Being a part of the family should be a top priority. What this means will vary from family to family, but it could take the form of scheduling regular family activities, physically taking care of children, and teaching valuable lessons of morals, family values, and finance to your heirs. Building trust takes time, and if you want to feel that your estate is in good hands upon your passing, engaging with your family while you are still around is a great way to do so.