Money and financial decisions are often seen as a personal matter. However, making your family part of the estate planning process and discussing your goals with them can be valuable.

A report from M&G Wealth found that 33% of advised families share the same adviser, with around 57% of those sharing the same adviser as their parents.

If you’re used to keeping your finances and plans separate, it can be difficult to begin sharing an adviser and discussing opportunities or concerns you have with others. However, sharing an estate planner doesn’t have to mean sharing every detail of your plan, and it can help you and your family reach goals.

Here are five reasons you should think about involving your family in your estate plan.

1. Your plans are likely to be intertwined

When you set out what’s important to you, it’s likely your family will be included in some way.

By using the same estate planner as your parents, children, or other family members, you can create a plan that reflects your priorities and the situation of others more accurately.

It’s also a step that can provide peace of mind. You will know that the people important to you are receiving expert advice that will help them reach their goals and achieve long-term security.

2. It provides an opportunity to understand the situation of others

The report found that 37% of people that share an adviser believe being aware of the situation of others is a benefit.

Intergenerational planning can be complex, and there are likely to be many different concerns. However, using the same estate planner can help you understand what your family is worried about and the steps that can be taken to improve their security.

The report highlighted how concerns are likely to vary significantly between generations.

Among baby boomers, the biggest concern was rising inflation, followed by their investments losing money. As many baby boomers will have retired, investments can provide a valuable source of income and they may not have an opportunity to grow their portfolio with further contributions. As a result, managing investments is crucial.

In contrast, millennials were most concerned about not being able to save enough. The younger generation may be struggling to get on the property ladder and put enough away for retirement as they face cost of living challenges.

3. You could reduce your family’s tax burden

Having a combined plan that considers a variety of goals and concerns can mean you’re able to take advantage of more tax allowances.

In the M&G Wealth survey, 35% of families said saving on tax was a positive outcome of planning as a family. Many different allowances may be suitable for your family and it’s important to understand which ones could be right for you.

4. It can help you pass on wealth more effectively

If you want to leave wealth behind for loved ones, working together can ensure you do so more effectively.

According to the report, younger generations can expect to inherit £293 billion over the next 20 years, and it could reach as much as £5.5 trillion by 2047. With the average individual born after 1980 set to receive between £200,000 and £400,000, a holistic estate plan that considers things like Inheritance Tax, trusts, or provides advice for beneficiaries is important.

In addition, the report found that longer life expectancy means younger generations will inherit wealth later in their life, with an average age of 61. As a result, you may want to explore gifting during your lifetime to help younger members of your family to reach milestones sooner.

5. It can help you provide support to vulnerable family members

An estate plan that considers your whole family can provide vital support to vulnerable people, such as elderly relatives.

34% of people said supporting parents and grandparents was a key reason for using the same estate planner. Not only does it mean their plan is being handled by a professional, but it can also provide you with an opportunity to better understand their wishes and needs.

If you may need to make decisions on their behalf, you’re in a better position to act in line with their goals and it can take some of the pressure off you.

Contact us to discuss your family’s needs

We understand that discussing your plans with loved ones can be difficult, and there isn’t a one-size-fits-all solution for every family.

The survey found that 59% of families that share an adviser meet with their planner separately and a third have boundaries about what they want to share. Using the same planner doesn’t have to mean that you disclose everything, but it can help you and your family plan more effectively.

If you’d like to discuss working with your family to put in place a long-term estate plan that considers all your aspirations, please contact us by emailing enquiries@strathmorewills.co.uk  or calling 01708 923 303 .

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

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