Wealth transfer from one generation to the next

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3 min
By Birdee

Preparing for the transfer of assets: A legacy to be managed wisely

The financial landscape is gearing up for a change of historic proportions as baby boomers prepare to pass on their property and other accumulated assets to the next generation.  According to the "Wealth Report" by estate agent Knight Frank, millennials could benefit from a considerable windfall over the next 20 years. A windfall that could amount to around 83,100 billion euros in the United States alone, making millennials the richest generation of all time.
Yet many parents are still avoiding the conversations necessary to prepare their adult children to manage this financial inheritance 🤐.


The money taboo persists

Despite the scale of this wealth transfer, Thuy Lam, Certified Financial Planner at Objective Financial Partners, points out that the majority of parents do not discuss the subject with their children 🤷‍♀️. Only a third of parents take the time to have an open dialogue about managing family wealth. The persistent taboo around money makes these conversations rare, even though children's financial literacy is a major concern for parents 🤔.

Money has, in fact, always been a touchy subject 🫢. Should we talk more about money ? Our article explains where this discomfort with talking about it comes from, and above all, why and how to overcome this taboo!

The second, and equally important, concern is how spouses manage their children's finances. Even if the marital relationship seems stable, parents dread future eventualities, wishing to protect the family inheritance in the event of a break-up 💔.


Inheritance as a source of concern

Tracey McLennan, Director of the Client Advisory Group at Edward Jones Canada, points out that the issue of inheritance is becoming sensitive because it is linked to mortality. Parents are concerned about passing on their wealth and want it to be meaningful. Many wealthy families want to prevent their assets from being wasted and want to ensure that their positive impact is felt over several generations.

As you can see, inheritance money is an issue that should not be overlooked. The rules in this area are complex and deserve to be studied in depth 📚🔍. For more information on the subject, this article explains how to invest your inheritance money and honour his memory in an enlightened way 💡


Delicate but necessary conversations

To deal with these delicate issues, Tracey McLennan recommends that adult children offer their parents support during this potentially stressful period. Working with advisers can act as a mediator, facilitating communication between family members. Discussions about documents, wills and powers of attorney should be shared transparently so that parents' wishes are understood. 👨‍👩‍👧‍👦


Financial education: The key to confidence

Thuy Lam encourages adult children to begin their own financial education by reading news, listening to reputable podcasts, and seeking expert advice 📰🔍 . The confidence gained in this way can ease the anxiety associated with suddenly managing large sums of money 🧘 . Parents, for their part, express the wish that their children make informed decisions, understanding the responsibility of the gift they are given.

This financial education starts at an early age. But how do you talk to your children about money ? Our blog article gives you the keys to successfully educating your offspring about money, the easy way!


Conclusion: A worry-free transfer of assets

Preparing for the transfer of wealth from one generation to the next requires open and transparent conversations. At Birdee, we understand the importance of these discussions and we're here to support you. Our investment advice platform, using algorithms and ETFs, aims to make discretionary management accessible to all.

Together, let's build a strong, respectful and transparent financial future.



Source : Finance Investissement (2024, 8 février) Préparer le transfert du patrimoine d’une génération à l’autre. Finance et Investissement.



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