Parents are often very reluctant to discuss the parents’ financial situation with their grown children. It is important to do so for things to go smoothly later.
If you are a typical parent then you probably expect that your children will inherit your assets. You probably also expect that when you get older and are unable to handle everything for yourself, your children will assist you.
That is what happens in most families.
However, most families also make a pretty big mistake when it comes to these expectations. They assume the children will be able to step in immediately and take over for the parents having little or no prior knowledge about any details.
This can lead to big problems, which is why parents should talk to the adult children about the finances as TC Palm discusses in “Acquaint grown children with your financial affairs.”
You do not need to tell your adult children every last little detail about your finances.
Nevertheless, they need to know enough so that they can take over with few problems.
They certainly need to know where to look for details regarding your assets. While you are at it, make sure your children are familiar with financial concepts that they might not know.
What do they know about basic “financial planning”?
One great way to make things easier for your children is to get an estate plan. Going through that process can give you an idea of what you need to let your children know.
Reference: TC Palm (Oct. 30, 2017) “Acquaint grown children with your financial affairs.”
