How to talk to your children about inheriting wealth amid the Great Wealth Transfer 

It can be understandably difficult to talk to family members about money and passing down assets, so it’s not surprising that many avoid the subject altogether. 

However, the UK is currently undergoing a significant transfer of wealth between generations, a phenomenon expected to continue over the next few decades, known as the ‘Great Wealth Transfer.’ 

Around £5.5 trillion is forecast to be passed between generations in the next 30 years, according to the Kings Court Trust. 

58% of people surveyed by Brewin Dolphin said they hadn’t discussed whether they plan to pass on money with their children, while 47% of children said they never expect to receive financial help from their parents. 

There is also a divide in inheritance expectations between men and women. Female advice seekers are more likely to report an inheritance as part of their asset wealth (19% vs 12% of men), according to research by Unbiased.  

While having a conversation with your children may be uncomfortable, it is vital. 

We explore the importance of having conversations with your children about what happens after you die, including inheritance expectations.   

Why is it important to talk to your children about inheriting wealth? 

Before we explore the importance of talking to your children about inheriting wealth, it’s first important to make sure they have a good understanding of general finance. 

According to MoneyHelper, children are ready to learn about money and managing it from the age of seven. This includes the importance of spending and saving, as well as lending and borrowing.  

When your child has a good understanding of money, including responsible ways to save and spend, it can make it easier to broach more complex subjects when they’re older.  

It can also help your children become self-reliant, as they can take responsibility for generating their own wealth through investments. 

There’s no right age to discuss an inheritance with your child, so it’s up to you to decide when is best. As you’ll need to share what is included in your will and how your assets will be distributed, waiting until your children are older is a wise decision. 

Talking about your inheritance can help your child understand what to expect and avoid any conflicts with other family members after your passing. If disputes arise, they can lead to unnecessary friction and delays in distributing assets. 

It can also help them with their own financial planning, including how they’ll reach their long-term goals.  

You can also explain why you’ve made your decisions while you’re alive and allow you to offer financial support without your children relying on an inheritance.  

Tips on talking to your children about inheritance 

Now we’ll explore some tips to help you talk to your children about inheriting wealth, although it’s worth stressing you should be talking to them about money throughout their lives, not just about estate planning.  

Understand their long-term goals 

When starting off the conversation, it’s a good idea to understand your children's long-term goals. For example, are they planning to buy a home or start a family? 

Are there expectations of financial support, or are your children self-sufficient? If you left your assets to more than one child, would this be equally distributed? 

Understanding your children’s long-term goals can help the wider family with their financial planning. It can also help you decide how you want to distribute your assets. 

Discussing long-term goals is best left until your children are older, during major life stages, or if a significant life event may trigger a transfer of wealth. 

Consider the best way to talk to your children 

It’s a good idea to consider how to talk to your children about your wishes after death.  

If you have more than one child, would you prefer to talk to them separately or together? Would you prefer to involve a financial adviser who can delicately address the subject and offer advice if anyone has any questions? 

Talking to your children with an adviser present allows you to explain your wishes and avoid miscommunication or hurt feelings. It’s also a chance to outline who the executors are of your will. 

It’s important to remember that you also don’t need to disclose your full will but instead can discuss the areas that’ll affect your children. 

Focus on the facts, not death 

As inheritance is linked to death, it can be an understandably emotional topic. 

However, by discussing what will happen after your death, your will, and focusing on long-term goals, you can make the conversation more proactive. 

For example, is it best to pass on assets while you’re alive via gifting, to use a trust or to pass on any assets after death? 

If you use a trust, ensure your children understand the conditions under which they can access their assets – will these become available from a set age or based on specific conditions? 

Ensure your kids understand that estate planning can change 

Several factors can impact your inheritance plans, including divorce, marriage, caregiving costs, and the arrival of new grandchildren. 

Many may already be considering changing their estate planning ahead of planned IHT changes from April 2027. It’s a good idea to get expert financial advice with any estate planning. 

When discussing your inheritance with your kids, it’s essential to stress that these plans may change, and any changes can be discussed openly before they take effect, so no one is surprised.  

Talk to your children about any issues 

If there are any issues, whether personal or financial, it’s best to let your children know now, so you can help them prepare.  

Ultimately, your inheritance and maintaining this wealth are the responsibility of your children, so it’s worth preparing them as best you can. 

Alternatively, if you have a business, it’s a good idea to involve them, and when the time comes, discuss succession planning with them.  

Get expert financial advice 

Discussing estate planning with your loved ones, especially your children, is never easy, but it’s a necessity if you want to ensure any beneficiaries are prepared. 

A qualified financial adviser can make the process easier by helping you and your family plan for the future and offering assistance with any difficult conversations. 

Unbiased can quickly match you with a qualified financial adviser.