Early and open conversations by families about planning and succession is key to prevent future issues cropping up.
That’s the message from the latest research report by STEP, the Society of Trust and Estate Practitioners, which says that communication is the most important advice they could provide to families.
Stephanie Chung, an affiliate member of STEP, and solicitor in the private client team at Wake Smith agrees with the findings of the Meeting the Needs of Modern Families report.
“When asked what one piece of general advice for families to prevent future issues, respondents overwhelmingly identified communication with early and open conversations in families about planning and succession as the greatest asset.
“This emphasis on communication, especially early communication, is a clear move away from the traditional, more paternalistic historic approach of keeping younger generations sheltered from too much knowledge for as long as possible.
“This approach is increasingly seen by advisors as archaic and being consigned to history.”
By talking about estate planning you can:
- Create an early and clear dialogue with all family members and other important individuals
- Find out realistic expectations of family wealth, intentions and expectations
- Be open with how assets are intended to be distributed – so there are no nasty shocks or challenges to estates
- Encourage communication and a willingness to compromise to prevent conflict
- Discuss any matters that arise as they go along rather than waiting until the event has happened
The other key piece of advice, and one that for many respondents was linked to communication, was to plan, well in advance, and not over complicate matters.
By planning early you can:
- Prepare while there are no conflicts and family members are healthy
- Keep lines of communication open with each other, rather than it being too late
- Help avoid difficult conversations in the future
- Make everything as simple as possible
This web-based question survey was compiled by STEP, the worldwide professional association for those advising families across generations, last August.
It used voluntary members of the STEP Modern Families Thought Leadership Steering Group attracting 200 free-text answers, highlighted by over a third of the responses, that communication was the one piece of general advice for families to prevent future issues.
Stephanie added: “This report clearly shows an increase in the complexity of modern family dynamics.
“This, coupled with cross-border issues and a changing regulatory landscape, presents challenges when managing wealth, developing succession plans and protecting assets.
“Communication, simplicity in structuring and advisor collaboration will help families address the issues they face in planning for their futures with certainty and clarity.”
If you want to find out more about estate planning and succession including Wills, Lasting Power of Attorney and Trusts contact Stephanie Chung on 0114 2242114.
