Published on CNBC.com by AJ Horch
November 12th, 2020
After a loved one passes, one of the biggest hurdles families face is passing wealth onto the next generation. Unfortunately, family dynamics can spur conflict and infighting among descendants.
Over 75% of advisors polled by Key Private Bank said that the hardest part of estate planning is navigating interfamily dynamics, according to a survey released in 2019. The bank surveyed 130 of its client-facing advisors about their experience with individuals engaged in estate planning.
It’s important to have an open dialogue when it comes to dividing up the household, and there are multiple ways to avoid conflict.
There is a lack of clarity and transparency from generation to generation. The older generation thinks they did everything right from wills and trusts but often they didn’t explain their reasoning to their child and didn’t give their children time to offer input.
Mariana Martinez, Family Dynamic Consultant, Wells Fargo Private Bank
People fight over old bibles, paintings and nik naks. These items may not hold a lot of monetary value, but to the heirs these items are the last link to a loved one… In some cases, a child believes that an item left for them is a link to the perception the parents held of them.
